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Biotech / Medical : VICL (Vical Labs) -- Ignore unavailable to you. Want to Upgrade?

To: tonyt who wrote (411)	11/4/1997 4:59:00 PM
From: tonyt	Read Replies (1) \| Respond to of 1972

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 Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1997, Business Wire