VaxGen, Inc. and EndoBiologics International Corp. have formed a collaboration to pursue research of a vaccine against Meningitis serogroup B, using technology developed by EndoBiologics. VaxGen intends to fund proof-of-concept studies during the next 12 months and has an exclusive option to continue product development if the studies yield promising results.

Meningitis B (Neisseria meningitidis serogroup B) is a life-threatening bacterial infection most common among young children. The disease is nearly always fatal if left untreated and 10-15% fatal even if treated with antibiotics. Of those who recover from the disease, 10-20% experience permanent hearing loss, mental retardation or loss of limbs. There is no licensed vaccine that has shown protection against a wide range of Meningitis B strains.

"A great deal of work remains to be done and there is no assurance of success, but having carefully evaluated various approaches to developing a Meningitis B vaccine, VaxGen believes that EndoBiologics has developed a promising technology. If this approach ultimately results in a vaccine approved for commercial use, we believe it would be appropriate for routine paediatric immunization," Lance K. Gordon, VaxGen's president and CEO was quoted as saying.

The initial proof-of-concept phase will be undertaken jointly by EndoBiologics and VaxGen, with VaxGen providing research funding to EndoBiologics and conducting pre-clinical testing of the vaccine candidate.

If VaxGen exercises its option to continue developing the vaccine candidate after the proof-of-concept studies, the company would provide milestone payments and additional research funding to EndoBiologics. VaxGen also would provide EndoBiologics with royalty and additional milestone payments upon regulatory approval and commercial sale, if those events are forthcoming.

EndoBiologics' production method uses the organism Dictyostelium discoideum as a biological mechanism for producing a potential vaccine antigen from lipooligosaccharide (LOS).

VaxGen, Inc. is a biopharmaceutical company engaged in the development, manufacture and commercialization of biologic products for the prevention and treatment of human infectious disease. Based in Brisbane, California, the company is developing vaccines against anthrax, smallpox and Meningitis B.