MERCK AND IDERA AGREE TO VACCINE COLLABORATION

Merck and Idera Pharmaceuticals announced a collaboration to incorporate Idera's toll-like receptor (TLR) agonists into vaccines Merck is developing for oncology, infectious diseases and Alzheimer's disease.

Merck will fund a two-year research and development collaboration with Idera to generate new agonists targeting the TLR 7 and 8 agonists, Merck announced. TLRs function as pathogen sensors in human immune cells, and are used to treat cancer, asthma, allergies and infectious diseases.

Under the agreement, Merck will receive worldwide exclusive rights to some of Idera's agonist compounds targeting the TLR 7, 8 and 9 agonists to use with Merck's therapeutic and prophylactic vaccines. Merck will pay Idera an upfront license fee of $20 million and purchase $10 million of its common stock at $5.50 per share.

Idera will be eligible for milestone payments of up to $165 million if the companies successfully develop vaccines for oncology, infectious diseases and Alzheimer's disease, Merck said. Idera can also receive payments up to $260 million for the development of more vaccines and follow-on indications in the oncology field.

In addition, Idera is entitled to royalties on any commercialized products created in the collaboration, the company said.