Annapolis, Md.-based PharmAthene Inc. got a multiyear contract from the National Institute of Allergy and Infectious Diseases worth up to $83.9 million to develop a third-generation recombinant protective antigen (rPA) anthrax vaccine, while Emergent BioSystems Inc. landed its second government contract this month with $29.7 million for its own next-generation anthrax vaccine.

Under its award, PharmAthene will focus on creating an rPA anthrax vaccine that can be stored, transported and used without the need for a conventional cold chain for addition to the strategic national stockpile. Ideally, the vaccine would be able to maintain stability for three years at 35 degrees Celsius and would induce protective immunity in just one or two doses.

The only currently available anthrax vaccine is Emergent's BioThrax, which requires six doses over a period of 18 months to achieve protective immunity and is required to be stored at between 2 degrees Celsius and 8 degrees Celsius.

PharmAthene's contract calls for the firm to receive initial funding of about $13.2 million to support preclinical activities, including the development and qualification of assays, as well as stability testing, toxicology studies and the development of nonclinical animal models. Pending success, NIAID has the option of extending the contract under two separate options with a combined value of up to $9.7 million.

Additional options, including manufacturing and clinical development, could bring the entire contract up to $83.9 million.

The latest contract follows PharmAthene's $6.9 million award in 2005.

The company also is working on SparVax, a second-generation rPA anthrax vaccine, which consists of rPA adsorbed onto Alhydrogel and packaged as a liquid-filled syringe for intramuscular injection. That product has completed studies in nonhuman primates, as well as Phase I and Phase II trials in more than 750 healthy volunteers.

Shares of PharmAthene (AMEX:PIP) gained 8 cents to close Friday at $1.86.

Meanwhile, neighboring Rockville, Md.-based Emergent is working on its own next-generation anthrax vaccine. Its NIAID contract is valued at up to $29.7 million, with $24.9 million of funding over the three-year contract for manufacturing of clinical lots, nonclinical safety and efficacy studies and for stability studies to further demonstrate that the candidate does not need refrigeration during storage.

In addition, the contract provides up to $4.8 million for a Phase I trial, upon exercise of NIAID's option.

Shares of Emergent (NYSE:EBS) closed Friday at $14.65, up 39 cents.