Merck, Moderna to develop mRNA-based antiviral vaccines and passive immunity therapies

The collaboration comes with the possibility of a one-year extension and will be focused on the development of new mRNA-based treatments and vaccines against four undisclosed viruses.

As part of the partnership, Moderna’s work will be carried out by its subsidiary Valera, a venture focused on the development of mRNA vaccines and therapeutics to fight infectious disease.

Merck Research Laboratories president Dr Roger Perlmutter said: "By combining Merck’s strength in vaccine and antiviral therapeutic development with Moderna’s mRNA Therapeutics technology we are well positioned to develop differentiated candidates with the potential to provide meaningful benefit to patients."

Under the terms of the agreement, an upfront cash payment of $50m will be made to Moderna by Merck to use the granted licenses to commercialize five product candidates, and will make a $50m equity investment in Moderna.

The payments will be in addition to the $450m financing from other investors. Moderna will be eligible for undisclosed per-product development and commercial milestones under the license as well as tiered royalties on commercial sales.

Merck will lead the discovery and development of candidates and commercialization of any products resulting from this license and collaboration agreement, while Moderna will design and synthesize the messenger RNA product candidates directed against selected targets.

Besides this arrangement, Moderna has strategic agreements that are currently underway with Alexion Pharmaceuticals for rare diseases, AstraZeneca in cardiovascular disease and some areas of oncology, and the Defense Advanced Research Projects Agency (DARPA) in biodefense.