UPDATE 1-Intercell sales surge thanks to first vaccine

* Intercell Q2 sales rise 66 percent

* Ixiaro first-half sales 2.9 million euros

* Expects solid full-year revenue growth and profit

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VIENNA, Aug 17 (Reuters) - Austrian biotech group Intercell (ICEL.VI) said on Monday second-quarter revenue surged 66 percent, as expected by analysts, after its first vaccine hit the market and said it predicts a full-year profit.

Intercell got market approval for its Ixiaro vaccine against Japanese Encephalitis this March and struck an exclusive deal with the U.S. Army for the drug, which is distributed with Swiss pharma giant Novartis (NOVN.VX). [ID:nLL194342] [ID:nN30364204]

The deal is expected to raise around 30 million euros in annual revenue for Intercell, analysts estimate. The vaccine has a market potential of $250 million to $350 million.

Intercell said its first product sales in Europe and the United States totalled 2.9 million euros ($4.10 million) in the first six months of the year. The group said it expects to turn a profit this year and solid revenue growth.

Second-quarter revenue was 14.9 million euros, in line with a Reuters poll, while Intercell's net loss of 3.1 million euros was not as bad as expected. [ID:nLC690763]

The group said it expected the phase III clinical study of its vaccine patch against travellers' diarrhoea to start at the beginning of the fourth quarter. The trial was postponed because of the Mexican flu outbreak.

Intercell said it had to delay an interim analysis of its S. Aureus vaccine beyond 2009 because of slow enrollment and the number of infections to date. ($1=.7073 Euro) (Reporting by Boris Groendahl and Sylvia Westall; Editing by Hans Peters)