In exchange, Vical has obtained non-exclusive, sub-licensable rights to use the technology for vaccines against HIV, giving both companies freedom to operate in the field.
“These options allow Merck to further expand their cancer program using our technology,” said Vijay Samant, Vical’s president and CEO. “Merck’s exercise of the option for the additional targets would result in an option exercise payment to Vical, and further development may lead to milestone and royalty payments, along with an opportunity for co-promotion.”
Merck also has a fixed-term option to exclusively sublicense from Vical its electroporation-enhanced delivery technology for use with HIV vaccines.
Vical is to develop its electroporation-enhanced delivery technology in collaboration with the US National Institute of Allergy and Infectious Diseases (NIAID). Vical has the option to secure exclusive commercialization rights to technology developed as part of this collaboration.