Biovector Therapeutics Announces That SmithKline Beecham Joins Biovector Therapeutics and BioChem Pharma for Development, Manufacturing and Marketing of the Novel Influenza Vaccine Nasally Delivered.

TOULOUSE, France--(BW HealthWire)--Dec. 10, 1998--Biovector Therapeutics SA, a private company focused on drug delivery systems targeting modern vaccines and gene delivery, today announced that SmithKline Beecham, one of the worldwide leaders in the vaccine area, will participate in the development, manufacturing and marketing of a novel, nasally delivered influenza vaccine with Biovector Therapeutics and BioChem Pharma Inc. (Nasdaq:BCHE; ME, TSE: BCH). BioChem licensed the nasal delivery technology from Biovector Therapeutics in May 1997.

Under the terms of the agreement, SmithKline Beecham, acting through its affiliate SmithKline Beecham Biologicals, and BioChem Pharma will collaborate to market the vaccine in the United States. In Canada, BioChem Pharma will be responsible for distributing the vaccine and will retain all exclusive rights to the vaccines. SB Bio will be in charge of worldwide manufacturing except for Canada, marketing for Europe and the rest of the world and will contribute upfront and milestone payments to BioChem Pharma beginning in 1998.

"This strategic alliance holds great opportunity for Biovector Therapeutics. It not only provides validation of our Light-Biovector system but will strengthen our internal pipeline of nasally delivered vaccine programs," said Emile Loria M.D., President and Chief Executive Officer of Biovector. "The choice of SB Bio, a leader in the field of vaccine research enables our systems to be offered worldwide and will add to our plans to provide innovative drug delivery systems that will improve the acceptance, delivery and efficacy of modern vaccines and other therapeutic agents."

This agreement involves one of the many technologies currently under development by Biovector Therapeutics, known as the Light-Biovector system. This synthetic system has the same muco-adhesion properties as the virus and ideally serves as a carrier for the antigens. This allows for an efficient nasal administration. In addition, nasally administered flu vaccine has the potential to create a local immunological barrier and thus, better protection to influenza infection. The first Phase I conducted by BioChem Pharma in Canada involved 60 healthy adult volunteers and showed immune responses both at the systemic (IgG) and mucosal (IgA) levels.

The new antigen obtained from cell-culture based manufacturing processes was developed by BioChem Pharma and will be used in the co-development program. This method, developed by BioChem's laboratories, should allow us to obtain higher quality antigens at a more rapid rate than the ones obtained through egg-based manufacturing processes. Combining the Light-Biovector carrier with the cell-cultured antigens should lead to a new standard for flu vaccines. In the case of vaccine production to prevent infection from the influenza virus, the time required to produce pre-determined quantities of classical vaccines with today's egg-based manufacturing process, results in a planning and manufacturing process that takes one year or longer. The new cell-culture based technology shows promise in its ability to yield a better vaccine in greater volume, which is important in the case of an outbreak of influenza.

SmithKline Beecham Biologicals is located in Rixensart, Belgium, and is the center of all SmithKline Beecham Plc's activities in the fields of vaccine research, development and production. SB Biologicals employs over 600 research scientists who are devoted to discovering and developing cost-effective and more convenient combination vaccine products to prevent infections which cause serious medical problems worldwide. SB produces 700 million doses of vaccines per year. Every second, over 20 doses of SB Bio vaccines are distributed around the world. SmithKline Beecham, one of the world's leading healthcare companies, discovers, develops, manufactures and markets human pharmaceuticals, health-related consumer products and clinical laboratory testing services.

BioChem Pharma is an international biopharmaceutical company dedicated to the research, development and commercialization of innovative products for the prevention, detection and treatment of human diseases. The company's shares are traded on the Montreal and Toronto stock exchanges (BCH) and on NASDAQ National Market (BCHE).

Biovector Therapeutics is a development-stage company that develops and manufactures drug delivery systems to improve the acceptance, delivery and efficacy of modern vaccines and other therapeutic agents. The company's Biovector technology prolongs the effects of therapeutic products, holds patent-extension opportunities for pharmaceuticals and offers a more convenient form of administering drugs. Biovector's lead product candidate is a nasally administered influenza vaccine. The company also is pursing a nasal vaccine for meningococcal meningitis, a vaccine program targeting cytomegalovirus, and delivery of oligonucleotides and DNA compounds.