EANS-Adhoc: Intercell AG / Intercell renews strategy and provides initial update on S. aureus

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08.06.2011

» Renewal strategy is to strive towards financial self-sustainability
in the mid term through a combination of the following four key
pillars: 1) Revenue growth, 2) Pipeline investments, 3)
Operational and financial discipline, and 4) Leverage partnerships

» Strategy based on creating shareholder value by balancing pipeline
investments with financial performance objectives

» Revenue growth strategy for IXIARO®/JESPECT® is given key priority
- aiming for positive product cash flow in 2012

» R&D focus on most promising core programs and technologies will
deliver an attractive risk-return profile

» Intercell´s partner Merck & Co., Inc. has informed the company
about its decision to discontinue the investigational S. aureus
vaccine candidate trial

Vienna (Austria), June 8, 2011 - Today, Intercell´s new CEO Thomas
Lingelbach announced the key elements of Intercell´s renewal
strategy, aiming at creating shareholder value by balancing pipeline
investments with financial performance objectives.

The strategy is based on four pillars:
1) Revenue growth,
2) Pipeline investments,
3) Operational and financial discipline, and
4) Leverage partnerships

Revenue growth will be primarily achieved by maximizing the value of
IXIARO®/JESPECT® Two years after the global launch of Intercell´s
vaccine against Japanese Encephalitis, the product is showing strong
year-on-year revenue growth. Together with its global distribution
partner Novartis, Intercell will expand its direct selling resources
to increase penetration in the key markets. Leveraging the product
into the Asian endemic markets and pediatric licensure will
complement the global territory expansion. Increased manufacturing
efficiency and capacity utilization are expected to contribute to
margin improvement and a positive product cash flow in 2012.

Pipeline investments: Focus on the most promising core R&D programs
and revision of their execution play a key role in the scope of
Intercell´s renewal strategy.

The next development steps for the Company´s vaccine candidates
against Pseudomonas (Phase II/III with Novartis) and C. difficile
(Phase I) as well as the Pandemic Flu vaccine patch system (Phase I
with GSK vaccine) have been designed to balance risks and benefits as
these candidates progress toward the next value inflection points. As
part of the pipeline prioritization, development of other clinical
stage programs such as the Pneumococcus vaccine candidate have been
put on hold. Intercell´s new research strategy will leverage
technologies (patches, antibodies) with the most potential to create
new partnerships while the existing platforms (IC31®, AIP®) will be
maintained in response to ongoing partnerships. One lead candidate
will be managed towards clinical entry in the next two years evolving
from Intercell´s pipeline or external incubator collaborations.

Operational and financial discipline focusing on an optimized R&D
pipeline management and further cost-cutting measures While
maintaining its commitment to investing in R&D, Intercell intends to
strive for mid-term financial self-sustainability by continuation of
recent cost containment and financial discipline. The Company intends
to further continue cost reductions leading to above 50% compared to
2010 by being a lean and consolidated organization, focusing on the
most promising programs, which are best positioned to deliver value
inflection points in the next three years, as well as cost- and risk
sharing collaboration agreements with partners.

Leveraging the value of partnerships Strategic focus will be put on
maximizing the value from partnered development programs under the
existing alliance agreements and on creating new partnerships from
un-partnered programs or technologies, cleaning up and monetizing
unexplored Company assets.

CEO Thomas Lingelbach emphasizes that the Company is in a difficult,
but highly promising stage: "The past year has been a tough year with
high losses and a significant setback for us and our share-holders.
However, with our further IXIARO®/JESPECT® growth, the Company´s
extensive scientific basis and by executing on our presented strategy
I am convinced that we are well positioned for positive renewal."

Intercell received an update from Partner Merck & Co., Inc. that,
following a recommendation by the independent Data Monitoring
Committee (DMC) after the benefit/risk analysis previously announced,
they intend to discontinue the Phase II/III clinical trial evaluating
V710, an investigational vaccine for the prevention of Staphylococcus
aureus (S.aureus) infection. Details explaining this decision will be
provided in a joint press release later today.

end of announcement euro adhoc
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issuer: Intercell AG
Campus Vienna Biocenter 3
A-1030 Wien
phone: +43 1 20620-0
FAX: +43 1 20620-800
mail: investors@intercell.com
WWW: www.intercell.com
sector: Biotechnology
ISIN: AT0000612601
indexes: ATX Prime, ATX
stockmarkets: official market: Wien
language: English

ots Originaltext: Intercell AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Intercell AG
Nina Waibel
Corporate Communications
Tel. +43 1 20620-1222
communications@intercell.com

Branche: Biotechnology
ISIN: AT0000612601
WKN: A0D8HW
Index: ATX Prime, ATX
Börsen: Wien / official market