Medivir expands in great britain

MEDIVIR EXPANDS IN GREAT BRITAIN An agreement has today been reached between Medivir AB and Peptide Therapeutics Group plc in relation to acquisition of Peptide's drug development operations, hereafter denoted "Mimetrix". The acquisition will be funded via a directed non- cash issue of 95 000 Medivir class B shares to Peptide. Mimetrix, located in Cambridge, England, employs 28 highly qualified researchers (of which 20 are Ph.Ds) in the field of preclinical research. Mimetrix has several patent pending technologies which complement in an unusually comprehensive fashion Medivir's existing pharmaceutical research capacity. These technologies enable rapid establishment of how an inhibitor should be designed to inhibit a given enzyme. Both Mimetrix and Medivir have a strategy employing certain enzymes (for example proteases and polymerases) as molecular targets for pharmaceutical development. This strategy is beneficial as these enzymes are "validated" targets for pharmaceuticals in the infections area. This means that it has already been established that a therapeutic effect is achieved if the enzyme is inhibited, which in turn means that the probability of success is relatively speaking higher than is the case with pharmaceuticals directed towards non-validated targets. Alongside its proprietary technologies, Medivir has a portfolio of high quality preclinical pharmaceutical projects. Cathepsin S - development of protease inhibitors against inter alia immune system disorders - is the project which has proceeded furthest. Cathepsin S is being developed and funded jointly with the American company Genzyme Corp which will share future revenue 50:50 with Mimetrix. Jonas Frick, Medivir's CEO "We are very pleased with this acquisition which complements our own operations extremely well. Mimetrix does high quality research which will be influential to Medivir's continued development. Medivir has now come to the stage where it is time to take an additional stride towards our vision to create a leading pharmaceutical development company within the antiinfectives area. With the Mimetrix acquisition Medivir establishes itself as an even more powerful force in European pharmaceutical research with 125 researchers (of which 50 operate in external university collaborations) and a well balanced project portfolio with four projects in clinical development phase and a number of promising projects in preclinical discovery. Over and above the increased capacity to rapidly produce new pharmaceutical candidates, the Mimetrix acquisition creates a bridgehead for Medivir's continued expansion. Cambridge has a unique tradition within medical research. The acquisition will enable Medivir to tap the developments and competence which exists in the Cambridge area as well as Mimetrix's network. Our goal is to be a desirable collaborative partner for the world's leading pharmaceutical corporations in the antiinfectives area and to create a company with good profitability." The acquisition of Mimetrix will be funded via a directed non- cash issue to Peptide whereby Peptide obtains 95 000 shares of Medivir class B. Additional consideration of up to GBP 4 million will be payable to Peptide if Cathepsin S and a further project generate income for Medivir. This consideration arises when the project produdes a resistered and marketed pharmaceutical. The acquisition is conditional on Medivir's Annual General Meeting approving the proposal allowing the Board to issue, without reference to current shareholder priority provisions, up to 1,5 million shares of class B. A further condition is that Medivir succeeds in raising funds in a new share issue. The new share issue is intended in April 2000 and will primarily be directed to Swedish and international institutional investors. Huddinge 27 March 2000 Medivir AB (publ) For further information please contact: Jonas Frick, CEO, Medivir AB, tel +46 8-608 31 17, +46 70-648 67 61 or Per Baumann, CFO, Medivir AB, tel +46 8-608 31 18 Information about Medivir on internet : www.medivir.se Medivir is a research and development company which develops new and better substances for the treatment of infectious diseases. The subsidiary company CCS AB develops, manufactures and markets body-care products and pharmaceuticals. Medivir has been listed on the Stockholm Stock Exchange since November 1996. The Group consists of the parent company, Medivir AB, the CCS AB subsidiary and UK company CCS (UK) Ltd. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/03/27/20000327BIT00190/bit0001.doc http://www.bit.se/bitonline/2000/03/27/20000327BIT00190/bit0002.pdf