Dragon, Bill: I am pasting a few relevant sections from Vical's most recent 10K below. Just let me dig out the chronology of the deals:
May 1991 Merck
Nov 1993 Naval Medical Research Institute (NMRI) for malaria
Sept 1994 Pasteur Merieux Connaught (PMC) for malaria and other targets, but the former still connected with NMRI; see details below.
So the Merck and PMC (malaria) collaborations differ in at least the aspect that the latter involves a third party (NMRI <= the Navy <= the US government). Also, it makes sense in the context of biotech "history" that early collaborations are taken over close to 100% by the larger pharma partner, while later ones move towards the direction of equal partnerships (PMC's not quite there, of course).
Comments, clarifications, corrections, other interpreations are welcome.
****** MERCK ****
Merck & Co., Inc. In May 1991, the Company entered into a research
collaboration and license agreement with Merck (the "Merck Agreement") to
develop vaccines to prevent infection and/or disease in humans utilizing
Vical's intramuscular delivery technology. In connection with the Merck
Agreement, Vical has granted Merck a worldwide exclusive license to preventive
vaccines using Vical's technology against seven human infectious diseases:
influenza, HIV, herpes simplex, hepatitis B, hepatitis C, human papilloma and
tuberculosis. In 1996, Merck initiated a Phase I clinical trial with a
preventive DNA vaccine candidate for influenza and is expected to present
initial results in 1997. Merck has indicated that a preventive DNA vaccine
candidate for herpes simplex may enter a clinical trial in 1997. In connection
with the Merck Agreement, Merck has paid the Company $11.6 million to date at
December 31, 1996. In connection with certain of these payments, Vical was
required to pay 10 percent of certain payments received by the Company under
the Merck Agreement to Wisconsin Alumni Research Foundation ("WARF"). A small
portion of any future milestone or royalty payments received by Vical under the
Merck Agreement would also be owed to WARF.
In May 1992, Vical entered into a separate agreement with Merck
pursuant to which the Company granted Merck a worldwide exclusive license to
certain Vical technology to develop vaccines for the prevention of a veterinary
infectious disease.
**** Pasteur Merieux *****
Pasteur Merieux Connaught. In September 1994, the Company entered
into a collaborative agreement with the vaccine manufacturer PMC (the "PMC
Agreement") covering the use of Vical's proprietary naked DNA technology for
developing up to five new vaccine products. The following vaccine targets are
included: (i) cytomegalovirus (CMV); (ii) respiratory syncytial virus (RSV);
(iii) Lyme disease; (iv) helicobacter pylori; and, (v) malaria. With respect
to malaria, see "--Research Institutions--Naval Medical Research Institute."
In 1996, a sixth option target, herpes zoster, was added. The PMC Agreement
includes a research collaboration and options
for PMC to take exclusive licenses to Vical's naked DNA vaccine technology for
each of the six vaccine targets. To maintain the options, PMC is required to
pay Vical annual research payments. For licensed options, PMC will have to
make milestone and royalty payments to Vical. PMC has exercised four such
options at December 31, 1996, and extended an option. PMC will make research
payments to Vical for expenses incurred by Vical in performing certain clinical
and preclinical work. Through December 31, 1996, Vical had received $5,950,000
under this agreement. If Vical were to receive milestone or royalty payments
from PMC, Vical would be required to pay 10 percent of certain payments to
WARF. See "- -Research Institutions--Wisconsin Alumni Research Foundation."
** Naval Medical RI ****
Naval Medical Research Institute. In November 1993, Vical entered
into a Cooperative Research and Development Agreement ("CRADA") with the Naval
Medical Research Institute ("NMRI"), a laboratory operated under the command of
the United States Navy, for research in the area of vaccines for the prevention
of malaria. Under the CRADA, the Company and NMRI are each contributing
research materials and expertise towards the appropriate testing of candidate
DNA-based malaria vaccines in laboratory animals and, if warranted, human
subjects. Each party funds its own activities. Vical has licensed the right
to commercialize any vaccine product that emerges from research under the CRADA
to PMC, subject to the right of the U.S. government to use any such vaccine for
government purposes only. In September 1995, Vical and NMRI were awarded a
grant from the Department of Defense that was to provide up to $1,000,000 per
year for up to three years to support further development of a malaria vaccine
based on Vical's naked DNA vaccine technology. The agreement commenced in the
first quarter of 1996. As a result of subsequent federal budget cuts, funding
for the grant has been capped at $1,000,000 total and the agreement is expected
to end June 30, 1997. |
