Solvay Pharmaceuticals Receives Major Pandemic Flu Vaccine Development Contract

ATLANTA, May 4, 2006 – Governor Sonny Perdue today congratulated Solvay Pharmaceuticals, Inc. of Marietta for receiving a major contract with the U.S. Department of Health and Human Services (HHS) for development of a pandemic flu vaccine. HHS Secretary Mike Leavitt made the announcement today in Washington, D.C.
"We have identified biotech as a strategic industry in Georgia, and today's announcement solidifies our state as a major player in this critical field," said Governor Sonny Perdue. "The expertise of Solvay Pharmaceuticals and the state of Georgia's investment in the life sciences industry has proved to be a winning combination."

More than $1 billion was awarded to accelerate development and production of new technologies for influenza vaccines within the U.S. These five contracts support the advanced development of cell-based production technologies for influenza vaccines and will help to modernize and strengthen the nation's influenza vaccine production by creating an alternative to producing influenza vaccines in eggs. These funds are part of $3.3 billion proposed by President George Bush and appropriated by Congress to HHS for fiscal year 2006 to help the nation prepare for a pandemic.

'Today, we're taking a step closer to preparedness by investing more than $1 billion to develop vaccines more quickly and to produce them here in the United States,' Secretary Leavitt said. 'We have the opportunity to be the first generation that prepares for pandemic. Our current capacity of egg-based influenza vaccine production is not sufficient to meet increased demands during an emergency. Accelerating the development of this vaccine technology and creating domestic capacity are critical to our preparedness efforts.'

The five-year contract received by Solvay Pharmaceuticals is the largest of the five awarded today -- $298.59 million.

'Today's announcement marks an important step forward in bringing our cell-based influenza vaccine technology to the U.S.,' said Laurence Downey, M.D., president and CEO of Solvay Pharmaceuticals, Inc. 'Solvay Pharmaceuticals' 50-year heritage in the global influenza vaccine business and 15 years of experience in researching and developing cell-based influenza vaccines uniquely position us to fulfill the requirements of this contract. We appreciate the support of the State of Georgia and our Congressional delegation in our pursuit of this contract.'

This year has been successful for Georgia's life sciences industry. The state's continued efforts in building a thriving life sciences community helped move it up to seventh in the 2006 Ernst & Young's annual ranking of biotech centers. After being ranked eighth in 2005, Georgia moved past New York in the 2006 rankings. The rankings are based on the number of biotechnology companies that are operating in each state.

'Our jump in the rankings is another indication that Georgia has the right combination of resources, infrastructure and talent to make our state a leader in this important industry sector,' said Governor Perdue. 'We are investing heavily in life sciences, and that is paying off by attracting new companies to the state and allowing our existing Georgia companies to grow and create jobs for Georgians.'

In January, Governor Perdue announced that Altea Therapeutics is locating its new headquarters in Atlanta, retaining more than 70 high-paying jobs in Georgia and allowing for company expansion that is expected over the next several years. Altea is the first project to receive a loan from Georgia's Life Sciences Facilities Fund (LSFF), a revolving-loan fund that allows the state to attract bio/life sciences projects. Governor Perdue included an additional $5 million to the LSFF in his FY2007 budget recommendation

The state has also responded to a U.S. Department of Homeland Security request for proposals on locating a new National Agro- and Bio-Defense Facility (NBAF). In the proposal, the state touted its existing resources in the life sciences industry as an advantage in making the facility as effective and efficient as possible.

An approximately 500,000 square-foot building would house the NBAF and employ an estimated 500 federal employees. A Carl Vinson Institute of Government (CVIOG) analysis estimates the 20-year impact at $1.5 billion to $2.5 billion in wages/salaries and an estimated $3.5 billion to $6 billion total overall economic impact. Construction of the facility alone would create an estimated 1,000 jobs.

'We have identified life sciences as a strategic industry for the state because of the high-paying, sustainable jobs these companies provide and the important contributions these facilities make to our society,' said Georgia Department of Economic Development Commissioner Craig Lesser. 'We have a team concept here in Georgia that leverages our respected academic institutions, significant resources at all levels of government, and an incredible commitment from our existing life sciences companies. We are all working together to grow this industry, and this ranking helps to validate all of our hard work.'

EDITOR'S NOTE: For a copy of the Ernst & Young report entitled 'Beyond Borders: Global Biotechnology Report 2006,' please contact Bert Brantley at the Georgia Department of Economic Development at 404-962-4830.