Medivir enters co-promotion agreement with GlaxoSmithKline (GSK)

Medivir enters co-promotion agreement with GlaxoSmithKline (GSK)

Medivir has today entered into a co-promotion agreement with the Swedish
subsidiary of the global pharmaceutical company GlaxoSmithKline. The agreement
provides Medivir the right to co-promote some of GSK's products on the Swedish
market.  

”The agreement with GSK is an important first step in establishing Medivir as a
pharmaceutical company in the Nordic market. It means that Medivir can begin to
build a competent and experienced sales and marketing organisation. The fact
that one of the pharma industry's most prominent companies has selected Medivir
as a marketing partner is of great significance and demonstrates Medivir's
potential to enter similar arrangements with other companies”, says Stefan
Mårtensson, Vice President Sales & Marketing. 

Products covered by the Agreement
The products covered by the agreement include GSK's entire dermatology
portfolio, certain anti-infective products and smoking cessation aid Zyban. The
dermatology portfolio includes Betnovat, one of the Swedish market's leading
products for the treatment of eczema and psoriasis. Among the anti-infective
products is Relenza, used in the treatment and prophylaxis of influenza. The
agreement principally embraces products which are well known and well
established on the Swedish market. An exception is Altargo, a brand new
antibacterial ointment for the treatment of impetigo and infected small wounds.
The total turnover of the relevant products was approximately SEK 53 million in
2007.

The economic significance of the Agreement 
The agreement with GSK provides that Medivir commits the required personnel and
economic resources to successfully market the relevant products. The magnitude
of Medivir's revenue from the agreement is based on the degree that future sales
exceed an agreed baseline. A significant proportion of revenues over the
baseline are retained by Medivir. Medivir's expectation is that the agreement
with GSK will provide a positive financial contribution to operations during
2009.

Long term vision
”Medivir's long term ambition is to be a research-based pharmaceutical company
with an in-house regional sales organisation focussing on speciality
therapeutics and specialist practitioners. The formation of the organisation
will occur stepwise and, when fully built out, is expected to comprise around 15
employees. During the coming years, Medivir intends to expand its product
portfolio by additional co-promotion agreements with other companies, in
licensing, acquisitions and internally developed products”, says CEO Lars
Adlersson.

For additional information, please contact: 
Stefan Mårtensson, Vice President, Marketing & Sales, +46 76 131 00 12
Rein Piir CFO & VP Investor Relations, Medivir AB +46 8 5468 3123, +46 708 537
292

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