SAN DIEGO--(BUSINESS WIRE)--Nov. 4, 1997--Vical Inc.
(NASDAQ:VICL) announced today the signing of an agreement granting
Merck & Co., Inc. (NYSE:MRK) certain rights to develop and market
therapeutic vaccines against the human immunodeficiency virus (HIV) and
the hepatitis B virus (HBV) using Vical's patented "naked" DNA
technology. Under the agreement, Merck is making an investment of
$5 million in Vical common stock at a premium over fair market
value. If products are successfully developed by Merck using the
Vical technology, Vical may also receive up to $18 million in
milestone payments, plus royalties on product sales. In addition,
Vical may have the option under certain conditions to co-promote the
products in the United States.
The new agreement grants to Merck exclusive worldwide rights to
use Vical's proprietary naked DNA technology for therapeutic
vaccines against HIV and HBV. Vical had previously licensed the
technology to Merck and others for use in the development of
preventive vaccines including HIV and HBV. Merck also holds a
license to use the technology for a therapeutic vaccine against the
human papilloma virus (HPV). Preventive vaccines prime the body's
immune system to respond to potential future infections by foreign
organisms. Therapeutic vaccines trigger or boost the body's immune
system to respond to existing infections by foreign organisms.
Alain B. Schreiber, M.D., Vical's President and CEO, said, "We
are pleased that Merck has expanded its commitment to naked DNA
technology with these new therapeutic vaccine applications. We are
gratified to count Merck among our shareholders and to potentially
benefit from an opportunity to co-promote important products in
the United States."
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
preventive naked DNA vaccine against the influenza virus.
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.
CONTACT: Vical Incorporated
Alan R. Engbring, Director, Investor Relations,
619/453-9900
or
Robert H. Zaugg, Vice President, Business Development,
619/453-9900
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL
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