Vical Incorporated agreed to grant Merck & Co., Inc. renewable options for rights to use Vical's patented non-viral gene delivery technology for additional cancer targets. In exchange, Vical has obtained non-exclusive, sublicenseable rights to use the technology for vaccines against HIV, giving both companies freedom to operate in the field. Merck also has a fixed-term option to exclusively sublicense from Vical electroporation-enhanced delivery technology for use with HIV vaccines, on terms to be negotiated.

"These options allow Merck to further expand their cancer program using our technology," Vijay B. Samant, Vical's President and Chief Executive Officer said adding, "Merck's exercise of the option for the additional targets would result in an option exercise payment to Vical, and further development may lead to milestone and royalty payments, along with an opportunity for co-promotion. Earlier this summer, Merck exercised three cancer vaccine options triggering a payment of $3.0 million."