Needle-less injection company Powderject is to buy the UK vaccines business of Celltech, Britain's largest biotech company, for 55m, writes Maggie Hartford.

Powderject, based at Oxford Science Park, will buy Britain's only vaccine manufacturing plant, employing 600 at Speke, near Liverpool.

The deal transforms Powderject into the world's sixth biggest vaccine producer.

Powderject which is also acquiring licensing rights to the Hepacare hepatitis B vaccine in exchange for royalty payments will pay 30m in cash, with the balance in convertible loan stock.

There may be an additional 3m payment, depending on flu vaccine sales this winter.

Medeva had invested 90m in the state-of-the-art factory, which also produces vaccines against TB and yellow fever. Its sales fell from 60m in 1998 to 35m last year, because of production problems.

Powderject made a pre-tax loss of 18.4m in 1999. Chief executive Paul Drayson said: "This brings forward our profitability by one year to 2003. "It's an excellent fit because it combines our R&D pipeline in vaccines and the Powderject delivery system with a business which has an exciting range of currently marketed vaccine products together with an excellent manufacturing facility."

He added: "The real heart of the company is its technology, which came from Oxford University, and the head office will remain in Oxford."

Powderject intends to move as much as possible of the Medeva vaccine business into its needle-less delivery system. Long term, Powderject also has high hopes for the needle-less version of its new flu DNA vaccine.

Powderject is already developing treatments against HIV, hepatitis B and malaria. Shares in Powderject rose 1.7 per cent on the news.