Candidate Drug designated within the Tibotec Collaboration

The Hepatitis C Virus (HCV) collaboration with Tibotec Pharmaceuticals Ltd has recently designated a Candidate Drug (CD). The aim of the research collaboration is to identify and develop orally active inhibitors of the HCV protease NS3/4A. The collaboration was initiated in November 2004 and attaining a CD designation represents an important step on the way towards clinical development. Separately, the first milestone for preclinical development has been reached in the program, triggering a milestone payment to Medivir of €5m. “Hepatitis C is a highly interesting area for the development of new, innovative pharmaceuticals, and there is a huge need for new treatment principles. It is enormously satisfying that this project with joint resources and efforts has reached such an important development stage as the designation of a CD. We are extremely pleased with the collaboration and the pace it is progressing”, says Medivir’s VP Research Bertil Samuelsson. “The designation of this Candidate Drug is the third in a row of protease-based CDs which we have achieved in less than two years. This further validates the productivity of our protease research engine. It enhances the prospects of entering clinical trials over the next few years with several protease inhibitor projects, targeting large patient populations”, comments Medivir CEO Lars Adlersson. Hepatitis C is caused by the RNA virus HCV. The WHO considers that 3% of the global population is infected with HCV, meaning some 200 million individuals. In the USA, 1.8% of the population is infected, which represents 3.9 million individuals. Around 2 million people have the confirmed diagnosis Hepatitis C in the West. In more than 60% of cases, HCV infection leads to protracted illness and handicap. It is the most common cause of chronic liver disease and of liver tumors and the most common ground for liver transplantation. The HCV market is currently dominated by interferon-based treatments which have limitations as regards to efficacy and are causing side-effects. Datamonitor expects the HCV market to grow rapidly from today’s USD 3.6 billion to USD 9 billion by the year 2010. FOR FURTHER INFORMATION, PLEASE CONTACT Rein Piir, CFO and Vice President, Investor Relations, +46 8 546 831 23 or +46 708 537292 For additional information, please see Medivir’s website www.medivir.com