COLUMBIA, Md., Aug. 11 /PRNewswire/ -- Novavax, Inc. (Amex: NOX) today announced that it has acquired substantially all of the assets, excluding cash and accounts receivable, of the Biomedical Services Laboratory Division of DynCorp of Reston, Va. The division, established in 1964, is engaged in contract research, development and pilot manufacturing of human vaccines for government laboratories and other vaccine companies, generating over $2 million in revenues in each of the last three years. This strategic acquisition combines Novavax's Novasome(R) adjuvant technology with the Division's extensive expertise in vaccine development and manufacturing to develop therapies for the treatment of various cancers and infectious diseases. John A. Spears, President and CEO of Novavax, stated, "This acquisition significantly expands our internal vaccine developmental capabilities in the fields of both infectious diseases and oncology. Accordingly, we expect to establish a complete pipeline of vaccine products by combining our adjuvant technology with the Division's vaccine development and manufacturing capabilities. The acquisition brings with it several issued and pending patents in the areas of therapeutic and preventative vaccines that may be commercially exploited. Furthermore, the Division historically has generated sufficient revenues to fund its research and development programs. Our combined intellectual property base, existing contractual relationships and complementary technologies will allow us to explore the many possibilities of our union." Located in Rockville, MD, the Division's 12,000 sq. ft. leased facility is composed of offices, research and developmental laboratories, separate Quality Control laboratories, and a pilot GMP-compliant (Good Manufacturing Practices) manufacturing facility for preparation of molecular and tissue culture derived vaccines. In the last 12 months, the Division has manufactured five different vaccines, which are presently in or have completed Phase I or Phase II human clinical trials with either government collaborators at the National Institutes of Health or corporate clients. There are 26 employees in the Division consisting of scientists and scientific support staff, all of whom will be joining Novavax. The Director of the Division is Louis Potash, Ph.D., who also directs the Viral Tissue Culture Group. Dr. Potash has been with the Biomedical Services Laboratory Division since 1964 and is one of the original scientists who worked on both the Salk-type inactivated Polio vaccines and inactivated whole Influenza virus vaccines during the 1950s. Dr. Potash continues to make significant contributions in the fields of infectious disease and vaccinology and is an expert in the areas of new cell line development and characterization, viral proliferation and production in cell culture and eggs, preparation of live, attenuated respiratory and gastrointestinal viral vaccines, as well as inactivated viral respiratory vaccines. Robin Robinson, Ph.D., the Associate Director of the Biomedical Services Laboratory Division also directs the Molecular Virology Group and has been with the Division since 1995. Dr. Robinson and his group design and manufacture two different types of molecular vaccine products: molecularly expressed proteins (Hepatitis E ORF-2 capsid protein vaccine) and molecular expressed and secreted viral-like particles (VLPs such as the Human papilloma vaccine). D. Craig Wright, M.D., chief scientific officer of Novavax, stated, "We believe there will be significant synergies between our Novasome(R) adjuvant intellectual property portfolio and DynCorp's vaccine development efforts. Currently, our adjuvant technology is being tested in influenza, Human papilloma virus and HIV and HSV1 peptide vaccines. As a result, we are very excited to be joining forces with Drs. Potash and Robinson and their teams of world-class scientists to develop vaccines for a variety of human diseases and look forward to identifying our first candidates." The assets acquired include all personal property and equipment and all related intellectual property. In addition, DynCorp entered into a five-year non-competition agreement. The acquisition will be accounted for under the purchase method of accounting for business combinations. Headquartered in Reston, VA, DynCorp is a billion-dollar technology and technical services firm specializing in information technology, outsourcing and specialized technical services. With more than 16,000 employees and 550 customer and company locations worldwide, DynCorp is among the largest privately held technology companies in the nation. Novavax, Inc. is a biopharmaceutical drug delivery company engaged in the research and development of differentiated drug products for large and growing markets. The company is applying its proprietary lipid vesicle encapsulation technologies including Novasomes(R) and micellar nanoparticles to develop product candidates for the topical and oral delivery of generic and non- generic drugs, peptides, proteins and oligonucleotides. The company's Novasome technology is also being developed as an adjuvant delivery system for enhanced vaccine efficacy. Novavax has several product candidates in preclinical and human clinical trials, including ESTRASORB(TM), a topical cream for estrogen replacement therapy, which will commence a U.S. multi- center Phase III trial in 1999. Statements made in the press release that state the company's or management's intentions, hopes, beliefs, expectation or predictions of the future are forward-looking statements. The company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those projected in such forward-looking statements contained in Item 7 of the company's SEC report on Form 10-K for the year ended December 31, 1998. Copies of this filing may be obtained by contacting the company at 8320 Guilford Road, Columbia, Maryland 21046, phone 301-854-3900 and fax 301-854-3901 (Website URL http://www.novavax.com), or the SEC.
SOURCE Novavax, Inc.