Copenhagen, January 29th, 2025 – AJ Vaccines today announces the decision to phase out its Polio (Picovax) production as part of its strategy to ensure a sustainable and competitive future. This decision was made in response to unfavorable market conditions and significant financial challenges associated with Polio vaccine production.
Why Discontinue IPV Production? The polio business has been a financial burden for AJ Vaccines for several years, with annual losses ranging between USD 15–20 million. The market is characterized by excess capacity, intensified international competition, and declining prices, making it difficult to sustain profitable production, particularly in a high-cost economy like Denmark. At the same time, both current and future demand from the company’s largest customer for Polio, is impacted by great uncertainty.
A Gradual Phase-Out To ensure a responsible transition, AJ Vaccines has decided to gradually phase out Polio production by 2027 while honoring existing supply agreements. This approach will ensure a stable supply to customers and partners during the phase-out period. The decision also allows for a reallocation of resources toward high-value products and markets with greater growth potential.
Organizational Impact As part of the phase-out, all functions and employees directly involved in Polio production is expected to be affected. Over the coming weeks, AJ Vaccines will conduct a thorough analysis of competencies and tasks, in collaboration with professional organizations, to ensure the organization is aligned with the new realities. Although this decision will result in redundancies, it is necessary to eliminate recurring financial losses and establish a solid foundation for future growth.
Focus on the Future The phase-out of Polio is an important part of AJ Vaccines’ development towards becoming a broadly based healthcare company. Moving forward, the company will focus on high-value products, including tuberculosis products (BCG Vaccine and Tuberculin), bladder cancer treatment (BCG Culture), and immunization against Diphtheria and Tetanus (dT Vaccine), which are expected to drive growth in the coming years.
During the next years, we aim to secure an alternative utilization of our polio facility, which is based on the widely used VERO-Cell technology.
With a clear strategic direction and a strong commitment to delivering innovative solutions, AJ Vaccines is well-positioned to make a positive contribution to addressing future global health challenges.
For more information, please contact:
Ole Vahlgren
CEO AJ Vaccines