INDIA BUSINESS WORLD - August 1^st - August 31^st - 2008

PANACEA BAGS $35-M CONTRACT FROM UNICEF

Panacea Biotec is learnt to have bagged a $35-million drug supply order from Unicef to supply pentavalent vaccines, the first Indian company to get such a contract, reports Khomba Singh. Pentavalent combines four vaccines-Diptheria, Tetanus, Pertussis, Hepatatis B and HIB (whopping cough). In June, the WHO included Panacea Biotec's pentavalent combination vaccines in its list of prequalified drugs, paving the way for the Indian company to supply the combination vaccines to global sourcing agencies. Panacea Biotec officials and Unicef's officials in India were not available for comment. Panacea is the only Indian company to get WHO's nod to supply Pentavalent vaccines. The company is expected to supply the vaccines in the next 18 months. Although the present order is for around $35 million, sources say that Unicef may increase the size of the order depending on its requirement and the manufacturing ability of Panacea. Potentially, Panacea Biotec can earn over $50 million in the next two years. The revenues from the contract are expected to kick in from the third quarter onwards.