Intercell annonces EUR 25.0 million financing from BB Biotech and proposed private placement

Vienna (Austria), May 07, 2012 – Intercell AG (VSE: ICLL) today announced the signing of a combined debt and equity financing with BB Biotech, one of the largest dedicated biotech investors, globally. The investment through a fully owned subsidiary of BB Biotech AG consists of a EUR 20.0 million secured loan (the “Term Loan”) and a commitment to invest EUR 5.0 million as part of a proposed equity private placement (the “Private Placement”).

Intercell is in discussions with specialized healthcare investors regarding proposals for additional investment of EUR 10.0 to 15.0 million as part of the Private Placement.

The BB Biotech investment and the Private Placement, which should close before the end of May, are expected to secure Intercell’s funding needs into financial self‐sustainability.

Intercell’s CEO, Thomas Lingelbach, stated: “Following the successful strategic resetting in 2011, this financing marks an important step in the renewal of Intercell as a notable biotech vaccine company. With growing sales from our first product on the market, a diversified pipeline and technology base and a disciplined financial strategy, we are now very well positioned for the next development phase of our company.”

“This significant investment in Intercell is driven by our confidence in Intercell’s commitment to profitability, IXIARO®/JESPECT® sales growth and financial performance, and the quality of Intercell as a fully integrated biopharmaceutical company, with capabilities from research to manufacturing and sales”, stated Dr. Daniel Koller, Head Management Team of BB Biotech.

The EUR 20.0 million secured Term Loan provided by BB Biotech has a six‐year term. Repayment starts in the fourth year through twelve equal quarterly installments. The loan carries a variable interest rate of EURIBOR plus 6.5% (but not less than 10.9 %). In addition, Intercell will pay BB Biotech a royalty of 5.0% on its sales revenues from IXIARO®/JESPECT®´(decreasing to 1.5% for sales revenues in excess of EUR 50.0 million) for a ten‐year period. However, Intercell has certain buy‐out rights, which cap the overall interest, royalty and principal repayments. The loan is secured by a security interest in the assets related to IXIARO®/JESPECT®.

The EUR 5.0 million equity investment by BB Biotech will be undertaken by way of a subscription for approximately 1,962,000 Intercell shares at an issue price of ca. EUR 2.55 per share, as part of the Private Placement, the remainder of which will be placed with selected institutional investors. Intercell’s Management Board has resolved to exclude the subscription rights of existing shareholders in this capital increase.

About BB Biotech

BB BIOTECH AG was founded in Switzerland in November 1993 as an investment company and invests in biotech companies globally and has become one of the largest pure play biotech investors. BB BIOTECH registered shares are listed on the Swiss Stock Market, in the
ʺTecDAXʺ in Germany and the Italian ʺStar Segmentʺ.

The biotech industry is one of the most interesting growth industries of all. The increasing aging population and the many diseases that still canʹt be cured or treated increases the demand for new drugs. Due to the research of the biotech industry in the last years, an
increasing number of innovative substances with therapeutic potential have been developed.

The growth of the biotech industry is driven by more than 250 products in Phase III, the last phase of clinical development. Since the year 2000, more than one half of all newly approved drugs, a total of 20 to 30 per year, have been discovered by biotech companies. Total sales of biotech drugs will grow accordingly and an increasing number of biotech companies will turn profitable. BB BIOTECH offers its shareholders the opportunity to participate in this growth with above‐average appreciation potential.

Intercell AG

Intercell AG is a vaccine‐biotechnology company with the clear vision to develop and commercialize novel immunomodulatory biologicals to prevent disease and reduce suffering across the world.

Intercellʹs vaccine to prevent Japanese Encephalitis (JE) is the Companyʹs first product on the market. This is a next generation vaccine against the most common vaccine‐preventable cause of Encephalitis in Asia licensed in more than thirty countries.

The Companyʹs technology base includes novel platforms, such as the patch‐based delivery system and the proprietary human monoclonal antibody discovery system eMAB® (endogenous monoclonal antibody), in addition to well‐established technologies upon which Intercell has entered into strategic partnerships with a number of leading pharmaceutical companies, including GSK, Novartis, and Merck & Co., Inc..

The Companyʹs pipeline of investigational products includes a development program for the pediatric use of Intercellʹs JE‐Vaccine IXIARO®/JESPECT® in non‐endemic markets and the development for endemic markets in collaboration with Biological E. of a comparable vaccine based on Intercell’s technology. Furthermore, the portfolio comprises different product candidates in clinical trials: a Pseudomonas aeruginosa vaccine candidate (Phase II/III) partnered with Novartis, a vaccine to prevent Pandemic Influenza by combining the Companyʹs Vaccine Enhancement Patch with an injected vaccine (Phase I), a vaccine candidate against infections with C. difficile (Phase I) as well as numerous investigative vaccine programs using the Companyʹs IC31® adjuvant, e.g. in a Tuberculosis vaccine candidate (Phase II).

Intercell is listed on the Vienna Stock Exchange under the symbol ʺICLLʺ (U.S. level one ADR symbol ʺINRLYʺ).

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