Vienna (Austria), July 20, 2010 – Intercell AG (VSE: ICLL) is pleased to announce that Bill Gates, Co-chair of the Bill & Melinda Gates Foundation today has visited Intercell's headquarter in Vienna for a close look at the Company's product pipeline and innovative vaccine technologies to fight infectious diseases. By developing innovative vaccines, Intercell makes an active contribution to people's health.

Bill and Melinda Gates recently committed USD 10 billion over the next 10 years to help research, develop and deliver vaccines for the world's poorest countries. The foundation is convinced that vaccines are one of the most effective health interventions ever developed. The goal of the Bill & Melinda Gates Foundation is to increase the use of effective but underused vaccines and introduce new vaccines to prevent a total of 4 million deaths per year.

Getting cost-effective vaccines to the people in developing countries who need them is complicated and a significant challenge for the vaccine industry. Intercell is aware of this challenge and develops vaccines with substantial medical needs. The company already works with international organizations dedicated to combating illness in developing countries, like PATH (Pneumococcus vaccines candidate) and AERAS Global Tuberculosis Foundation (Tuberculosis vaccine). Moreover, the Company's first product against Japanese Encephalitis and its Travelers' Diarrhea vaccine candidate can bring innovation to all geographic areas. Intercell's vaccine patch technology with its ease of administration and the potential room-temperature stability, is expected to also increase accessibility to vaccines among the world's poorest populations.

During his stay in Vienna, Bill Gates and Intercell's Management team discussed also potential ways of future cooperation to develop novel and innovative vaccines for the developing world.

"It was a big honor of having Bill Gates visit and stay with us. Partnerships focused on reducing infectious diseases can save millions of lives and are also helping to build a stronger foundation for the development and distribution of vaccines. As a vaccine company, Intercell is committed to improve the health of all people and contributes to support significant and lasting change," stated Gerd Zettlmeissl, CEO of Intercell.

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• Bill Gates visited Intercell to discuss vaccine approaches for developing countries (.pdf, 182kB)

The decision by the Swiss authorities represents another important milestone for the licensure process initiated for selected attractive market segments. Intercell's vaccine, which helps to prevent Japanese Encephalitis, has already been approved and launched in the USA, Europe, Canada and Australia.

"The Swissmedic approval is great news and another important step in the product's global reach", states Thomas Lingelbach, Chief Operating Officer of Intercell.

IXIARO® is a modern purified, inactivated vaccine for active immunization of adults against infections caused by the Japanese Encephalitis Virus. IXIARO® is manufactured at Intercell's proprietary manufacturing facility in Scotland using tissue culture rather than live organisms.

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• Swiss authorities grant product approval for IXIARO®, Intercell's vaccine to help prevent Japanese Encephalitis now available in Switzerland (.pdf, 180kB)

Vienna (Austria) / Gaithersburg (USA), July 2, 2010 - Intercell AG (VSE: ICLL) today announced the results of a Phase II clinical trial of its investigational Vaccine Enhancement Patch (VEP) system for avian H5N1 influenza. In this development program, Intercell is working under a contract with the U.S. Department of Health and Human Services (HHS) to develop a dose-sparing approach with potential for a single dose immunization against pandemic influenza that combines a H5N1 vaccine with Intercell’s LT adjuvant patch.

Following encouraging pre-clinical and clinical Phase I proof-of-concept trials conducted under this HHS contract, the clinical Phase II study was designed to determine the safety and  the optimal combination/dose of an injectable H5N1 influenza vaccine (30 and 45μg antigen) and Intercell’s VEP (50 and 100μg LT adjuvant) applied at the injection site. A total of 500 healthy adults were recruited in 6 study groups.

The study did not identify the optimal combination of antigen and adjuvant because no statistically significant difference in seroprotection rates as measured by Haemagglutinin Inhibition (HI) assay was observed when comparing groups with and without VEP.

However, the study results demonstrated a good safety profile for all doses of injectable vaccine and adjuvant patches studied. Furthermore, a dose-dependent response to the H5N1 antigen was observed. Anti-LT IgG titers in study subjects receiving the patch confirmed that Intercell’s VEP could consistently deliver the vaccine adjuvant.

Intercell intends to conduct further clinical evaluation using its VEP in combination with an injectable H5N1 vaccine to be supplied by GlaxoSmithKline (GSK) as part of a collaborative agreement signed in December 2009.
HHS and Intercell are currently considering the next steps for this development program.

"Single-dose protection against highly pathogenic pandemic influenza strains such as H5N1 is an important goal for pandemic protection, but one which has been shown to be challenging ”, said Thomas Lingelbach, Chief Operating Officer of Intercell and CEO & President Intercell USA Inc. “We think that despite the inconclusive results, our Vaccine Enhancement Patch is uniquely positioned to have the potential to achieve single-dose protection and hence Intercell using its partner GSK’s vaccine  intend to proceed with further clinical evaluation.”

