GSK and Intercell to develop patch-based vaccines

GlaxoSmithKline Biologicals (GSK) is to take a stake in Austrian vaccine producer Intercell to develop needle-free, patch-based vaccines.

GSK will make an up-front cash contribution of Euro 33.6m (£30m) and an equity investment of up to â"šÂ¬84m (£75m) in Intercell through staggered share purchases of up to 5% of the company.

The deal will include Intercell's candidate vaccine for travellers" diarrhoea (TD), currently in Phase III clinical trials and a potential single application pandemic influenza vaccine, which is in Phase II clinical trials, as well as the use of the patch technology for other vaccines in GSK's portfolio.

"This novel technology has real potential to change the way vaccines are delivered in the future. GSK has an extensive portfolio of vaccines and we believe needle-free vaccination could offer benefits such as simplified administration and increased compliance," said Jean Stephenne, president of GSK Biologicals.

Intercell chief executive Gerd Zettimeissl added: "We can pursue our business strategy of creating significant shareholder value as an independent company while continuing to develop one of the most innovative product pipelines in the industry."

Some 20 million international travellers develop TD each year while visiting endemic areas in Asia, Africa and South America. Currently, there is no vaccine available to prevent this.

Intercell's single application pandemic Influenza vaccine will enhance the immune response to existing injected pandemic influenza vaccines. If successful, the patch could expand limited vaccine supplies by allowing fewer or lower doses of vaccine and increasing response time.