BioWorld International Correspondent

PARIS - Vivalis, a specialist in the cultivation of stem cells from transgenic animals, entered a collaboration agreement with the animal health company Merial providing for Merial to test the feasibility of using the French company's stem cell lines in the production of its avian vaccines.

Merial, a joint venture between Merck and Co. Inc. and Aventis SA, produces a range of pharmaceuticals and vaccines for animals, and its worldwide sales totaled more than $1.6 billion in 2001. According to the executive director of Merial Biological Development, Huw Hughes, its evaluation of Vivalis' avian stem cell lines will seek to "determine how they may benefit and improve our production process and enable us to provide the innovative new products we have identified more quickly." Financial terms of the deal were not disclosed.

Vivalis concluded a similar research agreement in September with Lyon-based Aventis Pasteur, another Aventis unit, which is evaluating the possibility of using Vivalis' avian stem cell lines in its vaccine production.

The CEO of Vivalis, Frank Grimaud, told BioWorld International that this research was very advanced and that other companies were conducting similar evaluations of Vivalis cell lines. "We are more than hopeful that one or several of these companies will decide to use our cell lines for the production of their vaccines," he said, adding that he expected to be able to announce the conclusion of a firm agreement to that effect in the near term.

Nantes-based Vivalis has developed a technology for cultivating embryonic stem cells in transgenic chickens and rabbits, and uses the technology to produce therapeutic recombinant proteins (such as antibodies, peptides and cytokines) in the eggs of genetically modified chickens, as well as stem cells, primary cells and cell lines for the pharmaceutical industry, in particular for vaccine production.

In the area of recombinant proteins, the services it offers its customers cover the whole development cycle, from the insertion of the target gene through to industrial expression and purification of the protein. Vivalis said its technology meets the biopharmaceutical industry's current requirements for the large-scale production of complex proteins.

Vivalis also was closely involved in the first successful cloning of a rabbit by France's National Institute for Agronomic Research (INRA), which was unveiled last March. It has an option to acquire an exclusive license from INRA to the application of its cloning technology in animal models for research purposes and for certain therapeutic applications.

In addition, Grimaud confirmed that Vivalis was nearing closure of a private financing.