Medivir AB broadens its hepatitis C collaboration with Tibotec, entering a partnership in the field of HCV polymerase

Medivir AB broadens its hepatitis C collaboration with Tibotec, entering a
partnership in the field of HCV polymerase

Medivir AB (OMX Nordic: MVIR B) announced today a new Research, Development and
License agreement in the field of hepatitis C virus (HCV). Under the agreement,
executed with Ortho Biotech Products L.P. of Bridgewater, NJ (a wholly owned
subsidiary of Johnson & Johnson), Medivir will partner with Tibotec BVBA of
Mechelen, Belgium.

The goal of the HCV partnership is to identify and develop orally active
inhibitors of the HCV polymerase NS5B. Activities will centre on screening new
and existing libraries of nucleoside analogues, developed by Medivir, that show
anti-HCV activity in vitro.

Medivir and Tibotec will together carry out the preclinical phase of the project
with the aim of nominating drug candidates. Tibotec will thereafter have
responsibility for clinical development and marketing of such compounds. Tibotec
has been granted exclusive marketing rights in all countries except the Nordic
countries where marketing rights are retained by Medivir. 

According to the agreement, Medivir will receive an upfront payment of 5 million
euros at signing. Medivir will receive further milestone payments up to a total
of 142 million euros for one compound reaching the market and up to 272 million
euros if two compounds reach the market and approved for two indications.
Medivir will receive a royalty on product sales. The agreement also provides for
research funding to Medivir. 

“It is gratifying that we can broaden our collaboration with Tibotec.
Strategically it is crucial to evaluate further HCV drug targets - such as the
inhibition of polymerase NS5B - when endeavoring to treat HCV. Collaborating
with Tibotec makes good sense when we are already engaged in the development of
a compound with a different point of attack, namely the protease enzyme. The
compound, TMC435350, is in phase IIa clinical trials”, 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