GlaxoSmithKline in deal with Intercell on needle-free patch-based vaccines

Austrian vaccine maker Intercell and GlaxoSmithKline Biologicals SA, the vaccines subsidiary of UK drug giant GSK, have agreed to form a strategic alliance to accelerate the development and commercialization of needle-free, patch-based vaccines.

The agreement will include Intercell's candidate vaccine for travelers' diarrhea (TD) and an investigational single application pandemic influenza vaccine, as well as the use of the patch technology for other vaccines in GSK's portfolio.

Includes 5% equity stake for GSK

Under the terms of the deal, GSK will make an upfront cash contribution of 33.6 million euros ($49.4 million), in addition to an equity investment of up to 84 million euros through a staggered shareholding purchase option of up to 5 % in Intercell. Included in the agreement are Intercell's investigational TD vaccine, currently in Phase III, and a developmental single application pandemic influenza vaccine in Phase II, as well as other potential future patch vaccines.

"This new partnership is combining the forces of Intercell's innovative needle-free vaccination program and technologies with a vaccine leader's strength in development and commercialization. In addition, we can pursue our business strategy of creating significant shareholder value as an independent company whilst continuing to develop one of the most innovative product pipelines in the industry," says Gerd Zettlmeissl, chief executive of Intercell.

"This novel technology has real potential to change the way vaccines are delivered in the future. GSK has an extensive portfolio of vaccines and we believe needle-free vaccination could offer benefits such as simplified administration and increased compliance." said Jean Stephenne, president of GSK Biologicals, adding: "This agreement demonstrates how, as an integral part of our R&D program, we not only look at new vaccines but also at alternative approaches to oral and intramuscular administration."

Each year, approximately 20 million international travelers develop TD while visiting endemic areas in Asia, Africa, and South America. Currently, there is no vaccine available to address this medical need, the companies noted in their press statements.