Novartis Enhances Its Vaccine Pipeline by Gaining Access to Intercell's Key Technologies and Vaccines Programs
- Comprehensive alliance broadens Novartis Vaccines portfolio by providing continuous access to more than 10 Intercell projects in preclinical and early-stage development for upfront payment of EUR 270 million, including equity investment
- Eligible candidates include IC43 for prevention of hospital-acquired pseudomonas infections and IC47 for prevention of pneumonia infections
- Alliance expands Novartis leadership in adjuvanted vaccines through exclusive rights to further develop IC31 adjuvant in influenza - designed to enhance effectiveness
- Novartis to assume responsibility for Phase III development, manufacturing and commercialization for any projects chosen after Phase II trials
BASEL, Switzerland, July 2, 2007 - Novartis and Intercell AG
have formed one of the vaccines industry's most comprehensive and
innovative strategic alliances, combining the research,
development, manufacturing and commercialization capabilities of
Novartis with Intercell's unique research skills and
highly-respected pipeline.
Several unpartnered projects in the existing Intercell R&D
portfolio, which currently includes more than 10 potential projects
for which Novartis may choose for further development, will further
strengthen the efforts of Novartis to building a broad range of
vaccines to prevent life-threatening viral and bacterial diseases
as well as strengthen its range of influenza vaccines.
Novartis has also secured opt-in rights to all future vaccine
candidates discovered by Intercell during the long-term
collaboration. The Austrian biotechnology company is focused on
novel vaccines for prevention and treatment of infectious diseases
with substantial unmet medical need.
"This novel alliance will further leverage the potential of various
Intercell vaccine candidates with the research, development,
manufacturing and commercialization expertise of Novartis," said
Jörg Reinhardt, CEO of Novartis Vaccines and Diagnostics. "We
are pleased to have reached this alliance with Intercell, which
shares our vision of science in vaccines and is widely regarded as
having one of the most innovative pipelines."
Among the various Intercell projects eligible to Novartis are the
IC43 vaccine candidate for use in patients with hospital-acquired
pseudomonas infections, which is now in Phase II trials and will
expand the range of nosocomial vaccines in the Novartis pipeline,
and the pre-clinical vaccine IC47 against pneumonia infections in
the elderly and infants.
Pseudomonas is a life-threatening infection considered the fourth
most common nosocomial pathogen and accounts for at least 10%
percent of all hospital-acquired infections - particularly in burn
victims, according to the US Centers for Disease Control and
Prevention (CDC). IC47 is a next-generation vaccine in
development for the prevention of diseases related to streptococcus
pneumoniae, such as pneumonia or otitis media (ear
infection).
This new collaboration with Intercell comes after Novartis signed
in 2006 a marketing and distribution agreement with Intercell for
IC51, a new vaccine currently in Phase III trials for use in
preventing infections from the Japanese Encephalitis virus.
The alliance will specifically focus on the development of vaccines
derived from Intercell's Antigen Identification Program (AIP),
including IC31 adjuvant technology in selected areas. Intercell's
AIP approach is complementary to the Reverse Vaccinology system
used by Novartis, which selects vaccine candidates based on highly
conserved antigen sequences.
Intercell has responsibility for all costs through the end of Phase
II clinical trials, while Novartis will assume responsibilities for
Phase III development, manufacturing and commercialization for any
projects chosen during the collaboration.
Novartis has also gained exclusive rights to further develop the
next-generation IC31 adjuvant for use in enhancing the
effectiveness of influenza vaccines. An influenza vaccine
formulated with this adjuvant began Phase I trials in June 2007.
Rights have also been gained to develop IC31 in other disease
areas.
The development of IC31 in influenza vaccines will further
strengthen the leadership of Novartis in adjuvant technology.
Novartis has the proprietary adjuvant MF59, which has been shown in
influenza vaccines to boost the body's immune system and enhance
protection with a lower dose of a viral antigen than other
vaccines.
