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2002 AUG 14 - (NewsRx.com & NewsRx.net) -- VaxGen, Inc., (VXGN) announced that its May 1, 1997, license and supply agreement with Genentech, Inc., (DNA) has been revised to give VaxGen greater flexibility in commercializing the company's AIDS vaccine candidate.
While Genentech maintains its option to market and sell the vaccine candidate in North America, the company has relinquished its option to commercialize it in the rest of the world.
The new agreement also reduces VaxGen's royalty obligations to Genentech for sales to the World Health Organization or United Nations for underdeveloped countries by up to 50% so that the vaccine can be made more widely available there. "This reflects the commitments of VaxGen and Genentech to ensure that AIDSVAX reaches not only the affluent markets but also countries where the AIDS epidemic is at its worst," said Donald P. Francis, MD, DSc, VaxGen's president.
Additionally, the agreement formalized Genentech's previous decision to waive its option to manufacture the vaccine candidate. "VaxGen and Genentech agreed that, given VaxGen's role in advancing the project, VaxGen should have control over the manufacturing of the AIDSVAX vaccine," said Lance K. Gordon, PhD, VaxGen's chief executive officer.
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