VaxGen Hits Anthrax Jackpot

There are risks, of course. VaxGen has to produce and deliver usable anthrax vaccine to the government before it gets paid. (Interestingly, the vaccine does not have to be fully FDA approved, that will come later.) And this contract, while lucrative, has finite terms, which means the bulk of the revenue stream ends in 2007.

VaxGen may sign follow-on contracts with the government for replenishment stockpiles, and once the vaccine is approved, it will be free to negotiate new supply contracts with the U.S. military, state and local governments or foreign countries.

Finally, VaxGen was delisted from the Nasdaq in August for failing to file financial documents in a timely manner due to changes being made in the company's revenue-recognition accounting. On Friday, VaxGen executives said re-auditing financial statements for the past three years will be filed in December, which should allow the company to regain Nasdaq listing in January.