The complementary research approaches of both companies will also
allow for the combination of various research efforts to leverage
existing assets in key areas, including efforts to develop
therapeutic vaccines for patients infected with the Hepatitis C
virus.
Financial terms of the agreement
Novartis will make an upfront payment of EUR 270 million to
Intercell for exclusive opt-in rights for any existing unpartnered
vaccine project or any future projects following the completion of
Phase II clinical trials. This upfront payment includes the
purchase of 4.8 million new Intercell shares at a premium to the
market price, which will increase the equity stake in Intercell to
16.1% from the current 6.1% acquired at the time of the IC51
vaccine agreement in 2006. The agreement is subject to customary
regulatory approvals, including in the United States.
About Novartis
Novartis Vaccines and Diagnostics is a division of Novartis focused
on the development of preventive treatments and tools. The division
has two activities: Novartis Vaccines and Chiron. Novartis Vaccines
is the world's fifth-largest manufacturer and second-largest
supplier of influenza vaccines in the US. The division's products
include influenza, meningococcal, pediatric and travel vaccines.
Chiron, the blood testing and molecular diagnostics business, is
dedicated to preventing the spread of infectious diseases through
the development of novel blood-screening tools. For more
information, please visit http://www.novartisvaccines.com
Novartis AG (NYSE: NVS) is a world leader in offering medicines to
protect health, cure disease and improve well-being. Our goal is to
discover, develop and successfully market innovative-products to
treat patients, ease suffering and enhance the quality of life. We
are strengthening our medicine-based portfolio, which is focused on
strategic growth platforms in innovation driven pharmaceuticals,
high-quality and low-cost generics, human vaccines and leading
self-medication OTC brands. Novartis is the only company with
leadership positions in these areas. In 2006, the Group's
businesses achieved net sales of USD 37.0 billion and net income of
USD 7.2 billion. Approximately USD 5.4 billion was invested in
R&D. Headquartered in Basel, Switzerland, Novartis Group
companies employ approximately 100,000 associates and operate in
over 140 countries around the world.
For more information, please visit http://www.novartis.com
Disclaimer
This release contains certain forward-looking statements, relating
to the Novartis Group's business, which can be identified by the
use of forward-looking terminology such as "will pay," "will
increase," "will allow," "prevent," "leverage," or similar
expressions, or by express or implied discussions regarding
potential development, marketing approvals, commercialization or
indications or future sales of IC31, IC43 and IC47. Such
forward-looking statements reflect the current views of Novartis
regarding future events, and involve known and unknown risks,
uncertainties and other factors that may cause actual results with
IC31, IC43, IC47 and other potential vaccine development candidates
from Intercell to be materially different from any future results,
performance or achievements expressed or implied by such
statements. There can be no guarantee that IC31, IC43, IC47 or any
other potential vaccine candidates will be approved for any
indications in any market or that these vaccines will reach any
particular sales levels. In particular, management's expectations
regarding these vaccines and/or the proprietary cell culture
technology of Novartiscould be affected by, among other things,
unexpected regulatory actions or delays or government regulation
generally; unexpected clinical trial results, including additional
analysis of existing clinical data and new clinical data;
competition in general; the ability of Novartis to obtain or
maintain patent or other proprietary intellectual property
protection; increased government, industry, and general public
pricing pressures; and other risks and factors referred to in the
Novartis AG's current Form 20-F on file with the US Securities and
Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, believed, estimated or expected. Novartis is providing
the information in this press release as of this date and does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.
# # #
Novartis Media Relations
John Gilardi Eric Althoff
Novartis Global Media Relations Novartis Vaccines &
Diagnostics
+41 61 324 3018 (direct) +1-510-923-3301(US direct)
+41 79 596 1408 (mobile) +1-510-387-7604(US Mobil)
john.gilardi@novartis.com
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eric.althoff@novartis.com
e-mail: media.relations@novartis.com
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