Intercell buys Iomai Corp, cuts net loss

By Paul Bolding

VIENNA (Reuters) - Austrian vaccine maker Intercell (ICEL.VI) bought Iomai Corp IOMI.O of the United States in a deal worth $189 million and also cut its first-quarter net loss, sending its shares higher.

It said in a statement on Tuesday the net loss was 4.6 million euros ($7.11 million), down 35 percent, while revenue was up 473 percent at 8.6 million.

The company, spending heavily on research and development, made its first annual net profit last year and analysts expect a further profit in 2008.

Its shares were up 4.1 percent at 29.30 euros at 3:54 a.m. EDT (0754 GMT) compared with a rise of 1.1 percent for Austria's blue-chip ATX .ATX index. They have outperformed the ATX by 12.5 percent in the year to date.

Intercell said it would fund the $119 million cash element of the cash-and-shares acquisition from its own reserves.

"Despite higher costs through the acquisition, Intercell also expects to maintain its target of profitability in 2008," it said.

Two analysts polled by Reuters Estimates expected on average a net loss of 6.5 million euros.

Intercell's main product is a vaccine against Japanese encephalitis, which it distributes with its shareholder Novartis (NOVN.VX) of Switzerland.