Ebb & Flow

Investors gave a cool response to Intercell’s news that it had signed a deal covering its Japanese encephalitis vaccine with Novartis (NVS; SWX:NOVN). The agreement includes milestones up to E37 million ($46.7 million) split almost equally between final Phase III data and securing U.S. and EU regulatory approvals. The first milestone is expected this year, while the approvals are anticipated in 2007 and 2008, respectively.

NVS’s rights cover the U.S., Europe and markets in Asia and Latin America not covered by other agreements. ICLL retained the right to market JEV to military markets. The pharma also received first negotiation rights to four ICLL programs, including a therapeutic hepatitis C vaccine. ...