Leading Nasal Spray Vaccine Originally Funded by Calvert
Calvert was an Early Investor in FluMist®, a Nasal Spray Widely Used to Inoculate Children against the H1N1 Flu Virus
1/7/2010
The 2009 outbreak of the H1N1 virus—or swine flu—generated not only widespread concern but also global action. The World Health Organization declared a global flu pandemic after cases of swine flu were first reported in Mexico in April 2009 and then surfaced in 74 other countries. In late October 2009, the United States declared the H1N1 influenza pandemic a national emergency, requiring a national vaccination initiative.
A New Approach to Inoculation
FluMist is a nasal-mist, flu vaccine spray that has been on the front line of this defense effort. It is one of the most widely used forms of vaccination and has proved instrumental in combating the H1N1 virus in children and young adults around the world. Calvert is pleased to have played a role in supporting the development of FluMist through venture capital funding.
Calvert Special Equities Program
Calvert has long been an investor in entrepreneurial, for-profit companies working on innovative solutions to pressing environmental and social problems. Started in 1992, the Calvert Special Equities Program has provided venture capital to companies across a range of areas, including alternative energy, microfinance, education, bio-pharmaceuticals, and agriculture. Calvert believes that these companies provide tangible societal benefits, along with attractive financial potential for Calvert investors.
A Promising Biopharmaceutical Company
In 1995, Calvert saw potential in Aviron, a young biopharmaceutical company headquartered in Mountain View, California. Focused on disease prevention, Aviron was looking for treatments for a wide range of viral respiratory infections and alternatives to needle-injection vaccinations.
Aviron was the type of company that exemplified Calvert’s principles, combining a deep concern for public health and safety with the drive to develop profitable technologies to combat infectious—and potentially epidemic—respiratory diseases like influenza.
Aviron’s portfolio included a large number of early-stage, proprietary vaccines for influenza, parainfluenza, and the herpes simplex virus. Aviron’s use of weakened “live viruses” for vaccines was considered a breakthrough in that it allowed for nasal inoculations, whereas traditional flu shots had to be administered by needle. One of Aviron’s most promising products was FluMist®, a nasal-mist, flu vaccine spray especially useful for the pediatric market, where flu shots were rarely administered.
Investing in Global Solutions
In November 1995, Calvert Social Investment Fund (CSIF) Balanced Portfolio made an initial $500,000 investment in Aviron. With that money, the company expanded its testing and development of FluMist and other vaccine technologies. A year later, Aviron went public with a successful initial public offering. Throughout 1997 and 1998, with continuing Calvert support, Aviron made significant strides in proving the efficacy of FluMist and other vaccines. In 1998, the successful results of a series of late-stage clinical trials using FluMist with children and working adults were reported in The New England Journal of Medicine.
In 2002, MedImmune, Inc.,1 an established, integrated biotechnology company, recognized a potential strategic fit with Aviron and acquired the company, creating a premier biotech company. Both companies viewed the merger as a good synergistic fit with Aviron’s vaccine technologies, complementing MedImmune’s established platform in infectious disease and immunology
Overall, Calvert invested in Aviron from November 1995 until its acquisition by MedImmune on January 15, 2002, holding the stock for just over six years. During this time, the initial investment of $500,000 grew to $2,779,000. This is an example of early-stage investing that produced both societal and financial rewards.
Investing for the Future
Today, Calvert continues to support long-term venture capital investments to generate returns not only for our investors, but for future generations as well. Aviron is one example of this; there are many others. Under the Special Equities Program, Calvert has also invested in solar and alternative energy companies dating back to the mid-1990s, long before investment in alternative energy technologies was on the rise.
1 As of November 30, 2009, no Calvert Fund had any investment in MedImmune, Inc.
Investment in mutual funds involves risk, including possible loss of principal invested.
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