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• Intercell reports Phase II Study Results of its Vaccine Enhancement Patch for Pandemic Influenza (.pdf, 191kB)

Vienna, June 25, 2010 – Intercell AG (Vienna Stock Exchange, ICLL) today announced that all proposed resolutions were approved by the Annual Shareholders Meeting held today.

A total of approximately 33% of the outstanding share capital of Intercell AG was represented in the meeting.
Authorization to repurchase own shares: The unused authorization of the management board granted by a resolution of the annual general meeting held on June 13, 2008 to repurchase treasury bearer shares within a duration of 30 months from the date of that resolution at a minimum equivalent of Euro 20.00 per share and a maximum equivalent of Euro 60.00 per share of choice of the management board on the stock exchange or through a public offer is revoked. Simultaneously the management board is authorized according to section 65 para 1 subpara 8 of the Stock Corporation Act (AktG) to repurchase within the legal limits treasury shares with no par value within a duration of 30 months from the date of this resolution at a minimum equivalent of Euro 12.00 per share and a maximum equivalent of Euro 60.00 per share. a) The management board is authorized to use treasury shares to serve stock options granted to employees, executives and members of the management board of the Company or an affiliated company and/or members of the supervisory board of the company or an affiliated company, b) to sell treasury shares in accordance with section 65 para 1 b Stock Corporation Act (AktG) at any time via the stock exchange or by a public offer, or c) with the consent of the supervisory board to resolve on another way of selling of the treasury shares than on the stock exchange or by a public offer under exclusion of the subscription rights of existing shareholders.

The further resolutions included:

• Discharge of the members of the management board for the business year 2009.
• Discharge of the members of the supervisory board for the business year 2009.
• Remuneration for the members of the supervisory board for the business year 2009.
• Providing for the grant of stock options as remuneration to members of the Company’s supervisory board.
• Election of the auditor and the group auditor for the business year 2010.
• Resolution on the amendments to the Articles of Association reflecting the Aktienrechtsaenderungsgesetz 2009 (Stock Corporation (Amendment) Act 2009).

At the meeting Intercell's Management Team (CEO Gerd Zettlmeissl, CFO Reinhard Kandera and COO Thomas Lingelbach) reported on the business year 2009 including the financial results and presented an overview on the business strategy and recent achievements in 2010.
The presentation to the shareholders is available at the company's website www.intercell.com.

For further details about the resolutions please see www.intercell.com.

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• Intercell invests in antibody technology (.pdf, 137kB)
  (Source: MedNous, vol 4, No 6, June 2010)

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• Intercell completed the acquisition of Cytos' antibody technology platform (.pdf, 175kB)

Gerd Zettlmeissl commented, "We are extremely honored to be recognized by the DoD for our collaborative research and development efforts. Special recognition is given to our colleagues at Walter Reed Army Institute of Research (WRAIR) who initiated this JE vaccine project in the mid 1990s and contributed to numerous aspects of the development program up to licensure."

IXIARO was developed under a Collaborative Research and Development Agreement (CRADA) with WRAIR and approved in March 2009 by the U.S. Food and Drug Administration for the prevention of Japanese Encephalitis. Intercell currently distributes and markets IXIARO to the U.S. military, with Novartis Vaccines USA marketing and distributing the vaccine to the private market in the U.S.

Japanese Encephalitis is a mosquito-borne infection that strikes approximately 50,000 persons per year and is most common in developing countries in Asia, including India and China.

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• Intercell Recognized by U.S. Department of Defense for Development of Japanese Encephalitis Vaccine, IXIARO® (.pdf, 185kB)

Intercell acquires antibody technology to complement its technology platform and to explore new medically and commercially attractive applications for its Antigen Identification Program (AIP®)

On May 6, Intercell announced that it has signed an agreement with Cytos Biotechnology Ltd. to acquire Cytos' platform technology for antibody discovery. The technology, which is based on human B-cells, enables the identification of anti-infective antibodies to prevent and treat infectious diseases. The Antibody Technology complements Intercell's existing technology platforms and opens novel medically and commercially relevant applications for Intercell's Antigen Identification Program (AIP®). In its future antibody discovery activities, Intercell will focus on medically and commercially attractive indications, i.e. to treat hospital-acquired infections and to prevent Group B Streptococcus in newborns.

Under the agreed terms, Intercell will pay EUR 15m to Cytos.

Intercell and Boehringer Ingelheim Vetmedica GmbH enter into a strategic partnership to develop animal vaccines

On May 10, Intercell and Boehringer Ingelheim Vetmedica entered into a worldwide Option and Exclusive License Agreement under which Boehringer Ingelheim Vetmedica has the right to use certain antigens derived from Intercell's Antigen Identification Program (AIP®) to develop animal vaccines. Under the agreement, Intercell will receive upfront, option, and milestone payments as well as royalties on product net sales.

