J&J wants into vaccine bizAMSTERDAM (AP) -- U.S. health care products maker Johnson & Johnson Inc. has bought an 18 percent stake in Dutch biotechnology company Crucell NV for euro301.8 million ($440 million) in hopes to develop a universal flu vaccine, the companies said Monday.
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In a joint statement, the companies said their immediate focus would be on developing "monoclonal antibodies" -- which bind to a target protein, alerting the body's own immune system to attack it.
Crucell was awarded grants worth up to $69 million by the U.S. government in August to develop its range of monoclonal antibodies for influenza, which Crucell says have shown early promise in fighting "a wide range" of seasonal and pandemic flu viruses.
In fact the company claims the antibodies can fight any influenza, including swine flu and bird flu, and including those flu strains resistant to Tamiflu -- the medicine currently most often used to slow their progression.
In the long term, Crucell and Johnson & Johnson said they wish to develop a universal flu vaccine. They also hope to use similar antibodies to fight other diseases, including rabies.
"Each year, vaccines must be formulated to address the current influenza strain," said Paul Stoffels, head of Johnson & Johnson research. "A universal antibody or vaccine that protects against a broad range of strains would be an important advance in helping doctors and nurses manage the annual influenza season and control acute epidemic and pandemic outbreaks."
Crucell said the shares it is selling to Johnson & Johnson are newly created.
Shares in Crucell were up 3 percent at euro16.43 in midday trading in Amsterdam.
Johnson & Johnson said the purchase would reduce its per-share earnings by $0.02 - $0.04 in 2009.
Under the deal, Crucell will retain the right to market products the companies develop jointly in Europe, while Johnson & Johnson will market them in the rest of the world.
Earlier this year Wyeth entered talks to buy Crucell for $1.35 billion, but it canceled the negotiations after Wyeth itself was bought for $68 billion by Pfizer Inc.
The agreement with Johnson & Johnson specifies that the U.S. company won't buy any more of Crucell's shares for 3 years without Crucell's consent.