SK Bioscience, Sanofi to develop next-gen pneumococcal vaccines

South Korea's SK Bioscience Co. said on Friday it signed an expanded agreement with Sanofi to co-develop next-generation pneumococcal conjugate vaccines (PCVs) for pediatric and adult populations. 

Under this agreement, the two companies plan to develop and commercialize the GBP410, a 21-valent pneumococcal conjugate pediatric vaccine candidate.

The contract is valued at €350 million ($365 million).

Sanofi will pay SK Bioscience an upfront payment of €50 million ($52 million) followed by development and commercial milestone payments.

The research and development costs for the vaccine will be shared equally by the two companies. Sanofi will bear all costs related to commercialization.

After the commercialization of the vaccine, SK Bioscience will have commercial exclusivity in South Korea. Sanofi will sell the vaccines in overseas markets. 

SK Bioscience will receive royalty payments on product sales outside South Korea.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com