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Intercell Plunges After Diarrhea Vaccine Fails Trials

Intercell AG plunged 41 percent in Vienna trading after a vaccine patch to prevent diarrhea in travelers failed in two patient studies, prompting the company to forecast a wider loss.

The 2010 loss will be “substantially higher” than the 40 million euros ($52.8 million) Intercell forecast last month, the Vienna-based company said in a statement late yesterday. Intercell said it expects to write down as much as 167 million euros of intangible assets for the project and doesn’t expect to receive milestone payments from GlaxoSmithKline Plc, the patch’s co-developer. The total loss for 2010 may reach around 200 million euros, Chief Executive Officer Gerd Zettlmeissl said in an interview with Boerse-Express newsletter.