Melbourne drug development and manufacturing company IDT Australia has revealed it will be paid $11.44 million by the federal government to make ready its sterile manufacturing facilities at Boronia in Melbourne for the potential production of mRNA vaccines.
The company told investors it had already received $7.5 million for the work done so far and for finalising an agreement with the Department of Health.
“The remaining activities over FY22 relating to IDT’s sterile facility recommissioning and sterile readiness are nearing completion.
“At the conclusion of these activities IDT will maintain the facility in a sterile state, exclusively for Health.
“During the exclusivity period Health at its discretion can nominate a Covid-19 vaccine, in which case ITD and (the) relevant vaccine company would need to agree on commercial terms for the manufacture of the specific Covid-19 vaccine.”
Last week IDT was forced to detail its announcements to the stock exchange regarding a ‘sterile readiness agreement’ finalised between IDT and the federal Department of Health to bring the company’s sterile manufacturing facility into a state of readiness.
This agreement provides for a period of exclusivity with Canberra either lasting four months or until a supply agreement is executed with the government to provide Covid-19 vaccine services.
The company’s latest update details the scope, exclusivity and termination arrangements and fees contained in the agreement.
Despite the payment, there is no obligation on Health to utilise ITD’s facilities.
Health may terminate the agreement at any time with ten days written notice, or if IDT fails to reach agreed milestones of has failed to remedy a breach of the agreement.
IDT has also had extended discussions to Monash University and the Victorian government regarding the university’s Monash Institute of Pharmaceutical Sciences mRNA receptor binding protein vaccine candidate.
Picture: IDT Australia/sterile manufacturing facility
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