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Intercell acquires Iomai
11 Aug 2008
Austrian-based Intercell has acquired the American biotechnology firm Iomai for US$189 million, in a deal that closed at least one month ahead of schedule. Intercell managed to edge ahead of competitors to purchase Iomai, which will now become a subsidiary of Intercell. Intercell completed the purchase for 1.44 million of its shares and US$116 million in cash, despite which it is expecting to remain profitable in 2008. The closing price on the day the deal was first disclosed was US$2.92; however, the stock was worth US$6.59 a share when the deal closed, placing it within a cent of the valued US$6.60 price.
The acquisition has a great deal of synergy, with Intercell developing vaccines for the prevention of infectious diseases and Iomai focused on needle-free delivery of vaccines. Iomai's transcutaneous immunization technology has the potential to deliver novel vaccines, boost the efficacy of existing vaccines, and facilitate administration of currently-available vaccines. It acts by leveraging immune system cells in the skin to deliver vaccines.
With the acquisition of Iomai, Intercell has also gained a pipeline including clinical-stage pandemic influenza vaccines and a needle-free patch delivery vaccine against traveller’s diarrhoea. The latter has demonstrated efficacy in preliminary trials, significantly reducing both occurrences as well as severity of diarrhoea. Intercell intends to develop this alongside its own Japanese encephalitis vaccine in a portfolio of vaccines for travellers. Intercell’s vaccine is awaiting approval in Australia, Canada, the EU and US, and is expected to launch this year.
