Transgene Biotek to launch meningitis vaccine soon

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Transgene Biotek to launch meningitis vaccine soon

Transgene Biotek is a small cap biotech company. Currently having a product line which includes biogenerics, vaccines and cancer drugs, CMD of Transgene Biotek, KK Rao says that the company has big prospects going forward.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Transgene Biote See previous management interviews See what other Experts & Brokerages are saying about Transgene Biote BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Transgene Biotek is a small cap biotech company that has a product line which includes biogenerics, vaccines and cancer drugs. CMD of Transgene Biotek , KK Rao says that the company has big prospects going forward.

While there is not too much in terms of revenues just yet, Rs 150 crore is the market cap, and there are a lot of hope that things will pan out on the vaccine front.

Excerpts from CNBC - TV18's exclusive interview with  KK Rao:

Q: Your meningitis vaccine has been much spoken about, could you update us on what exactly is happening there and when one can expect a launch or closer to market?

A: We have a very interesting business model. But before we go any further on that, we have completed the 52 week Phase III double blind study in the two African countries only recently, and we have got the US IEC approval also very recently. We are now making the preparations to launch this vaccine during the current financial year, subject to getting the regulatory approvals.

Q: Have you partnered with anybody for distribution of this vaccine and what could be your potential revenues stream, how big is this market potentially?

A: In terms of marketing and distribution, we are talking about two different markets - one for the developed countries. To that extent, we are already in serious discussion with global pharma majors to distribute the meningitis vaccine in the developed countries. 

The underdeveloped countries are in Africa particularly and also in other developing countries we are gong to distribute directly to the governments and the agencies that are in direct contact with the governments. This is apart from directly talking to WHO sponsored agencies such as UNESCO, UNICEF.

Q: Would you be able to give a perspective on what these 250 million dossiers mean in money terms?

A: When you come to money terms, it will be wrong to assume that all the 250 million dossiers will be required or acquired simply because there is insufficient money as per the WHO's admission due to lack to sufficient amount of money that is available to buy and distribute this vaccine.

But it is sufficient to say that atleast there will be annual requirement of 40-50 million dossiers every year. On an average, the cost of for a quarterly valid vaccine that we are manufacturing will be around USD 1.5 to USD 2.

Q: We believe that there were some differences in terms of revues sharing with JN International Medical. Has that been sorted out and how will the revenues and profits flow now?

A: There was some unfortunate development with JN International some time ago on the terms of the original agreement. However, we have been able to sort it out quite amicably. All the distribution and the revenues that are going to be generated from marketing of this vaccine, as far as Transgene is concerned, will be entirely through the accounts of Transgene alone without having to share with JNI. So the profits and revenues ought to be in the books of transit only and not to be shared.

Q: Right now there is not too much that you have by way of revenue stream, by when do you see the first product being launched from your company and significant revenues flowing in from which quarter?

A: Frankly speaking, the significant revenues were expected during the first quarter of 2007 and 2008. The reasons why I am saying that is not on account of Meningitis vaccine alone, but the major development that has taken place of the company which is the oral delivery of insulin which has completed pre clinical trials giving tremendous results much more exciting than we ever envisaged in terms of sustained hypoglycemic effect lasting for about 24 hours which in simple terms the diabetic population is divided into two segments insulin depended and non-insulin depended diabetes.

10% of the diabetic population only on insulin depended diabetics. Now taking this 24 hour hypoglycemic effect that we have been able to develop, we are not talking about simply to deliver this vaccine or deliver this oral insulin to the diabetic population alone, but to the remaining 90% of the diabetic population too. I think that is what has excited the two global major pharma majors with whom we are having a dialogue at this point of time.