CSL Seqirus, the vaccine unit of Australian biotech CSL, has signed a pact to provide Saudi Arabia with cell-based influenza shots and help establish its production in-country. The move forms part of a local effort to boost domestic manufacturing and pandemic preparedness in the oil-rich kingdom.
The manufacturing accord comes just two days after CSL announced it was delaying plans to spin off the unit amid a sharp decline in vaccination rates in the U.S., plus ongoing shifts in federal vaccine policy.
Under the terms of the deal with the Saudi Ministry of Health, Seqirus will provide both seasonal and pandemic cell-based influenza vaccines, according to an Oct. 30 press release.
The vaccine specialist will also work with domestic drugmaker Vaccine Industrial Company to set up localized production at its plant in the planned industrial hub Sudair City, which is around 75 miles north of the Saudi Arabian capital, Riyadh.
The financial terms of the collaboration were not disclosed. Seqirus said it expects the partners to "establish pandemic preparedness" by next year and supply cell-based flu vaccines in Saudi Arabia for the 2026/27 flu season.
As part of the agreement, Seqirus is also expected to help Saudi Arabia establish "pre-pandemic vaccine stockpiles" for high-risk populations, as well as ink an advance purchase agreement with the country to cover pandemic immunizations for the broader population.
Cell-based influenza vaccine production is considered a more efficient and scalable method of manufacturing as it reduces reliance on large volumes of critical materials, the company said.
“Seasonal influenza has a significant impact on families, the community and the health system in Saudi Arabia,” Lorna Meldrum, CSL's VP of commercial operations for international & pandemic response, said in the company's press release.
“Through this collaboration," she continued, "we will leverage the best of our differentiated vaccine portfolio with the strength of Vaccine Industrial Company’s local manufacturing expertise and networks to establish the kingdom as a regional leader in preventing seasonal influenza.”
Earlier this year, CSL announced plans to spin off CSL Seqirus as part of a companywide reorganization that looks to trim thousands of jobs. The cost cuts, the company said at the time, are designed to save CSL $500 million to $550 million progressively over the next three years.
But at the company's general meeting Tuesday, CSL's chairman revealed that the company will need to revisit the timeline for the spinoff. CSL is exercising caution so as not to devalue Seqirus by attempting the move amid "heightened volatility in the current U.S. influenza vaccine market," he said.