Intercell gets $1 million from Merck for vaccine candidate

Intercell AG, an Austrian biotechnology company , said it has received a $1 million milestone payment from Merck & Co, for progress in the development of a bacterial vaccine candidate.

The vaccine candidate was licenced from Intercell under a collaboration and license option agreement signed in May 2004. The company didn’t provide any further information about the research.

Under the agreement, Intercell applied its technology to identify relevant antigens directed towards a specific bacterial target. Both parties agreed then Intercell would receive upfront, license, and milestone payments for a vaccine product. Intercell would also receive additional payments if Merck exercises the option for an antibody product plus Intercell would be entitled to royalty payments on product sales. In return Merck would receive exclusive worldwide rights to commercialize any products that may be developed under the agreement.