euro adhoc: Intercell AG / Joint Ventures/Cooperation/Collaboration / Intercell and Merck expand strategic alliance to develop prophylactic vaccine and antibody treatments against Group A Streptococcu

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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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26.10.2006

» Agreement includes a USD 9.5 million upfront payment, up to USD 76
million milestone payments as well as royalties on future net
sales of the product

Intercell AG (VSE "ICLL") today announced that it has extended its
strategic partnership with Merck Sharp & Dohme Research Ltd., an
affiliate of Merck & Co., Inc., to include development of a
prophylactic vaccine against Group A Streptococcus infections.

The agreement is based on antigens that were discovered and validated
by Intercell’s proprietary bacterial Antigen Identification Program
(AIP®). The agreement also includes an option for Merck to develop
human monoclonal antibodies directed against antigens identified by
Intercell to treat and protect against severe infections caused by
Group A Streptococcus. Infection with Group A Streptococci is
responsible for a significant disease burden globally, sometimes
causing severe complications, such as necrotizing fasciitis,
requiring hospitalization and on occasion resulting in severe
disabling consequences to the patient. The pathogen is ubiquitous
and highly infectious. Even with uncomplicated infections, most
frequently pharyngitis, also known as strep throat, patients often
have to go through multiple cycles of antibiotic treatment. Strep
throat is one of the most common reasons for visits to the
pediatrician and the leading cause of antibiotic treatment in
children.

Under the terms of the agreement, Intercell will provide to Merck
certain Group A Streptococcus-specific antigens identified by its
Antigen Identification Program (AIP®) that have promising profiles in
preclinical vaccine models. Intercell will receive an upfront payment
of USD 9.5 million and is eligible to receive milestone payments up
to USD 76 million over the term of the agreement. Intercell will also
receive royalties on future net sales of the product.

"The agreement reinforces the value of our Antigen Identification
Program (AIP®)," said Alexander von Gabain, Chief Scientific Officer
of Intercell. "The AIP® has become a key source in the development of
novel vaccines and monoclonal antibody treatments. We are pleased to
broaden our existing relationship with Merck with the addition of
this important new target."

"Merck has been a world leader in bringing vaccines to the market to
combat diseases that cause significant morbidity and mortality," said
John Shiver, Vice President Vaccines and Biologics Research, at
Merck. "Our efforts to develop a vaccine against Group A
streptococcus infections demonstrate Merck's continuing commitment to
combat infectious diseases through innovative vaccines."

About Group A Streptococcus infections

Group A streptococci are frequent colonizers of the throats of
healthy children and can cause a spectrum of severe infections,
including pharyngitis, respiratory infections, rheumatic fever,
nephritis, and skin and soft tissue infections. An important
childhood manifestation of the disease is scarlet fever. Group A
streptococci are usually transmitted from person to person through
direct contact or inhalation of respiratory secretions. Many people
are asymptomatic carriers of Group A streptococci and under certain
circumstances, up to 70% of children may be colonized by this
organism. Thus, Group A streptococci are readily acquired in the
community and induce a high disease burden.

About Intercell’s AIP®:

Intercell’s Antigen Identification Program® identifies novel vaccine
targets from a variety of pathogens. Through the AIP®, a large number
of novel proteins relating to a wide variety of infectious diseases
have been successfully identified. In addition, certain product
candidates identified are currently partnered with either Sanofi
Pasteur S.A., or Merck & Co., Inc., and Kirin while others form the
basis for development projects that are planned to be either
developed in-house or partnered with third parties.

end of announcement euro adhoc 26.10.2006 17:20:05
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ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Intercell AG
Mag. Katharina Wieser
Head of Corporate Communications
Tel. +43 1 20620-303
kwieser@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Börsen: Wiener Börse AG / official market