Vaccines are composed of one or more antigens and may contain one or more adjuvants in an appropriate formulation. The function of adjuvants is to enhance immune recognition of the antigens and increase the ability of the immune system to make antigen-specific antibodies. The most commonly used adjuvants are salts of aluminum.
Agonists of TLRs induce immune responses that may be appropriate for use as adjuvants in vaccines. Idera has identified novel compounds which act as agonists for TLRs 7, 8, and 9.
In December 2006, Idera entered into an exclusive license and research collaboration agreement with Merck to research, develop, and commercialize vaccine products containing Idera’s TLR agonists. Under the terms of the agreement, Idera granted Merck worldwide exclusive rights to a number of its TLR7, 8 and 9 agonists for use in combination with Merck’s therapeutic and prophylactic vaccines under development in the fields of oncology, infectious diseases, and Alzheimer’s disease. There is no limit to the number of vaccines to which Merck can apply Idera’s agonists within these fields.
Idera also agreed with Merck to engage in a two-year research collaboration to generate novel agonists targeting TLR7 and TLR8 that incorporate both Merck and Idera chemistry for use in vaccines in the defined fields. This collaboration may be extended by Merck for two additional one-year periods.
Under the terms of the agreement:
- Merck paid Idera a $20.0 million upfront license fee;
- Merck purchased $10.0 million of Idera common stock at $5.50 per share;
- Merck agreed to fund the research and development collaboration;
- Merck agreed to pay Idera described milestone payments;
- Merck agreed to pay Idera royalties on net product sales of vaccines using Idera's TLR agonist technology that are developed and marketed.
In May 2008, Idera announced that, under this collaboration, a preclinical milestone was achieved with one of its novel TLR9 agonists used as an adjuvant in cancer vaccines. As a result, Idera is eligible to receive a milestone payment from Merck & Co.