Vaxin recently announced a joint venture with AnC Bio Group giving the Innovation Depot-based company access to research and manufacturing operations in South Korea. Vaxin will receive $2 million in cash and an additional $1 million to launch the joint venture.

The partnership expands Vaxin’s Asian market presence. It has a licensing agreement with another Korean firm for its flu vaccines.

The funding and manufacturing components are a major step toward Vaxin’s goal of developing commercial vaccines. It’s also a monumental victory for Birmingham’s biotech community because it publicizes the city’s assets on a global scale, according to Biotechnology Association of Alabama Executive Director Kathy Nugent.

Nugent said these types of deals give validity and credibility to Birmingham’s tech sector. It’s a necessary step in the effort to build a critical mass of biotech research, development and manufacturing of commercial products. The publicity generated by Vaxin’s announcement gives Birmingham a platform to attract venture capital and more startups, Nugent said.

“If we do more deals like that it will be easier for venture capitalists to be willing to go outside traditional hubs to build their companies and manufacturing plants,” Nugent said.

Vaxin, a University of Alabama at Birmingham spinoff, will use AnC Bio’s investment to sustain the research of its current pipeline of experimental vaccines. It is developing a vaccine designed to combat the H1N1 flu strain.

Vaxin CEO Bill Enright said the United States’ economic downturn forced his firm to seek international partnerships. He said the joint venture with AnC Bio comes at a crucial time.

“It’s critical for the survival of the company to get this round of funding to advance our influenza vaccines’ clinical trials,” Enright said.

The partnership will bolster Birmingham’s international reputation, Enright said. He said there are dozens of U.S. cities seeking to join Boston, Baltimore and Raleigh, N.C., as biotech hubs.

Success stories are key to boosting international awareness of Birmingham’s research and development capabilities, he said. Enright said most venture capitalists view Birmingham as a flyover zone as they target firms in California and the East Coast.

“There’s a limited awareness of Birmingham,” Enright said. “People are aware of UAB and the technologies that come out of UAB.”

The impact of Vaxin’s international joint venture will be felt by Birmingham’s entire biotech community, according to UAB Research Foundation CEO David Winwood. Vaxin’s success increases the Magic City’s global profile. Vaxin’s ability to reach a level where international firms want to partner with it speaks well of the city and might give other firms reason to take a look at Birmingham, he said.

“This puts us on the map because this is an international deal,” Winwood said.

Winwood said the key to Birmingham reaching biotech hub status is local startups growing, attracting outside investment and producing commercial products. Boston and North Carolina’s Research Triangle became biotech investment magnets by perfecting that formula, he said.

“We want them to succeed, grow and stay here,” Winwood said.

Vaxin’s Enright plans to keep his firm’s roots in Birmingham. However, as the company grows, there might be a time when venture capitalists want it to relocate. For Birmingham to become a hub, those investors have to be convinced to keep startups in the city, he said. The city also must be able to attract and retain top researchers and entrepreneurs, Enright said.

“We remain here because at this point in the company’s lifecycle, the capital and human resources are in Birmingham,” Enright said. “Going down the road, we hope that remains possible, but if that doesn’t, we will have to decide if we need to relocate. Cash is king.”