Novartis in a deal with Intercell for $366 million
Novartis has done a deal with Intercell an Austrian company for access to one of their vaccines. It is for IC31 against influenza.
Novartis actually has an article on this on their website now.
Novartis and leading research organizations join forces to fight Dengue fever
Intercell has an intersting portfolio. They have two candidates; one for Japanese Encephalitis which has completed phase III studies and another one that is not specifically listed on their website. They also have several preclinical vaccines under development the most interesting of which is to prevent traveler’s diarrhea
Intervcell also has the announcement:
Intercell and Novartis form world-leading strategic partnership to drive vaccines innovation
The interesting parts are quoted below.
Alliance creates opportunity for two strong innovators to combine development efforts in attractive areas
Intercell to receive upfront payment of € 270 ($ 360) million in upfront payments and equity investment granting Novartis option to non-partnered vaccine candidates and 4.8 million new shares
Pipeline to benefit from Novartis Vaccines’ phase III development capabilities and commercial strength
Exclusive Partnership for IC31® in influenza vaccines
Summary of Transaction Highlights:€ 120 ($160) million upfront license and option fees
€ 150 million ($200) cash contribution through subscription of of 4.8 million new shares, allowing Intercell to maintain full strategic flexibility. This will increase Novartis’ equity stake from 6.1% current to 16.2% - without any controlling rights. The new shares will be issued at a price of € 31.25 ($ 41,8) per share. This represents a 30% premium to the last closing price.
An exclusive license for development of Intercell’s IC31® adjuvant in novel influenza vaccines with milestones up to approx. € 100 ($ 134) million during the development period and double-digit royalty rates tied to sales performance. In addition, Intercell will receive € 30 to € 60 ($ 40 -$ 80) million during the development period in upfront and milestones plus up to high single-digit royalties, tied to sales performance for each future license for IC31® in selected areas.
Intercell retains the right at its election either to profit-share with Novartis on, or to receive potential milestones of € 120 ($ 150) million after Phase II for the remaining development period and solid double-digit royalties tied to sales-performance, for each product for which Novartis opts in.
i do believe that if a couple fo these vaccines are successful then Novartis is likely to gobble up the rest of the company.
Other Resources
Novartis Intercell - Google News
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Technorati Tags: Novartis, Intercell, vaccine
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July 31st, 2007 at 7:21 pm
The drug companies have put together a brilliant campaign to increase sales. The idea; to get kids on Ritalin through school psychologists and psychiatrists was pure genius. They came up with disorders; attention-deficit-disorder, mood-disorder, obsessive compulsive-disorder, anxiety-disorder, conversion-disorder, panic-disorder, phobic-disorder and on and on. All you have to do is hyphen “disorder” onto an emotion or a disability, whip up a drug to handle it and presto, the money pours in.
And now the other drug companies are copying Novartis.
The best thing is that these new clients as they get older will need more and more Ritalin as it is basically an amphetamine and most will be on some form of it for the rest of their lives; thus insuring growth. And now I see that they are working on getting babies on it. Wow! Will the brilliance ever cease?
The outrageous allegations that Ritalin is a starter drug that creates addicts that then do street crime are just spurious charges done by people who are jealous of the money that the company and their investors make.