Media release from Datamonitor

Hedwig Kresse, head of vaccines & infectious diseases at independent market analyst Datamonitor comments.

"Abbott's decision to sell off the company's flu vaccine business does not come as a surprise, as the company is a niche player without critical mass in the increasingly competitive seasonal flu vaccine market.

"The most attractive selling point is Abbott's established position in the lucrative Russian influenza vaccine market through its alliance with Petrovax Pharm, which could gain a potential buyer easy access to one of the key emerging markets for vaccines.

"Another interesting proposition is Abbott's cell-based manufacturing technology; however, the company has lost its initial advantage in this segment through development delays and the approval of competitive products in this segment such as Novartis' Optaflu. Considering the low tolerance of the increasingly competitive influenza vaccines market for high-priced vaccines, Datamonitor has general doubts regarding the commercial potential of cell-based seasonal influenza vaccines.

"The list of potential buyers could include several companies already established in the flu vaccine space.

"Already successfully marketing its influenza portfolio in several Asian countries and looking to further increase its emerging market footprint in vaccines, GSK could seize this opportunity to gain an entry route to the Russian market.

"In addition, Abbott's late-stage cell-based program may be interesting for GSK, which is lagging behind other flu vaccine players with regards to cell-based manufacturing. Another scenario could see a smaller player such as AstraZeneca/MedImmune combine Abbott's flu business with their own influenza unit to achieve a critical mass in the sector, which is dominated by large vaccine providers."