GlaxoSmithKline (GSK) and Nabi Biopharmaceuticals (NABI) signed a licensing agreement for a nicotine conjugate vaccine (NicVAX) as well as for the development of a second generation nicotine vaccine. NicVAX is an investigational vaccine for the treatment of nicotine addiction and the prevention of smoking relapse. Earlier in October, the vaccine received a $10 million grant from the National Institute on Drug Abuse.

As per the agreement, Nabi will get an upfront payment of $40 million and is eligible to receive more than $500 million (together with upfront payment) as option fees and milestones for the vaccine, NicVAX, and follow-on nicotine vaccines. Nabi has the potential to receive double-digit royalties from sales if the product is commercialized. GlaxoSmithKline will have an option to exclusively in-license NicVAX on a worldwide basis and a license to develop follow-on next-generation nicotine vaccines using Nabi's intellectual property together with GSK's own technology.

NicVAX is currently

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Nabi Biopharmaceuticals is a biotech company focused on developing products that encompass two main areas of treatment; nicotine addiction, and bacterial infections.

NicVAX® is Nabi’s weapon against nicotine addiction/relapse, and as its name suggests, comes in vaccination form. Nicotine is absorbed through the lungs into the blood, where it is subsequently carried to the brain; more specifically, to nicotine receptors in the brain. This results in the dispersal of natural stimulants, and produces the desirable sensation that smokers find addicting. NicVAX® stimulates the system into producing nicotine antibodies, which in turn bond with any nicotine molecules in the bloodstream, and prevents them from reaching the brain.

StaphVAX® is a vaccination developed by Nabi that produces antibodies which are critical in fighting certain bacterial infections; most commonly the infection known as S. aureus (also known as Golden Staph, the most common of the Staphylococcus infections). In laymen’s terms, chemicals found

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Lots of Israeli companies reporting earnings. Here are some highlights: Perrigo (PRGO): Tightened up 2008 guidance higher and beat revenues projections. Earnings release here. Early look at the stock is that investors aren’t impressed. See our recent commentary on PRGO’s generic nicotine gum. Teva Pharmaceuticals (TEVA): Earnings report here. Quarter over quarter growth looks to be 24% and profit down from CoGenesys charge. RRSat (RRST): Smacked yesterday after an earnings release. The 20% drop came after putting up pretty good top lines numbers. Margins came down quite a bit. Alvarion (ALVR): Stock popped after the wireless backhaul firm put up pretty good revenue numbers and a narrower loss. The stock jumped 15%. Earnings report here. See our analysis of the recent turbulence in the wireless market. Ness Technologies (NSTC): Revenues up 27% year-over-year and ...