Merck Licenses Vical's "Naked" DNA Technology to Deliver Certain Growth Factors
SAN DIEGO--(HealthWire)--Sept. 12, 1997--Vical Inc. (Nasdaq:VICL) announced today the signing of an agreement granting Merck & Co., Inc.
(NYSE:MRK) certain rights to use Vical's ``naked'' DNA technology to deliver certain growth factors. The agreement resulted in an initial payment to Vical of $2
million and has a potential total value of more than $35 million plus royalties if products are successfully developed by Merck using the Vical technology.
The new agreement grants to Merck licenses and options to license Vical's naked DNA technology to deliver growth factors as potential treatments for a range of
applications including revascularization. The agreement marks the first license of Vical's naked DNA technology for potential delivery of a therapeutic protein, and is
the first such agreement since the issuance of Vical's broad patents covering the technology. Vical had previously licensed the technology to Merck and others for
use in vaccines against a total of 13 infectious diseases.
Vical scientists and collaborators discovered that direct administration of naked DNA can result in the expression of the protein encoded by the genetic material and
proposed the application of this discovery to vaccine research. Vical and Merck scientists published the initial demonstration of naked DNA technology in a
preclinical model and have demonstrated its application as a novel vaccination technique in a variety of animal infectious disease models. Merck is currently
conducting early clinical trials of a naked DNA vaccine.
Alain B. Schreiber, M.D., Vical's President and CEO, said, ``Merck has been the leader in developing naked DNA vaccines, and we are delighted that Merck has
decided to broaden its applications for Vical's naked DNA technology. Through this and other potential collaborative agreements, we hope to expand the scientific
and financial potential of this promising platform technology.''
The revascularization regimen would involve administration of specific genes into tissues where disease had restricted blood flow. Administration of the genes may
increase local production of certain growth factors which may stimulate the growth of new blood vessels. The newly formed blood vessels may restore blood flow
to the affected areas. This treatment may be applicable in diseases such as coronary artery and peripheral vascular ischemias.
Vical Incorporated is focused on the development of gene-based pharmaceutical product candidates for human therapy. Vical's gene-based therapeutic approach
may offer safer and more cost-effective alternatives for many diseases, including cancer, infectious diseases and metabolic disorders.
This press release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set
forth in the forward-looking statements, including whether any product candidates will be discovered or, if discovered, whether any will be shown to be safe and
efficacious in clinical trials, the timing of clinical trials, whether Vical will receive any additional funds under the agreement with Merck, and additional risks set forth
in the Company's filings with the Securities and Exchange Commission. Actual results may differ materially from those projected. These forward-looking statements
represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking
statements. |
