Cangene announces continuation of biodefence programs with U.S. Government

August 30, 2012

WINNIPEG, Aug. 28, 2012 /CNW/ - Cangene Corporation (Cangene) announced today the extension of an existing contract and the signing of a new contract related to United States Government biodefence programs. The Company continues to leverage its expertise in biodefence contracting to supplement its pipeline-focused strategy in the specialty biopharmaceutical space.

Extension of AIG Contract
The Company has entered into a modification to expand the scope of work under its contract with the U.S. Department of Health and Human Services (HHS) for the development and supply of Anthrax Immune Globulin Intravenous (AIGIV). The contract modification extends to 2016 the timeline to conduct additional activities in support of obtaining licensure for AIGIV and could generate up to approximately $16.5 million in additional revenue for Cangene over the next four years representing an increase of approximately 11% of the original contract value. The original contract was initiated in 2005 and is scheduled to expire in 2021. This contract has been funded in whole or in part with Federal funds from the Office of the Assistant Secretary for Preparedness and Response, Biomedical Advanced Research and Development Authority. Cangene's AIGIV, a hyperimmune antibody product specific for Bacillus anthracis bacteria, was developed to treat inhalational anthrax and was first accepted into the U.S. Strategic National Stockpile in 2007.

New VIG Supply Contract
Cangene has entered into a new contract with the Centers for Disease Control and Prevention for the supply of Vaccinia Immune Globulin Intravenous (VIGIV) into the U.S. Strategic National Stockpile, and for services to support licensure maintenance activities for the product. The original 5-year contract for the supply of VIGIV, entered into in 2002 and extended for a further 5 years, has expired. This new contract is expected to generate up to approximately $9.8 million in additional revenue for Cangene over an 18 month period. VIGIV is a hyperimmune product to be used in treating and preventing certain types of severe complications that may be associated with smallpox vaccination, and is considered an important component of smallpox vaccination programs. Cangene's VIGIV product was first accepted into the U.S. Strategic National Stockpile in 2002 and was subsequently licensed in the United States by the U.S. Food and Drug Administration in 2005 and in Canada by Health Canada in 2007.

"We are very pleased to continue our work with the U.S. Government on these important programs," says John A. Sedor, President and CEO of Cangene. "Cangene will continue to pursue opportunities to leverage our core competencies in biodefence while maintaining a focus on our commercial product business and expanding our pipeline."

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"We are very pleased to continue our work with the U.S. Government on these important programs," says John A. Sedor, President and CEO of Cangene.