Vaxxas partners with Merck on Nanopatch needle-free vaccine patch

Vaxxas, the Australian start-up commercialising promising needle-free vaccine delivery technology Nanopatch, has won its first big pre-licensing deal.

The company has signed an evaluation and research collaboration deal with pharmaceutical giant Merck.

Merck will pay Vaxxas both an upfront fee and ongoing funding to conduct research into the potential of using Nanopatch for a Merck vaccine candidate. Vaxxas has granted Merck a license to the platform for the commercial production of this candidate.

Merck also has the option of using the platform for vaccine candidates in up to two more fields, in exchange for additional payments. The financial terms also cover milestone payments and royalties for any vaccine products arising from the contract.

The Nanopatch technology has won several awards since its inception at the Australian Institute for Bioengineering and Nanotechnology (AIBN). The Institute's professor Mark Kendall first conceived of the technology in 2003.

The patch has multiple potential benefits compared to vaccination delivery technologies including injections. These include a much lower dosage, pain-free delivery and the ability to store vaccines without refrigeration.

Vaxxas was formed in August 2011 to commercialise the technology, after attracting $15 million in venture capital to use as seed funding.

Two major investors in the funding round were Australia's OneVentures and Brandon Capital, both of which are supported by the federal government's Innovation Investment Fund (IIF).