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Published on 4/6/2006 in the Prospect News Biotech Daily.

Intercell, Kirin to develop antibodies for Streptococcus pneumoniae infections

By Lisa Kerner

Erie, Pa., April 6 - Intercell AG said it has entered into a strategic alliance with Tokyo-based Kirin Brewery Co. Ltd. to develop human monoclonal antibodies against severe infections caused by Streptococcus pneumoniae.

Under the agreement, Kirin obtains global rights to develop and commercialize antibodies directed against antigens that have been detected by Intercell's proprietary Antigen Identification Program, which identifies antigens that are protective in vaccines.

The two companies will collaborate in the preclinical development of the product, and Kirin will be responsible for the clinical development, registration and marketing of the product, according to a news release.

Intercell is eligible to receive milestone payments totaling roughly €40 million, including an upfront payment of €4 million, plus royalties on future net sales of the product and compensation for development contributions.

"This is just the first step in a broad application of our technology in this growing and increasingly important field of modern medicine," Intercell chief executive officer Gerd Zettlmeissl said in the release.

"We believe this will generate additional revenues for our company. Our partner Kirin has an outstanding record in the global development and commercialization of biological products and an exceptional commitment to the field of infectious diseases."

According to the analyst firm Datamonitor, the therapeutic antibody market is expected to triple by 2010, due in part to the commercialization of a number of humanized and fully human antibodies. Global sales of the monoclonal antibodies market increased by 48% in 2004 to more than €7.8 billion.

Located in Vienna, Austria, Intercell develops vaccines for the prevention and treatment of infectious diseases.


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