Iomai Surges on $189 Million Buyout

Intercell AG announced late Monday a deal to acquire Iomai (IOMI Quote) in a stock and cash transaction valuing the biopharmaceutical company at roughly $189 million.

Austria-based Intercell has agreed to pay $6.60 a share for Iomi -- a 126% premium to the stock's closing price Monday.

The news sent Iomai shares soaring more than 100% in off-hours trading to open up Tuesday $3.29, or 112.7%, higher at $6.21.

The acquisition involves a stock-for-stock exchange for 41% of the Gaithersburg, Md.-based company's shares held by major shareholders (1.7 million Intercell shares), and a $119 million all-cash merger for the remaining outstanding shares.

Intercell, a biotech company that trades on the Vienna Stock Exchange under the symbol ICLL, will finance the $119 million in cash from existing reserves.

At the heart of the deal, Intercell will receive full rights to Iomai's needle-free traveler's diarrhea vaccine, which is expected to enter phase III trials in the first half of 2009. The company said Iomai's vaccine will complement its Japanese Encephalitis vaccine and establish a traveler's vaccine franchise with targeted sales of more than $1 billion a year.

Intercell will also obtain rights to two other clinical and three preclinical programs, including a needle-free influenza vaccine in midstage trials.

Both companies boards have approved the deal, which is expected to close by the end of the third quarter.

Intercell has strategic partnerships with such companies as Novartis (NVS Quote), Merck (MRK Quote), Wyeth (WYE Quote) and Sanofi Pasteur.