IHI to Set Up JV to Make Flu Vaccine

Tokyo, Jan. 26 (Jiji Press)--Major heavy machinery maker IHI Corp. <7013> and bioventure UMN Pharma Inc. said Tuesday that they will establish a joint venture in April to produce drug substance for influenza vaccines.

The joint firm, to be located in Akita, northern Japan, will have
capital of 1.5 billion yen, of which 50.25 pct will be put up by Akita-based
UMN Pharma and the rest by IHI. A new plant will be built in the city in
March 2011.
The joint company will start to sell a vaccine for the highly
pathogenic H5N1 flu strain in 2012. With the use of a new cell culture
method, the vaccine can be produced in only two months, compared with some
six months required under conventional methods.
The company will release a vaccine for seasonal flu in 2014.
IHI and UMN Pharma hope that sales at the joint venture will reach
8.5 billion yen in fiscal 2016.
To strengthen the two companies' partnership, IHI will invest 500
million yen in UMN Pharma by the end of this month.