Washington Editor

Epimmune Inc. and Merck & Co. signed an agreement whereby Merck will evaluate Epimmune's epitopes in connection with its own technology for the development of vaccines.

Epimmune's stock (NASDAQ:EPMN) rose 21.8 percent on the news to close at $1.46, up 26 cents, while Merck's (NYSE:MRK) closed at $58.50, up 32 cents.

Merck, of Whitehouse Station, N.J., will determine activity within the modified epitopes, which are the immunogenic regions of antigens responsible for inducing an immune response.

"The value in understanding epitopes is to target the immune response to appropriately respond to these epitopes, thereby allowing the body to clear infections or other invaders," Michael McClurg, vice president of business development for San Diego-based Epimmune Inc., told BioWorld Today.

McClurg wouldn't elaborate on the indications Merck in interested in, nor would he discuss the number of epitopes included in the deal. However, he did say the platform is vaccine based and that Merck is interested in developing the technology for multiple indications.

Janet Skidmore, a spokeswoman for Merck, told BioWorld Today, "Merck has been making vaccines to meet urgent medical needs for many years, and our commitment to this continues, and one example of that is the agreement with Epimmune."

McClurg and Skidmore would not elaborate on financials of the deal, but Epimmune received an evaluation license fee. The deal gives Merck the option to enter licensing discussions with Epimmune for the development of Epimmune's epitopes for use in vaccines for the treatment of certain diseases.

For Epimmune, the deal is quite meaningful.

"It's important to note that the agreement encompasses our proprietary analogue in modified epitopes, which is core to Epimmune's platform," McClurg said. "I think that speaks for itself in that Merck decided to evaluate these in the context of their technology."

Aside from the Merck deal, Epimmune in mid-February entered a preliminary merger agreement with Anosys Inc., of Menlo Park, Calif., to create a combined company focused on immunotherapeutics and products to treat cancer and infectious diseases. (See BioWorld Today, Feb. 14, 2003.)

The all-stock transaction is pending, said McClurg, who declined to disclose the number of shares involved.

Epimmune previously stated that the combination of its epitope technology with Anosys' exosome delivery technology would create a company positioned to pursue therapeutics that activate antigen-specific immune responses, particularly in cancer vaccines.

The company's internal programs include Phase I/II trials of the EP-2101 therapeutic, a multiple-epitope vaccine in lung and colorectal cancer patients, and ongoing Phase I/II trials of therapeutic vaccines for HIV.

Epimmune is working with Genencor International Inc., of Palo Alto, Calif., on a vaccine program for hepatitis B, hepatitis C and human papillomavirus.