Panacea Biotec Ltd, the second largest vaccine producer in India, has taken a 10 per cent strategic stake in the UK based Cambridge Biostability Limited (CBL) for a total consideration of £1.935m.

CBL is UK's pioneering developer of temperature-stable liquid vaccines. As per a JV agreement to this effect, Rajesh Jain, joint managing director of Panacea Biotec, has been appointed to the Board of CBL as non-executive director.

CBL also signed a long term licensing agreement with Panacea Biotec that could provide significant gross royalty income to CBL over the period. Under the agreement, Panacea Biotec is to in-license CBL's stable liquid technology to develop, produce and market a stable liquid version of pentavalent and other combination vaccines for the treatment of diphtheria, tetanus, pertussis (whooping cough), hepatitis B and haemophilus influenza B, a major cause of bacterial meningitis and pneumonia in children. This product will be unique in that it will not require storage under refrigeration or reconstitution before use.

A press release said the strategic investment in Cambridge Biostability gives Panacea Biotec more insight into CBL's proprietary technology, its ongoing development and application in other vaccines and fields. The size of the worldwide market for the above vaccines is estimated to be in the region of 300 million doses per annum.

David Stone, CBL's chief executive said: "Panacea Biotec is one of the top biotechnology companies in India, with particular expertise in the field of vaccines. We are delighted to have signed this JV with such a leading force in vaccine development. Mr. Rajesh Jain brings enormous experience to the role and we are very pleased to be welcoming him to our Board as non-executive director. The licensing agreement is a landmark deal for CBL, and demonstrates the commercial potential of our stable liquid technology platform"

John Lambert, CBL's chairman added: "As well as being very exciting news for CBL, more importantly, it also brings the reality of having a stable liquid pentavalent vaccine out in the field one step closer - available for use in remote areas, at extreme temperatures and no requirement for the complex cold chain. This will greatly increase the number of children who will have access to these life saving vaccinations and save countless numbers of lives."

Rajesh Jain, joint managing director, Panacea Biotec said "Our joint venture and strategic investment with Cambridge Biostability strengthens our relationship with them and gives Panacea Biotec more insight into the development and application of thermostabilisation technology. CBL's stable liquid technology removes the need for cold chain, which currently costs around USD 200 million a year. It also extends the shelf life of vaccines thereby saving around USD100 million in waste vaccines every year. The launch of a stable liquid pentavalent vaccine will be a significant milestone and growth driver for both partners."