GlaxoSmithKline, which has a location in Collegeville, has sold the rights to two of its vaccines to a Denmark biotechnology company in a deal valued at up to $1.1 billion, writes John George for the Philadelphia Business Journal.

Bavarian Nordic bought the rights to a vaccine used to prevent rabies called Rabipur, and a vaccine used to prevent tick-borne encephalitis, Encepur. The vaccines were acquired from Novartis four years ago.

GSK will receive around $336 million in an upfront payment and potential milestone payments of $552.6 million. The deal also calls for GSK to receive additional proceeds from the inventory sale for the duration of the supply arrangements.

The value of inventory is expected to be $117.5 million at the transaction’s closing date. The milestone payments are related to the successful transfer of technology, marketing authorization transfers, and the fulfillment of supply commitments by GSK until the new owner gets approval to manufacture the vaccines.

According to GSK officials, the divestiture of the vaccines supports the company’s strategic “intent to increase focus and reinvest in growth assets, innovation and a simplified supply chain in its vaccines business.”

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