Subject: Chiron and Ciba-Geigy Form Venture For Genetically Engineered Vaccines
Date: Published: 10/7/86 63 lines
Source:  Wall Street Journal.  Copyright Dow Jones & Co. Inc. 

   Chiron and Ciba-Geigy Form Venture
   For Genetically Engineered Vaccines
    ---
   By Marilyn Chase
   Staff Reporter of The Wall Street Journal

   EMERYVILLE, Calif. -- Chiron Corp. and Ciba-Geigy Ltd.
said they formed a 50-50 joint venture to develop and
commercialize a line of genetically engineered vaccines
against infectious diseases.
   Potential products include vaccines against acquired
immune deficiency syndrome, oral and genital herpes,
hepatitis A, hepatitis non-A, hepatitis non-B, malaria and
cytomegalovirus, they said.
   Chiron, a biotechnology concern, and the Basel,
Switzerland-based pharmaceutical company are staking a broad
claim to the vaccine market at a time when producers of
conventional vaccines are curtailing their involvement
because of liability risks.
   The move follows recent approval by the U. S. Food and Drug
Administration of a recombinant hepatitis-B vaccine jointly
developed by Chiron and Merck & Co., Rahway, N. J. It was the
first vaccine produced by gene-splicing to receive U. S. 
marketing approval.
   Genetically engineered vaccines prevent disease by using a
synthetic copy of the protein coat of a virus, thus tricking
the body's immune system into mounting a protective response
just as if a real invader had attacked it.  Such vaccines
avoid use of any live viruses, and thereby cut the risk of
causing the diseases they seek to prevent.
   "These vaccines should be pristine," Chiron president
Edward Penhoet said in an interview.  "They're very clean and
shouldn't have any contaminating particles."  Based on the
company's experience with recombinant hepatitis-B vaccine, he
said it would take at least four to five years to develop a
product.
   Chiron will contribute gene-splicing technology to the
venture, while Ciba-Geigy will bring an undisclosed amount of
cash plus its technology in the field of general immune
boosters.  The venture, which will be based in Emeryville,
marks Ciba-Geigy's first foray into vaccine work.  The
venture's work on an AIDS vaccine brings it into competition
with other gene-splicing companies including Genentech Inc.,
San Francisco, and the Genetic Systems unit of Bristol-Myers
Co., New York.  However, Mr. Penhoet claimed Chiron's
commitment to prevention of infectious disease via a broad
line of recombinant vaccines dominates the industry.
   Chiron chairman William J. Rutter said vaccines against
adult diseases represent "a growing commercial opportunity
for Chiron."  And Mr. Penhoet added:  "Chiron's bias is that
preventative health care is the wave of the future.  It goes
along with society's interest in vitamins, running and eating
healthy foods.  Vaccines should be an important part of that."

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