Glaxo to Acquire ID Biomedical for $1.4 Billion

In a move to become a leading global manufacturer of influenza vaccines, GlaxoSmithKline (GSK, London, UK) has agreed to acquire ID Biomedical Corp. (Mississauga, Canada) for U.S.$1.4 billion.

ID Biomedical is an integrated biotechnology company dedicated to the manufacturing and development of innovative vaccine products, including influenza vaccine. The company is currently in the process of expanding and upgrading its Canadian manufacturing facilities, which are expected to produce around 75 million doses of its Fluviral egg-based influenza vaccine, beginning in 2007. This vaccine has been granted fast-track status by the U.S. Food and Drug Administration (FDA). Upon the closing of the acquisition, ID Biomedical will become a wholly owned subsidiary of GSK.

GSK will assume responsibility for ID Biomedical's net debt, which was $77 million on June 30, 2005. In addition, GSK has agreed to loan the company up to $120 million to repay term debt and finance its cash requirements until the closing date. The acquisition has been approved by GSK's board of directors and is subject to approval by ID Biomedical shareholders.

"The proposed acquisition of ID Biomedical is a unique strategic opportunity to increase current capacity of classic flu vaccines, to provide us with increased capacity for next-generation flu vaccines under development and to help GSK prepare for the threat of a flu pandemic,” observed Jean-Pierre Garnier, CEO of GSK. The company's influenza vaccine, Fluarix, was cleared by the U.S. FDA in August 2005.





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