IXIARO®/JESPECT® – Product sales for Intercell's traveler vaccine to prevent Japanese Encephalitis are expected to increase significantly in Q2 2010 – focus to further grow sales in traveler and military markets

A strong focus is given to the IXIARO®/JESPECT® vaccine business to grow sales in the traveler and military markets. After having received a broadened vaccination recommendation in the U.S. in 2009, the Joint Committee on Vaccination and Immunization (JCVI) in the UK has now also extended its Japanese Encephalitis immunization recommendation to include the Intercell vaccine. Additional recommendations are expected for other key countries in Europe. These recommendations are essential to continue advancing product awareness and market growth for the Intercell vaccine to prevent Japanese Encephalitis.

Product sales are expected to increase significantly in Q2 2010, supported by the upcoming travel season. Intercell had previously announced that new product supplies designated for marketing and distribution partners, shifted from Q1 to Q2 2010 due to supply-planning and lot release timing for European markets.

The development targeting the Asian endemic markets is progressing further. The Phase III start for the endemic Japanese Encephalitis vaccine produced by Intercell's partner Biological E. in India is expected to commence by the end of 2010 under a revised regulatory path to licensure by Indian authorities.

Good progress in world-leading development pipeline – clinical programs progressing according to plan

In February 2010, Intercell announced results from a Phase I clinical trial investigating the Company's vaccine candidate for the prevention of infections from the bacterium Streptococcus pneumoniae. In the first-in-man trial, 32 healthy adults were vaccinated with Intercell's investigational vaccine. Two antigen dosages, with and without addition of aluminum hydroxide, were applied in four different study groups. The initial analysis of the data has indicated a good safety and tolerability of the vaccine candidate, which was confirmed by a Data Safety Monitoring Board. The vaccine was immunogenic, and antigen dose-dependent induction of antibodies was confirmed for all three proteins of the vaccine. Intercell's investigational prophylactic vaccine candidate is a recombinant subunit vaccine consisting of three highly conserved proteins of Streptococcus pneumoniae.

Further important data is expected from Phase II studies for Intercell's investigational single application Pandemic Influenza vaccine system in Q2 2010.
The Phase II study for the investigational Pseudomonas vaccine in ICU patients has completed recruitment of 400 study subjects. First interim data on safety and immunogenicity were reported in December 2009. Additional data is expected in Q3 2010.
The pivotal Phase III study for the investigational Travelers’ Diarrhea (TD) Vaccine Patch is progressing according to plan. The randomized and placebo-controlled study with 1,800 European travelers to Mexico and Guatemala will evaluate the efficacy of the TD Vaccine Patch to actively immunize against moderate to severe enterotoxigenic Escherichia coli (ETEC) disease in a field setting. First data is expected by the end of 2010 or beginning of 2011.

In January 2010, Intercell announced the start of a Phase II study in India as part of its clinical development program for the investigational Travelers' Diarrhea (TD) vaccine system. This placebo-controlled field study with vaccinated travelers from the EU to India will test the efficacy of the Intercell TD vaccine. The primary objective of this clinical trial is the prevention of all moderate/severe diarrheal cases in which LT, LT/ST, or ST toxins (ETEC) are detected. The enrollment of approximately 800 travelers from the UK and Germany is completed and first data is expected by Q4 2010.

The manufacturing plant for the patch vaccine at Intercell's Gaithersburg site (USA) has been upgraded for commercial manufacturing and all qualification and validation activities are progressing according to plan.

Staphylococcus aureus vaccine (V710): Phase II/III study recruitment in cardiothoracic surgery patients for the investigational S. aureus vaccine is progressing, with the first critical interim analysis (surpassing futility) expected during 2010 – collaborator Merck & Co., Inc. is responsible for clinical development, manufacturing, and marketing.

Tuberculosis vaccine: Phase I clinical programs are proceeding according to plan. These programs are based on a partnership between Intercell, Statens Serum Institut, sanofi-aventis and the AERAS Global Tuberculosis Foundation. Further clinical data is expected in 2010.

Therapeutic vaccine candidate against Hepatitis C: Intercell anticipates that a partnership to conduct combination studies with its vaccine will be identified in 2010.

Corporate / Other

Intercell was informed by its strategic partner Merck Sharp & Dohme Research Ltd., an affiliate of Merck & Co., Inc., that it intends to terminate the agreement covering the development of a prophylactic pre-clinical vaccine against Group A Streptococcus infections. With the termination of the agreement all rights granted by Intercell AG to Merck Sharp & Dohme Research Ltd. to develop vaccines to protect against severe infections caused by Group A Streptococcus will return to Intercell. While the collaboration was very productive Merck has made strategic program decisions following its merger with Schering-Plough Corporation. This decision does not affect Intercell’s other collaborative work with Merck. Intercell is committed to further developing this pre-clinical program in house or with a potential new partner.

