Medivir to receive two milestone payments amounting to 17 million euros in the Tibotec HCV collaboration

Medivir to receive two milestone payments amounting to  17 million euros in the
Tibotec HCV collaboration

Medivir (OME: MVIRB SS) is collaborating with Tibotec Pharmaceuticals Ltd to
develop HCV NS3/4A Protease Inhibitors for the treatment of chronic hepatitis C
virus (HCV) infection. 

The drug candidate, TMC435350, recently advanced into phase II of the clinical
trial program. The first phase IIa study was initiated in Europe by Tibotec
Pharmaceuticals Ltd at the end of November.  

Under the terms of the Research Development and License Agreement of November
2004, Medivir are entitled to a number of pre-specified milestone payments.
Medivir has achieved one of the clinical milestones in the agreement and has
thus secured a milestone payment of five million Euro (around MSEK 47). 

The second payment is due because Medivir has opted to decline a contractual
opportunity to obtain from Tibotec, at some point in the future, the marketing
rights for an approved pharmaceutical in the Nordic countries. In return Tibotec
will make a cash payment of 12 million euros (around MSEK 113). 

“This will be our largest ever licensing payment. A robust financial position
will facilitate the creation of a Nordic sales and marketing organization and
strengthen us in coming partnership negotiations. Our goal is to achieve
revenues from sales of licensed pharmaceuticals in the Nordic market in the
coming 12 months”, says Medivir's CEO Lars Adlersson.

For additional information, please contact
Rein Piir, CFO & VP Investor Relations, Medivir +46 8 5468 3123 or +46 708 537
292.

For more on Medivir, please see the company website: www.medivir.se