Novartis in wide pact with Intercell

07/02/07 - newratings.com

LONDON, July 2 (newratings.com) – Novartis AG (NOT) Monday announced that it had agreed to buy a stake, licenses and license options from Austrian biotech firm Intercell for €270 million.

The Swiss drug giant will buy 4.8 million new Intercell shares for €150 million. Intercell said this would raise Novartis’ stake in the company to about 16% from the current 6%. Additionally, Novartis will license more than ten projects in preclinical and early-stage development. Novartis will pay an upfront €120 million for these licenses. Novartis will also have exclusive rights on the development of Intercell's IC31 adjuvant for influenza, and will have royalty rights on the sales performance going ahead.