The new agreement supersedes a previous collaboration agreement entered into by Targeted Genetics, with the International Aids Vaccine Initiative (IAVI) and Columbus Children's Research Institute (CCRI) in 2000, when the parties started working together on the development of an HIV/AIDS vaccine for the developing world.
The first HIV/AIDS vaccine candidate developed under this collaboration has advanced to human clinical trials. This vaccine candidate is being evaluated in clinical trials in Belgium, Germany, India, South Africa, Uganda and Zambia and data from some of these trials is expected to be announced in the third quarter of 2006.
Under the new agreement, Targeted Genetics expects to continue to receive significant funding from IAVI for the continued development of HIV/AIDS vaccines for the developing world. Targeted Genetics also received the rights to utilize the findings from the IAVI-funded program to develop and commercialize HIV/AIDS vaccines for both the developed world and for any additional vaccine candidates.
Among other rights granted under this agreement, IAVI retains the exclusive rights for commercialization in the developing world of any HIV/AIDS vaccine that is developed under the collaboration, and will receive a royalty on income received by Targeted Genetics from the development and commercialization of vaccines. Targeted Genetics will also issue IAVI a small number of shares of its common stock.