US cuts Acambis vaccine order

CAMBRIDGE-BASED drug maker Acambis will only break even in the second half of this year after the US government cancelled an expected order of 26.5m doses of its smallpox vaccine.

The contract was part of a 209m dosage fast-track order the US placed last year for Acambis' ACAM200 vaccine as part of the government's Strategic National Stockpile.

Chief executive Gordon Cameron today said that the loss of the order will reduce revenues for the year to between £85m and £90m.

Acambis shares tumbled to a 2004 low of 297 1/2p, down 26 1/2p.

Analysts say the company will now only break even in the second half, meaning full year pre-tax profits will be £26.5m - about the amount made in the first half. Profits last year were £35.5m on sales of £169m.

The US Food and Drug Administration has, however, lifted the hold on phase three trials of ACAM200, five months after concerns surfaced over heart-related side effects.

Acambis expects to file a licence application for the vaccine towards the end of next year.

Three other Western countries have placed orders worth a total of £6m for the vaccine.