Intercell to acquire Iomai Corporation for $189 million

13 May 2008

Mumbai: Austrian vaccine maker Intercell AG has agreed to acquire US-based Iomai Corporation for a total of $189 million (Euro 122 million).

Intercell will pay $6.60 for each Iomai share to expand its late-stage production pipeline, Vienna-based Intercell said in a statement.

Intercell AG works with Novartis AG and Merck & Co.

The acquisition will be made through a stock-for-stock exchange for approximately 41 per cent of Iomai's current shares outstanding held by major shareholders for approximately 1.7 million Intercell shares (representing approximately four per cent of Intercell's total outstanding shares), and an all-cash merger for the remaining fully diluted outstanding shares of Iomai's common stock for  approximately $119 million (Euro77 million), the company said in the statement.
 
The deal creates a leading `Traveler's Vaccine' portfolio by combining Intercell's `Japanese Encephalitis' vaccine with Iomai's needle-free `Travelers' Diarrhea' vaccine.

The Travelers' Diarrhea vaccine, based on the needle-free vaccine patch technology, is planned to enter phase III trials in the first half of 2009.

The transaction will give Intercell access to a further product generating technology platform, helping to expand its pipeline, leveraging Intercell's late stage product development and industrialisation expertise.