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GEN News Highlights : Dec 8, 2006

Coley and GSK Amend VaxImmune Agreement

Updated arrangement changes some co-exclusive licenses to nonexclusive and a $17.4 million reduction in milestone payments.

Coley Pharmaceutical amended its strategic alliance license agreement with GlaxoSmithKline (GSK) for the use of Coley's VaxImmune™ vaccine adjuvant product in the development of certain infectious disease vaccines. As a result, Coley will be able to enter into additional nonexclusive licenses with other vaccine developers for the use of VaxImmune in infectious disease vaccines.

Coley and GSK originally entered into a worldwide co-exclusive license for the use of Coley's VaxImmune vaccine adjuvant compound in certain therapeutic and prophylactic vaccines for infectious diseases in December 1998. The amendment enables Coley to license VaxImmune for use in virtually all infectious disease vaccines.

There also was an adjustment to the financial terms, including a $17.4 million reduction in the potential regulatory and development milestones to be earned by Coley under the original $79.3-million infectious disease agreement.

VaxImmune is a toll-like receptor 9 (TLR9) agonist designed to induce both an enhanced antibody response and a potent killer T-cell immune response to infection or tumors to achieve and sustain a clinical response without compromising safety.