Merck has struck a deal to put Idera's toll-like receptor agonists to work in its new vaccine programs for oncology, Alzheimer's and infectious diseases. Idera gains $20 million up front for the development pact along with another $10 million equity investment at $5.50 a share. The big payoff would come if Merck can develop vaccines in all three fields, with $165 million in scheduled milestones. Another $260 million in milestones will be paid for successful development of follow-on therapies. Toll-like receptors recognize different microbial products present in pathogens such as bacteria, viruses and parasites, and mount an appropriate immune response against the foreign invaders.
"We believe that vaccines combined with TLR-targeted compounds offer great promise in treating and preventing serious diseases, and look forward to integrating Idera's TLR agonists into our vaccine development programs," said Peter S. Kim, president of Merck Research Laboratories.
- read the AFX report on the deal