Intercell AG has signed an exclusive agreement with Novartis AG for the marketing and distribution of Intercell's vaccine candidate to prevent Japanese Encephalitis, in Japan and Korea. This expands the commercialization agreement between Intercell and Novartis to these territories, which previously were not covered by the initial marketing and distribution agreement for Intercell's Japanese Encephalitis vaccine signed in 2006. Under the terms of this agreement, Novartis receives the exclusive marketing and distribution rights in Japan and Korea and obtains a distribution margin on all product sales in these territories. Additional financial details were not disclosed.

"Japanese Encephalitis is endemic to Japan and Korea and poses a significant risk, particularly to children," said Gerd Zettlmeissl, chief executive officer of Intercell. "It was a priority for Intercell to identify a very strong marketing partner for these markets, where the disease is a major public health threat and we are convinced that Novartis - with its global reach - is ideally suited."

Intercell's novel JE vaccine is a purified, inactivated vaccine for active immunization against the Japanese Encephalitis virus.