Cangene wins $362 million contract to supply anti-botulism drug to U.S.

New York, May 31 - Cangene said it was awarded a $362 million contract for 200,000 doses of botulinum toxin immune globulin (heptavalent botulism antitoxin) by the U.S. Department of Health and Human Services.

The antitoxin will be available to treat individuals who have been exposed to the bacteria and/or the toxin that cause botulism.

The contract, a five-year development and supply program, is part of Project BioShield.

Cangene will begin to receive payment once it has produced and delivered a quantity of "usable product" to the U.S. Strategic National Stockpile. It expects to meet this milestone in mid to late 2007.

Under the contract, the company must also obtain licensing from the Food and Drug Administration for the product.

Once licensing is received, the company may receive a supplemental payment.

In addition to the base contract, there is a possibility that optional task orders worth up to $234 million may be awarded at the government's discretion. These could cover ongoing testing to support long-term product shelf life, maintaining product manufacturing and additional clinical testing in special populations.

Cangene will manufacture the product at its Winnipeg, Manitoba, facility but will use its U.S. subsidiaries and other U.S. companies for all key subcontracting activities.

Cangene is a biotechnology company based in Winnipeg.

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