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31-03-2010: Cangene Corporation reported that it has signed a no-cost modification to extend its botulism antitoxin contract with the Biomedical Advanced Research and Development Authority ("BARDA"). BARDA is the department within the U.S. Department of Health and Human Services ("HHS") that manages the two biodefence-related, stockpiling contracts Cangene has with HHS.
Under the contract, Cangene is required to pursue licensure from the U.S. Food and Drug Administration for use of this product. Both parties have agreed to this two-year extension to allow for additional time to pursue licensure. This modified contract also extends the product delivery schedule to better align it with licensure activities. Cangene was on target to deliver 200,000 doses by May 2011 as specified under the original terms of the contract. This modified contract extends the product delivery schedule out to May 2013, with deliveries spread evenly over the next three contract years. Cangene has delivered approximately half of the contracted doses to date.
"This extension alters the timing of deliveries and will have the effect of spreading the related revenues over the next three years, while also continuing to support licensure activities. Contracts of this nature are always somewhat fluid - we continue to have constructive discussions with BARDA regarding our existing contracts and potential new ones," said Dr. John Langstaff, Cangene's president and CEO.
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