Idera gets a regulatory clearance for Merck deal

Biotechnology company Idera Pharmaceuticals Inc. said today that it passed a regulatory antitrust review and will move ahead on a licensing deal with Germany's Merck KGaA.

Cambridge-based Idera is licensing cancer treatment applications for two lead drug candidates to Merck. The regulatory clearance triggers an upfront fee of $40 million to Idera, which can also receive development milestone payments worth up to $381 million and royalties on future sales.

The deal excludes Idera's cancer vaccines, which are a separate class of therapies that work by building up the immune system's defenses in order to fight off cancer. Idera already has a deal with Whitehouse Station, N.J.-based Merck & Co. covering cancer vaccines.

Shares of Idera rose 15 cents to $10.50 in morning trading on the Nasdaq Stock Market. (AP)