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GSK surges on entering into an agreement to develop six-in-one combination paediatric vaccine

29 Jan 2013 Evaluate

GlaxoSmithKline Pharmaceuticals (GSK) is currently trading at Rs. 2070.65, up by 36.45 points or 1.79% from its previous closing of Rs. 2034.20 on the BSE.

The scrip opened at Rs. 2042.05 and has touched a high and low of Rs. 2080.00 and Rs. 2042.05 respectively. So far 910 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 2338.00 on 30-Mar-2012 and a 52 week low of Rs. 1916.00 on 04-Jul-2012.

Last one week high and low of the scrip stood at Rs. 2176.90 and Rs. 2025.00 respectively. The current market cap of the company is Rs. 17,539 crore.

The promoters holding in the company stood at 50.67% while Institutions and Non-Institutions held 34.02% and 15.32% respectively.

GSK has entered into an agreement to form a 50:50 joint venture (JV) with a leading Indian vaccines company, Biological E, for the early stage research and development of a six-in-one combination paediatric vaccine. This vaccine will help to protect children in India and other developing countries from polio and other infectious diseases. 

The JV will bear the development costs for the candidate vaccine, which is expected to enter phase 1 development in the next two years. A small initial cash investment will be made by both companies to cover start-up costs for the JV and subsequent development costs will be split equally.

Besides, if approved, the vaccine, which would combine GSK’s injectable polio vaccine (IPV) and Biological E’s pentavalent vaccine for diphtheria, tetanus, whooping cough (whole cell pertussis), hepatitis B, and Haemophilus influenzae type b, could be the first of its kind. The vaccine would enable fewer injections for children thereby improving compliance in immunization schedules. 

Further, this partnership also reinforces the commitment of both companies to support the World Health Organization’s (WHO) global polio eradication programme.      

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