Deal between GSK, Brazil to strengthen country's pharmaceutical R&D

Sep 29 2009

GlaxoSmithKline (GSK) Chief Executive Andrew Witty on Friday announced Brazil has agreed to buy roughly $2.2 billion of the company's vaccine for pneumococcal disease, Synflorix, for a period of at least eight years, in exchange for a technology transfer, eventually allowing Brazil to manufacture the vaccine itself, the Wall Street Journal reports.

Because of the multiyear commitment, Brazil will receive the vaccine at a discounted rate, which will continue to fall over time, according to the newspaper. As part of the agreement, GSK will also invest in a research project for a dengue fever vaccine, Brazilian officials said (Whalen, 9/28).

The agreement "sets a baseline for sales in other middle-income countries, and for the Advance Market Commitment, a bulk purchase agreement with donor governments to help buy the vaccine for low- income countries," the Financial Times reports.

The newspaper continues: "Paulo Gadelha, president of the Fiocruz institute, which will produce the vaccine, stressed that the technology received could also be used to help it make other vaccines in future. He said his institute was already pledging to provide technology transfer to make low-cost drugs and vaccines for African countries, in what could provide a challenge for large pharmaceutical companies" (Jack, 9/28).