Acambis wins smallpox order

November 29, 2001 Posted: 0836 GMT

LONDON (CNN) -- Acambis, the maker of smallpox vaccines, soared on Thursday after the U.S. ordered 155 million doses in its fight against potential bioterror attacks.

Its stock rose 25 percent to 305 pence in early London trading. Acambis, based in Cambridge, England, and U.S.-based Baxter International beat out rival bids from drug giants GlaxoSmithKline (GSK) and Merck (MRK: down $1.24 to $65.35, Research, Estimates) .

The U.S. government is taking precautionary measures against any bioterror attacks following the September 11 hijackings and five deaths from inhaled anthrax. It hopes to stockpile enough Smallpox doses to immunise each American if needed.

The contract is worth $428 million with delivery expected late next year. The cost per dose is $2.76.

"We are pleased to be able to assist in the U.S. government's campaign to combat the threat of bioterrorism," Acambis Cehief Exceutive John Brown said.

The U.S. has a previous order from Acambis (ACM) for 54 million doses and is testing whether it can dilute older vaccine stocks. Once completed, the nation's stockpile will include 286 million smallpox vaccine doses.

Smallpox is highly contagious and kills about 30 percent of its victims and leaves others disfigured. There is no effective  treatment once someone falls ill, but giving a vaccine in the days immediately following exposure can prevent illness.

The illness was declared eradicated worldwide in 1980, marking one of the greatest successes in modern medicine.