Intercell in €25m finance deal with BB Biotech
09.05.2012 - Austrian biotech company Intercell AG has signed a €25m financing deal with Swiss investor BB BiotechAG.
Vienna – The vaccine maker also said it is in talks with other investors concerning a private stock placement that could total €15m. The investment, through a fully owned subsidiary of BB Biotech AG, consists of a €20m secured loan and a commitment to invest €5m as part of a proposed private share placement. Intercell’s CEO, Thomas Lingelbach, stated: “Following the successful strategic resetting in 2011, this financing marks an important step in the renewal of Intercell as a notable biotech vaccine company. With growing sales from our first product on the market, a diversified pipeline and technology base and a disciplined financial strategy, we are now very well positioned for the next development phase of our company.”
Intercell is trying to get back on track after several product setbacks sparked worries about its pipeline prospects. After a setback in the development of a traveller’s diarrhoea vaccine last year, the new focus of the company is on vaccines preventing nosocomial infections. The secured six-year loan carries a variable interest rate. Intercell will pay BB Biotech royalties on sales revenues from its product Ixiaro, a vaccine for Japanese encephalitis. The €5m equity investment will see BB Biotech subscribe for nearly 2 million Intercell shares for about 2.55 € per share as part of the private placement. According to Intercell, existing shareholders will not get subscription rights for the placement