Intercell receives milestone payment triggered by initiation of further clinical trial for Flu vaccine with...

Intercell receives milestone payment triggered by initiation of further clinical trial for Flu vaccine with IC31

Intercell receives milestone payment triggered by initiation of further clinical trial for Flu vaccine with IC31

Further clinical trial for a seasonal flu vaccine containing Intercell´s adjuvant IC31® being initiated Intercell will be entitled to receive EUR 2 m milestone payment upon the vaccination of the first human subject in the clinical trial

Vienna (Austria), June 13, 2008 - Intercell AG (VSE: ICLL) today announced progress in its collaboration with Novartis to develop an improved Influenza vaccine. Novartis now has initiated its in-house development program with clinical trials designed to demonstrate safety and immunogenicity of a seasonal Influenza vaccine adjuvanted with IC31®. This triggers a milestone payment of EUR 2 m to Intercell. As part of the agreement between Novartis and Intercell, signed in July 2007, Novartis has an exclusive license for development of Intercell's IC31® adjuvant in novel influenza vaccines. As announced in February 2008 Intercell completed an initial Phase I clinical trial of the company's adjuvant IC31® in combination with the seasonal, trivalent influenza vaccine Agrippal® from Novartis. The IC31® adjuvanted vaccine showed an excellent safety and tolerability profile, which was comparable to the non-adjuvanted standard vaccine. Furthermore in all study groups vaccination with the test vaccine led to the induction of virus specific T-cells and protective levels of antibody responses against the three included influenza strains.

Gerd Zettlmeissl, CEO of Intercell, commented: "Intercell's IC31® has shown excellent preclinical data and an encouraging profile in first trials in humans and we are confident that an influenza vaccine formulated with IC31® now further developed by Novartis has potential to become a next generation vaccine."

About IC31®

Vaccines, based on antigens alone, are not sufficient to provide full protection. Adjuvants are needed to educate the immune system to recognize and eliminate the pathogens efficiently. IC31® is an adjuvant that induces T-cell and B-cell responses by using a unique synthetic formulation which combines the immunostimulating properties of an anti-microbial peptide, KLK, and an immunostimulatory oligodeoxynucleotide, ODN1a. The two component solution can be simply mixed with antigens; no conjugation is required. Intercell currently uses IC31® in collaborations with a number of global vaccine companies and biotech companies. These collaborations include amongst others the development of a tuberculosis vaccine in Phase I clinical trials, which has been partnered with the Danish Statens Serum Institut and Sanofi Pasteur.

Further inquiry note:

Intercell AG

Lucia Malfent Head of Communications Tel. +43 1 20620-303


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