Pfizer, the world's largest drugmaker, has acquired part of a company that used to belong to Lord Drayson, the controversial peer who came under fire for his donations to the Labour party.
PowderMed is a small, private vaccines business that was spun out of PowderJect in 2003 when the latter was bought by US group Chiron.
PowderJect now belongs to Novartis, but it was put under the spotlight in 2002 when it was awarded a £32m government smallpox vaccine contract without competition soon after Paul Drayson donated £50,000 to Labour.
A parliamentary investigation later found there was no wrong-doing.
Mr Drayson stepped down as chief executive of PowderJect in 2003 when it was bought out by Chiron, and went on to become a member of the House of Lords.
PowderMed has developed a unique technology to deliver DNA directly to the cells of the body's immune system using tiny gold particles coated in DNA. They are not injected like traditional vaccines, but delivered using pressurised helium gas, which places the particles just under the skin due to the speed and pressure of the helium when it is released.
The company has a pipeline of vaccine candidates for seasonal flu, the H5N1 strain of influenza and hepatitis B. It also has a partnership with GlaxoSmithKline to develop HIV treatments. The company is also developing some oncology programmes with the Ludwig Institute for Cancer Research.
Most of these projects are in Phase 1 development where they are tested on a small group of people and the most advanced candidate is the vaccine against seasonal flu, which is entering Phase II testing that involves a much larger human trial.
The global influenza market is highly lucrative with estimates suggesting it will reach £3.8bn by 2010.
Jonathan Senior, an analyst at Evolution Securities, says one of the advantages of PowderMed's technique is that it has the potential to be rolled out very quickly to treat a large number of people.
The traditional flu vaccine manufacturing system has remained unchanged for the past 50 years, producing the vaccine inside chicken eggs which takes up to nine months.
The procedure is constrained by limited manufacturing capacity and a limited ability to quickly adapt vaccines to emerging strains of influenza.
A spokesman for PowderMed said it could roll out its vaccines in less than three months.
David Shedlarz, vice chairman of Pfizer, said: "This acquisition is an example of the fresh approach Pfizer is taking to business development. With PowderMed's novel DNA technology and its portfolio of early-stage vaccine candidates, we are adding high-potential, externally sourced product candidates and technologies to our research and development portfolio."
A spokesman for the drugs giant added: "We've not had a presence in vaccines before, and this is a strategic move into the area."
Separately, in another big pharma deal, GlaxoSmithKline acquired the maker of the Breathe Right nasal strips for $566m (£303m). CNS also makes FibreChoice dietary fibre supplements.
