Merck. Dynavax in hepatitis B vaccine deal

NEW YORK, Nov 1 (Reuters) - Merck & Co. (MRK.N) and Dynavax Technologies (DVAX.O) said on Thursday they agreed to jointly develop an experimental hepatitis B vaccine, which is in late-stage clinical trials.

In the deal, Merck receives worldwide rights to the vaccine, Heplisav, and will fund vaccine development and be responsible for commercialization.

Dynavax will receive an initial payment of $31.5 million, and will be eligible to receive up to $105 million in payments should the product reach various development and sales milestones, as well as royalties. (Reporting by Lewis Krauskopf)