why 2 negotiators on standby?????, page-6

crucell in licence deal to develop aids vaccine UPDATE 1-Crucell in licence deal to develop AIDS vaccine
September 14, 2004 5:06am ET (Reuters)

(Adds detail, analyst comment, share price)

AMSTERDAM, Sept 14 (Reuters) - Dutch biotechnology company Crucell has signed an exclusive licence agreement to develop an AIDS vaccine based on its technology, the firm said on Tuesday.

"Crucell expects to receive development funding and substantial upfront, annual and milestone payments, as well as royalties on future HIV vaccine sales," Crucell said in a statement.

The firm did not give figures, but ABN AMRO biotechnology analyst Adrian Howd said Crucell was likely to receive an upfront payment of 3 to 5 million euros ($3.7 to $6.1 million) from the deal with the International AIDS Vaccine Initiative (IAVI).

"While Crucell continues to deliver positive news flow, at this stage, the current share price discounts much of this progress," Howd said in a note to investors, reiterating a "hold" rating on the stock.

Crucell shares were up almost 2 percent at 6.79 euros by 0850 GMT, while Amsterdam's main AEX index fell 0.3 percent. The shares have out-performed the AEX by more than 40 percent since the beginning of the year.

Crucell said the deal was based on its AdVac technology that makes use of a common cold virus to deliver genetic material into the human body for to trigger an immune system response.

IAVI is a not-for-profit organisation working to accelerate the development of an HIV vaccine that is supported by, among others, the Bill & Melinda Gates Foundation, the World Bank and the European Union.