Company Overview of ID Biomedical Corporation

On September 14, 2011, Henry Schein Inc. entered into an amendment to its Distribution Agreement for Fluviral Influenza Vaccine, dated as of December 2, 2004, with ID Biomedical Corporation of Quebec, as amended (the Distribution Agreement). Pursuant to the Distribution Agreement, the parties agreed to negotiate in good faith new terms for the relationship, rights and obligations of the parties with regard to distribution of IDB's injectable influenza virus vaccine product (Product) in the 2012/2013 Flu Season. The parties further agreed that time was of the essence in this regard and intended to complete such negotiations and sign an amendment or new definitive agreement by September 1, 2011. To date, the parties have not completed such negotiations or entered into a new definitive agreement. Pursuant to the Distribution Agreement, if the parties did not enter into a mutually agreeable amendment or new definitive agreement for the 2012/2013 Flu Season before September 1, 2011, then IDB had the right to immediately terminate the Distribution Agreement with regard to all Flu Seasons after the 2011/2012 Flu Season during the 15 days following September 1, 2011 by providing written notice to the company.

Henry Schein Inc. entered into an amendment to its distribution agreement for Fluviral Influenza Vaccine, dated as of December 2, 2004, with ID Biomedical Corporation of Quebec. The amendment, among other things, modifies the Minimum Quantity per Flu Season of IDB’s injectable influenza virus vaccine product to be supplied by IDB and purchased by the company pursuant to the terms of the distribution agreement. Prior to the amendment, the minimum quantity per flu season of product to be supplied by IDB and purchased by the company under the distribution agreement was calculated as, the lesser of (i) 11,500,000 doses of Product or (ii) 50% of Product that IDB ships to the relevant territory for sale or distribution in such territory for such Flu Season; provided that in the 2010/2011 Flu Season, the Minimum Quantity was to be reduced by (a) the lesser of 1,000,000 doses of Product or 8.6956% of the amount of Product that would otherwise have been provided in the 2010/2011 Flu Season, or (b) if 50% of Product that IDB ships to such territory for sale or distribution in such territory is less than 5,750,000, 4.3478% of the amount of Product that would otherwise have been provided in the 2010/2011 Flu Season. Pursuant to the amendment, the minimum quantity per flu season of product to be supplied by IDB and purchased by the Company under the Distribution Agreement is calculated in the same manner; provided that in the 2011/2012 Flu Season, the Minimum Quantity will now be reduced by (i) the lesser of 2,000,000 (as opposed to 1,000,000) doses of Product or 17.3912% (as opposed to 8.6956%) of the amount of Product that would otherwise have been provided in the 2011/2012 Flu Season, or (ii) if 50% of Product that IDB ships to such territory for sale or distribution in such territory is less than 5,750,000, 8.6956% (as opposed to 4.3478%) of the amount of Product that would otherwise have been provided in the 2011/2012 Flu Season. Pursuant to the Amendment, the parties have agreed to negotiate in good faith new terms for the relationship, rights and obligations of the parties with regard to distribution of Product in the 2012/2013 Flu Season. The parties further agree the time is of the essence in this regard and intend to complete such negotiations and sign an amendment or new definitive agreement by September 1, 2011. If the parties have not entered into a mutually agreeable amendment or new definitive agreement for the 2012/2013 Flu Season before September 1, 2011, then IDB will have the right to immediately terminate the Distribution Agreement with regard to all Flu Seasons after the 2011/2012 Flu Season during the 15 days following September 1, 2011 by providing written notice to the company.