Iomai’s late-stage diarrhea vaccine fortifies firms’ travelers-related pipeline.

Intercell will acquire Iomai for $6.60 per share representing a fully diluted equity value of approximately $189 million. The transaction has been approved by both boards.

Intercell will gain full rights to Iomai’s late-stage travelers’ diarrhea vaccine, which is based on Iomai’s needle-free patch delivery vaccine technology and has shown positive interim Phase II efficacy data. The travelers’ diarrhea vaccine is expected to enter Phase III trials in the first half of 2009.

If approved, Iomai’s travelers’ diarrhea vaccine will be complementary with Intercell’s Japanese Encephalitis vaccine for which Intercell expects market approvals in the U.S., Europe, and Australia in 2008. Together, both vaccines create an attractive traveler’s vaccine franchise, according to the companies.

Intercell will also gain full rights to two additional clinical and three preclinical programs under development, the most advanced being an immunostimulant vaccine patch in Phase II for pandemic influenza.

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