Phillip Frost's OPKO buys hepatitis vaccine co Sci-B-Vac

The Sci-B-Vac is a recombinant mammalian cell vaccine for treating patients who fail to respond to conventional hepatitis B vaccines.

OPKO Health Inc. (NYSE: OPK), controlled by Teva Pharmaceuticals chairman Phillip Frost, has acquired 45% of Sci-B-Vac, which produces a third-generation hepatitis B vaccine of the same name, at its biologics manufacturing facility in Rehovot. OPKO did not disclose the financial terms of the acquisition.

Sci-B-Vac's previous owner, FDS Pharma LLP, acquired the company from SciGen Ltd. (ASX: SIE) in the fourth quarter of 2011 for $2 million plus royalties on sales. The current deal probably totals a few million dollars.

SciGen, a Singapore company, run by CEO Saul Mashaal, previously invested $10 million in the facility, but was forced to sell it, due to financial difficulties of SciGen's parent Polish company, Bioton SA (WSE: BIO). FDS, which manufactures active pharmaceutical ingredients for Russian and other markets, acquired the rights to manufacture and market the Sci-B-Vac vaccine. Sci-B-Vac is sold only in Israel and has an annual turnover of $150,000. Although it is licensed in other countries, there are no foreign sales.

The Sci-B-Vac is a recombinant mammalian cell vaccine for treating patients who fail to respond to conventional hepatitis B vaccines. Clinical trials indicate that the vaccine may be applicable for immunotherapy of chronic hepatitis B, and not just as a preventative vaccine.

Frost merged OPKO with a stock market shell in 2007. After the failure of its lead ophthalmologic drug candidate, Frost repositioned the company as a multi-field company developing drugs, vaccines, and diagnostic products. The company's lead candidates are still in the trial stage, and are not sold in the US, although there are sales in Mexico and Chile. Its lead products are blood tests for Alzheimer's and other difficult to diagnose illnesses.

Six months ago, OPKO acquired its first Israeli company, FineTech Pharmaceuticals Ltd. for $27.5 million. Based in the Haifa suburb of Nesher, FineTech produces high value, high potency active pharmaceutical ingredients (APIs), and is profitable.

Under Frost's leadership, OPKO is apparently build a production base in Israel, and it may acquire additional small but productive operations. OPKO has a market cap of $1.35 billion, and Frost serves as chairman and CEO, after increasing his stake in it to over 50%.

Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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