Organization

9 Months Ended

Sep. 30, 2011

Organization, Collaboration and License Agreements [Abstract]

Organization

(1) Organization

     Idera Pharmaceuticals, Inc. (“Idera” or the “Company”) is a clinical stage biotechnology company engaged in the discovery and development of novel DNA- and RNA- based drug candidates. The Company is developing drug candidates that are designed to modulate immune responses mediated through Toll-like Receptors (TLRs). TLRs are specific receptors present in immune system cells. Using its chemistry-based approach, Idera has created synthetic nucleic acid-based compounds that are targeted to TLRs 3, 7, 8, and 9. The Company believes that by modulating immune responses mediated through TLRs, it can develop compounds to treat a broad range of diseases.

          The Company is focusing its internal development efforts on TLR-targeted compounds for autoimmune and inflammatory diseases. The Company’s TLR research and development pipeline also includes partnered programs for the treatment of cancer, with Merck KGaA, and for vaccine adjuvants, with Merck Sharp & Dohme Corp., which is referred to herein as Merck, as well as proprietary programs for the treatment of infectious diseases, respiratory diseases, hematologic oncology, and additional vaccine adjuvants. Merck KGaA and Merck are not related.

          The Company is also evaluating gene silencing oligonucleotides, or GSOs, for the purpose of inhibiting the production of disease-associated proteins. GSOs are novel chemical structures that Idera has shown in preclinical models selectively bind to targeted messenger RNA and microRNA and thereby inhibit protein production.

     During the third quarter of 2011, the Company re-assessed and prioritized its drug development programs. Based on this prioritization, Idera is focusing its internal development efforts on TLR-targeted compounds for autoimmune and inflammatory diseases and advancing its GSO technology. In addition, Idera has discontinued further development of IMO-2125, which had been its lead drug candidate for the treatment of hepatitis C virus (HCV), and decided to advance its TLR-targeted programs in infectious diseases, respiratory diseases, hematologic oncology, and additional vaccine adjuvant applications only through partnerships with third parties.

     At September 30, 2011, the Company had an accumulated deficit of $370.3 million. The Company expects to incur substantial operating losses in future periods. The Company does not expect to generate significant product revenue or royalties until it successfully completes development and obtains marketing approval for drug candidates, either alone or in collaborations with third parties, which it expects will take a number of years. In order to commercialize its drug candidates, the Company needs to complete clinical development and to comply with comprehensive regulatory requirements. In 2011, the Company expects that its research and development expenses will be lower than its research and development expenses in 2010 reflecting the completion of multiple Phase 1 clinical trials in 2010, delays in initiating clinical trials planned for 2011, and the discontinuation of the development of IMO-2125 and other compounds in the Company’s research and development pipeline.

     The Company had cash, cash equivalents, and investments of $19.1 million at September 30, 2011. The Company believes that its existing cash, cash equivalents, and investments, together with the proceeds raised from a private placement of its securities on November 4, 2011 (see note 16), will be sufficient to fund its operations at least into the second quarter of 2013 based on its current operating plan. The Company will need to raise additional funds in order to operate its business beyond such time. Additional financing may not be available to the Company when it needs it or may not be available on favorable terms.

     The Company is subject to a number of risks and uncertainties similar to those of other companies of the same size within the biotechnology industry, such as uncertainty of success and timeliness of development, including clinical trial outcomes in internal and collaborative programs, uncertainty of funding, and history of operating losses.