Vaxxas Initiates Program With Merck to Optimize Delivery of Next Generation Vaccines Utilizing Novel Mechanism for Immune System

  Vaxxas Initiates Program With Merck to Optimize Delivery of Next Generation
  Vaccines Utilizing Novel Mechanism for Immune System Activation

   Collaboration to Evaluate, Develop and Commercialize Vaxxas’ Innovative
                     Nanopatch™ Vaccine Delivery Platform

Business Wire

CAMBRIDGE, Mass. -- October 09, 2012

Vaxxas, a biotechnology company commercializing a novel vaccine delivery
platform, today announced the initiation of a research collaboration with
Merck, known as MSD outside the United States and Canada. The collaboration
will evaluate Vaxxas’ proprietary Nanopatch™ platform that induces robust
immune system activation by targeting vaccine to the abundant immunological
cells immediately below the surface of the skin. In addition, Vaxxas has
granted Merck an exclusive license for the Nanopatch platform for commercial
production of an undisclosed vaccine candidate.

Under the agreement, Merck will pay an upfront fee and will provide funding to
Vaxxas to conduct research evaluating the potential of using Vaxxas’ Nanopatch
platform for a Merck vaccine candidate. Vaxxas will be eligible to receive
additional payments associated with Merck exercising its option to the
Nanopatch platform for the development and commercialization of vaccine
candidates for up to two additional fields. Vaxxas will also be eligible to
receive payments upon achievement of development milestones and regulatory
approvals by any Merck vaccine candidate that uses the Nanopatch platform as
well as royalties on sales of such Merck vaccine products.

“We are pleased to collaborate with Merck, a recognized global leader in
vaccines, to apply our technology with their expertise in vaccines research,”
said David L. Hoey, CEO of Vaxxas. “This collaboration underscores the
potential of our Nanopatch platform to effectively deliver advanced vaccines
and supports our strategic approach of partnering with leaders in vaccine
development.”

About the Nanopatch™ Technology Platform

The Nanopatch™ technology platform is a novel approach to improve performance
of existing vaccines and to create new advanced vaccines designed to achieve
greater efficacy and safety. Application of the Nanopatch to the skin is a
pain-free method of vaccine delivery and has been shown in preclinical studies
to result in a protective immunogenic response, using as little as one
hundredth of the dose required by conventional needle and syringe. The robust
immune response inherent to Nanopatch-delivered vaccines may also enable
reduction or elimination of additives such as adjuvants. In addition,
proprietary dry-coating of vaccine to the Nanopatch may eliminate the need for
refrigeration during storage and transportation.

About Vaxxas

Vaxxas is a privately-held biotechnology company focused on enhancing the
performance of existing and next generation vaccines with its proprietary
Nanopatch™ technology platform. Vaxxas’ Nanopatch contains an ultra-high
density array of projections – invisible to the naked human eye – that are
dry-coated with vaccine. Application of the Nanopatch to the skin is pain free
and rapidly delivers the vaccine to the abundant immune cell population
immediately below the skin surface. In a wide range of preclinical studies
Nanopatch delivery of vaccine achieves equivalent protective immunity as the
needle and syringe – but with only one hundredth (1/100^th) of the dose. It
has also been shown that Vaxxas’ proprietary dry-coating technology can
eliminate the need for vaccine refrigeration during storage and transportation
– removing the resource burden of maintaining the “cold chain”. Leveraging
both the potent immunogenic response and thermostability, Vaxxas is applying
its technology to improve the performance of vaccines, with initial
applications targeting infectious disease and oncology.

Vaxxas’ Nanopatch technology originated from Professor Mark Kendall's research
group at the Australian Institute of Bioengineering and Nanotechnology at The
University of Queensland, the Australian university. The University of
Queensland’s main commercialization company, UniQuest, led the initial
commercialization of the Nanopatch technology prior to the creation of Vaxxas
in 2011. Vaxxas is backed by a strong group of venture investors including
OneVentures, Brandon Capital, Healthcare Ventures, and the Medical Research
Commercialisation Fund.

The company is initially focused on partnering with leading vaccine companies
who are seeking a needle-free, differentiated, high performance, cost
effective and safe vaccine delivery platform. For more information, please
visit www.vaxxas.com.

Contact:

The Yates Network
Kathryn Morris, 845-635-9828
kathryn@theyatesnetwork.com