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Intercell Executes Multi-Year Contract for Supply of IXIARO(R) to the United States Military
Date:5/8/2009

- Exclusive, multi-year contract executed by Intercell and U.S. Department of Defense for purchase of IXIARO(R)

- First sales of IXIARO under this military contract expected soon

VIENNA, May 8 /PRNewswire-FirstCall/ -- Intercell AG (VSE: ICLL; OTC Bulletin Board: INRLY) announced today that the Company has successfully entered into a multi-year contract with the Defense Logistics Agency (DLA), Defense Supply Center of the U.S. Department of Defense to supply IXIARO, a vaccine against Japanese Encephalitis (JE). The first sales of IXIARO under this contract are expected in the near future.

This supply contract was negotiated in response to a Request for Proposals (RFP) issued by the DLA in August 2008. The parties were able to move forward to finalize the contract after IXIARO was approved by the Food and Drug Administration on March 30.

The major terms of this contract are as follows:

  • Exclusive contract for Intercell to supply DLA with all their requirements for JE vaccine
  • Five-year contract, with annual options for price modifications

"With a mortality rate that can exceed 30 percent, Japanese Encephalitis is a clear danger to the thousands of military personnel - and their families - that are stationed in areas where the disease is endemic. IXIARO will provide a new level of protection for this group of people at risk," stated Gerd Zettlmeissl, Chief Executive Officer of Intercell. "Intercell is very pleased that the Department of Defense has acknowledged the value of IXIARO by entering into a long-term supply agreement."

IXIARO was developed by Intercell under an agreement with the Walter Reed Army Institute of Research (WRAIR).

JE is a very serious and growing public health threat in Asia. The U.S. military plans to use IXIARO to protect its troops, families and contract workers who are deployed to affected countries.

Intercell will directly distribute and market IXIARO to the U.S. military. Novartis Vaccines USA will market and distribute the vaccine to the private market in the U.S.

About Japanese Encephalitis

Japanese Encephalitis is a mosquito-borne infection that strikes 30,000 to 50,000 individuals a year, causing 10,000 to 15,000 deaths (both probably an underestimate due to underreporting and other factors). Up to 50 percent of survivors have persistent neurological sequelae. Japanese Encephalitis is the leading cause of viral neurological disease and disability in Asia and the most important viral encephalitis in Asia. The disease is most common in several developing countries in Asia, including India and China. As there is no specific treatment for JE, health care experts recommend vaccination as the only highly effective protection for the millions of travelers and military personnel who live in or travel to areas where the virus circulates.

About IXIARO

Intercell's novel Japanese Encephalitis vaccine is a purified, inactivated vaccine for active immunization of adults against the Japanese Encephalitis virus. The total development time of this vaccine took more than 10 years. The vaccine was developed under a Collaborative Research and Development Agreement with the Walter Reed Army Institute of Research, a biomedical research laboratory for the U.S. Department of Defense.

Intercell's Phase III trials for the vaccine found that the vaccine demonstrated excellent immunogenicity against Japanese Encephalitis and an overall clinical safety profile similar to the control arm, combined with an excellent local tolerability profile. These data were published in The Lancet in December 2007:

  • The immunogenicity was comparable to that of the U.S. licensed product, JE-VAX(R).
  • Intercell's vaccine demonstrated an overall clinical safety profile similar to the control arm.
  • Further, Intercell's Japanese Encephalitis vaccine had a more favorable local tolerability profile in the head-to-head study with JE-VAX(R).

About Intercell AG

Intercell AG is an innovative biotechnology company that develops novel vaccines for the prevention and treatment of infectious diseases with substantial unmet medical needs. Intercell's vaccine to prevent Japanese Encephalitis is the Company's first product on the market.

The Company's technology platforms include an antigen-discovery system, adjuvants and a novel patch-based delivery system (Vaccine Patch, Vaccine Enhancement Patch). Based on these technologies, Intercell has strategic partnerships with a number of global pharmaceutical companies, including Novartis, Merck & Co., Inc., Wyeth, and Sanofi Pasteur.

The Company's pipeline includes a Travelers' Diarrhea Vaccine Patch (Phase II concluded), a Pseudomonas vaccine candidate (Phase II), a Vaccine Enhancement Patch to prevent Pandemic Influenza in combination with an injected vaccine, a vaccine program for S. aureus, which is being developed with Merck & Co., Inc. (Phase II/III), as well as a vaccine candidate for Pneumococcus (Phase I). In addition, three other products focused on infectious diseases are in pre-clinical development.

Intercell is listed on the Vienna stock exchange under the symbol "ICLL".

For more information, please visit: www.intercell.com

This communication expressly or implicitly contains certain forward-looking statements concerning Intercell AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of Intercell AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Intercell AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.


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SOURCE Intercell AG
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