Biotech Values

[HobGlobulin]

Toll(-Like Receptor) Road: A Dead End?

On September 12, 2005, Idera Pharmaceuticals changed its name from Hybridon to announce its renunciation of antisense and its complete devotion to TLRs. The company seemed moribund until December 2006 when it entered into an exclusive license and research collaboration with Merck & Co, Inc.

For Merck's exclusive worldwide rights to some number of TLR agonists to be used in Merck vaccines in the fields of oncology, infectious diseases and Alzheimer's, Merck

paid Idera $20 million upfront
bought $10 million of Idera stock
agreed to fund the research and development collaboration

as well as the payment of milestones and royalties.


On April 12, 2007, Merck non-exclusively licensed COLY's VaxImmune, a TLR9 agonist, as a vaccine adjuvant for use in Merck vaccines for certain infectious diseases and Alzheimer's. Merck also had an option to add uses to the license. Merck paid $4 million upfront and committed to milestone payments up to $33 million plus royalties.

Is it worth speculating why Merck would do the follow-up deal with COLY or is the amount of money involved just too inconsequential?

Hob