Nobilon International, part of Akzo Nobel's Pharma group, has entered into a licensing agreement with Australian pharmaceutical development company BioDiem Ltd.

Under the agreement, Nobilon - which was set up by Akzo Nobel in 2003 as a strategic move into the human vaccines market - will pay a total of up to USD 8 million (including
milestone payments over the next few years) for exclusive rights to manufacture, market and sell BioDiem's intranasal influenza vaccine worldwide, with the exception of Russia, the CIS countries and North America, where BioDiem retains the rights to market and sell the vaccine. Sales and marketing rights in Japan will be shared, subject to future agreement between BioDiem and Nobilon. Royalties based on sales are payable to BioDiem, the company said in a release.

The agreement gives Nobilon access to BioDiem's technological expertise in influenza vaccines and will enable the development of a new generation of flu vaccines based on cell-culture technology that offer a patient friendly method of administration. The vaccine is not expected on the market until around 2010.

Speaking about the tie-up between the two companies, Nobilon director Bram van Dijck, said: "The BioDiem live attenuated influenza vaccine technology has a number of important features that we can capitalize on to develop a better flu vaccine that will address the need for broader protection against influenza and ensure a more flexible and efficient supply."

Tom Williams, BioDiem's MD, added: "We are delighted to have Nobilon as a partner for our novel flu vaccine as the fit is excellent and provides both companies with a strategic position in a high volume market which is growing strongly."