Vaccine Deal Between GSK And Binnopharm in Russia

Britain's GlaxoSmithKline and Moscow-based Binnopharm have agreed a deal allowing the Russian firm to make GSK's cervical cancer, rotavirus and pneumococcal vaccines for the Russian market.

Under the agreement, GSK will supply bulk vaccine and provide technology and expertise, while Binnopharm, a unit of oil-to-telecoms group Sistema, will undertake the secondary manufacture, including filling and packaging of the vaccines.

"The local manufacture of these vaccines should help Russia to modernise its National Immunization Calendar in the future, adding additional vaccination against highly prevalent infections such as human papillomavirus (HPV), rotavirus and Streptococcus pneumoniae," GSK and Binnopharm said in a joint statement on Friday.

HPV infection can cause cervical cancer, as well as head and neck cancers, and rotavirus can cause severe gastroenteritis, including vomiting and diarrhea, in children. Streptococcus pneumoniae can cause illnesses such as pneumonia and meningitis.

GSK said it would book sales of the bulk vaccines supplied to Binnopharm through the alliance, but the firms did not disclose any further financial details of the agreement.

"This agreement is an example of the flexible approach we are taking to make innovative vaccines more available in emerging markets through local partnerships," said GSK's head of emerging markets and Asia Pacific, Abbas Hussain.

The Russian government signaled last year it would give more benefits to local producers as it moves to improve healthcare and modernize the pharmaceutical sector, prompting many international drugmakers to explore the idea of establishing local manufacturing.