A lipophilic disaccharide derivative of muramyl dipeptide (MDP) with strong immunostimulating activity and used as a vaccine adjuvant. MDP, a component of bacterial cell wall, is the minimum chemical structure required for macrophage activation. Due to MDP's toxicity and short duration of action, theramide was developed with improved stability, and can be administered without a liposome carrier. Theramide stimulates macrophage activity, which in turn potentiates other immune responses, including the release of proinflammatory interleukins and tumor necrosis factor alpha (TNF alpha). The release of these cytokines further augments the activation of cellular and humoral immune system.