Stellar Biotechnologies, In and Neovacs S.A. announced they have entered into a term sheet to form a joint venture for the manufacture of conjugated therapeutic vaccines using Stellar's proprietary Keyhole Limpet Hemocyanin (KLH). The purpose of the proposed Joint Venture is to produce Neovacs' Kinoid product candidates, including IFN-Kinoid, as well as potentially manufacture other KLH-based immunotherapies on behalf of third party customers. The parties intend to negotiate the terms of one or more definitive agreements related to the organization, ownership allocation, and supply and services for the Joint Venture.

The parties anticipate that the Joint Venture will be owned initially 70% by Neovacs, with Stellar holding the remaining 30% interest. There can be no assurance that the Joint Venture will be consummated or, if consummated, will achieve the expected results.