Alexander von Gabain, Chairman of the Intercell Scientific Advisory Board and Strategic Advisor of the Company, was elected Foreign Member of the Royal Swedish Academy of Engineering Sciences (IVA).

Gerd Zettlmeissl, Chief Executive Officer of Intercell, received the Vaccine Industry Excellence Award for Biotech CEO of the Year at the World Vaccine Congress Washington 2010, which was held from April 19 - 22.

Q1 2010 Financial review

Revenues

Product sales were EUR 0.4m in both Q1 2009 and Q1 2010. Due to lot release timing, our planned product supplies to marketing and distribution partners for the main travel season shifted from Q1 to Q2 2010. Product sales are expected to increase by Q2 2010.

Aggregate revenues decreased from EUR 5.4m in Q1 2009 to EUR 4.8m in Q1 2010, or by 12.3%. This decrease was due to lower revenues from collaborations and licensing, which were EUR 4.2m in Q1 2009 and EUR 3.0m in Q1 2010, partly offset by an increase in grant income, which was EUR 0.8m in Q1 2009 and EUR 1.3m in Q1 2010.

Results of Operations

Intercell’s net loss increased from EUR 8.2m in Q1 2009 to EUR 14.7m in Q1 2010. The increase was primarily due to an increase in research and development (R&D) expenses and a decrease of income tax income.
Cost of goods sold decreased from EUR 1.6m in Q1 2009 to EUR 0.9m in Q1 2010, or by 43.6%, due to lower inventory write-offs.

R&D expenses increased from EUR 15.1m in Q1 2009 to EUR 17.9m in Q1 2010, or by 19.1%. This increase was mainly due to expenses for the Phase III clinical study for the Travelers’ Diarrhea (TD) Vaccine Patch. Intercell’s general, selling and administrative expenses increased from EUR 3.7m in Q1 2009 to EUR 4.3m in Q1 2010. Net other operating income increased from EUR 1.2m in Q1 2009 to EUR 3.3m in Q1 2010, which was mainly due to the effects of foreign currency exchange rate fluctuations.

Finance Results and Tax

Finance income, net of expenses was EUR 1.1m in Q1 2009 and EUR 0.3m in Q1 2010. Compared to Q1 2009, finance income in Q1 2010 decreased mainly due to lower interest rates. This decrease in financial income was partly offset by a decrease in financial expenses. Income tax income was EUR 4.4m in Q1 2009 and EUR 0.1m in Q1 2010.

Cash Flow and Capital Resources

Intercell’s net cash used in operating activities was EUR 14.3m in Q1 2009 compared to EUR 15.5m in Q1 2010. This increase was primarily due to higher R&D expenses and lower revenues.

Net cash generated from investing activities was EUR 0.6m in Q1 2009 and EUR 15.8m in Q1 2010. Without the effect of investments in, and proceeds from the sale of securities, net cash used in investing activities was EUR 5.4m in Q1 2009 and EUR 4.2m in Q1 2010.

Intercell’s net cash generated in financing activities was EUR 1.1m in Q1 2009 compared to EUR 0.4m used in financing activities in Q1 2010. The net cash outflow from financing in Q1 2010 resulted mainly from redemption payments under financial leasing arrangements.

As of March 31, 2010 Intercell had liquid funds of EUR 158.2m, of which EUR 81.6m was cash and EUR 76.6m was available-for-sale financial assets.

Key Financial Figures

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• Intercell AG announces Q1 2010 results and updates on R&D progress (.pdf, 400kB)

Vienna (Austria), May 10, 2010 – Intercell AG (VSE: ICLL) today announced that it has entered into a worldwide Option and Exclusive License Agreement under which Boehringer Ingelheim Vetmedica has the right to use certain antigens derived from Intercell’s Antigen Identification Program (AIP®) to develop animal vaccines. Under the agreement, Intercell will receive upfront, option and milestone payments as well as royalties on product net sales.

“Having partnered a number of our vaccine candidates derived from our AIP® with leading human vaccine players such as Merck and Novartis, we are very pleased to leverage the value of this successful technology also with a major animal vaccine company like Boehringer Ingelheim Vertmedica. This will allow us to further potentiate the technology and explore its technological and economical power beyond the area of human health”, stated Gerd Zettlmeissl, CEO of Intercell.

“We are pleased to partner with Intercell and to gain access to attractive vaccine targets generated by AIP®. We are committed to develop innovative vaccines to meet the urgent needs for the benefit of animal health”, stated Joachim Hasenmaier, CEO of Boehringer Ingelheim Vetmedica.

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• Intercell and Boehringer Ingelheim Vetmedica GmbH enter into strategic partnership to develop animal vaccines (.pdf, 185kB)