Intercell signs $47M JE vacc deal with Novartis

Austrian vaccines specialist Intercell AG has agreed on a marketing and distribution agreement for its Japanese Encephalitis vaccine with Swiss drug major Novartis, covering the USA, Europe and certain other markets in Asia and Latin America. Intercell intends to initially commercialize the vaccine on its own in the armed forces and military personnel market.

Under this marketing and distribution deal, Intercell is entitled to milestone payments of up to 37.0 million euros ($46.6 million), depending on final Phase III clinical trial data, as well as handling US and European regulatory approvals. In turn, Novartis has committed to an equity investment of up to 30 million euros in Intercell's recently-announced public offering (Marketletter June 19).

The product is a modern cell culture-based vaccine which is manufactured at the firm's plant in Scotland. Intercell stated that it will retain all development and production rights and will continue to lead its global development through regulatory pathways.