Idera Pharmaceuticals, Inc., a clinical stage biotechnology company, engages in the discovery and development of synthetic DNA- and RNA- based drug candidates. The company is in the process of developing drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors (TLRs). The company is also evaluating gene silencing oligonucleotides (GSOs), which inhibit the production of disease-associated proteins by targeting RNA. Autoimmune and Inflammatory Disease Program The company is in the process of developing IMO-3100, an antagonist of TLR7 and TLR9, for the treatment of psoriasis. It intends to conduct a Phase 2 clinical trial of IMO-3100 in adult patients with moderate to severe plaque psoriasis, randomized into three arms over a four-week treatment period. Cancer Program IMO-2055, an agonist of TLR9, is in clinical development for the treatment of cancer. In November 2011, the company reacquired rights to IMO-2055 from Merck KGaA, Darmstadt, Germany. IMO-2055 can be developed for use as an immune modifier in combination with targeted anticancer agents. Gene Silencing Oligonucleotide Technology Platform The company’s GSOs are single-stranded RNA or DNA constructs that are complementary to targeted mRNA sequences of therapeutic interest. Additional Programs In addition to clinical programs in autoimmune and inflammatory diseases and in cancer, the company has identified TLR drug candidates for applications in the treatment of infectious diseases, respiratory diseases and hematological malignancies, and TLR3 agonists for use as vaccine adjuvants. Collaborations Cancer — Merck KGaA: In 2007, the company entered into a worldwide license agreement with Merck KGaA to research, develop, and commercialize products containing TLR9 agonists, including IMO-2055, for the treatment of cancer, excluding cancer vaccines. Merck KGaA refers to IMO-2055 as EMD 1201081. Merck Sharp & Dohme Corp. (Merck): In 2006, the company entered into a license and research collaboration agreement with Merck to research, develop and commercialize vaccine products containing TLR7, 8, and 9 agonists in the fields of cancer, infectious diseases and Alzheimer’s disease. Research and Development As of December 31, 2011, the company has spent approximately $18.0 million on research and development activities. Patents and Proprietary Rights As of March 1, 2012, the company owned 78 U.S. patents and U.S. patent applications and 256 patents and patent applications throughout the rest of the world for TLR-targeted immune modulation technologies. These patents and patent applications include novel chemical compositions of matter and methods of use for immune modulatory compounds, including IMO-2055, IMO-2125, IMO-2134, IMO 3100, IMO-4200, and IMO-8400. As of March 1, 2012, it also owns four U.S. patent applications and one corresponding worldwide patent application for GSO compounds and methods of their use. Competition The company’s principal competitors developing TLR-targeted compounds for autoimmune and inflammatory diseases include Dynavax Technologies Corporation, with its collaborator, GlaxoSmithKline plc, and for cancer treatment include Pfizer, Inc., and VentiRx Pharmaceuticals. History Idera Pharmaceuticals, Inc. was founded in 1989.