Medivir purchases shingles agent ABT-606 from Abbott

Medivir purchases shingles agent ABT-606 from Abbott Medivir has decided to repurchase the previously outlicensed shingles agent ABT-606, now named MIV-606, from Abbott Laboratories. Abbott has taken the strategic decision to focus its research in other areas. "It is very pleasing that the scale up for industrial manufacture has been done. Abbott,s investment in the development of MIV-606 is now available to Medivir. Our intention is to find a new global partner for this product", says Jonas Frick, CEO of Medivir AB. "We have been satisfied with the research collaboration with Medivir," says John Leonard, vice president of pharmaceutical development, Abbott Laboratories. "From our testing to date MIV-606 has demonstrated a good safety profile and remains promising." Medivir is purchasing MIV-606 and rights to Abbott,s process patents for a cash payment of 1.9 MUSD and newly issued shares. The directed share issue will be at the rate of SEK 133 and corresponds to 1 percent of the total post-issue stock in Medivir. The share issue will necessitate an extraordinary general meeting. Abbott will also receive a minority position on future royalty income arising from MIV-606. In line with previous forecasts, Medivir expects to break even in 1999, on condition that MIV-150 performs in line with expectations and enters Phase I during the year. In laboratory trials, MIV-606 has proven to be more than 20 times more active against varicella zoster, the shingles virus, than the best currently marketed shingles agent. There do not appear to be any other shingles agents under development, aside from MIV-606. Results from Phase I clinical trials on healthy volunteers showed good pharmacokinetics and safety. The clinical trials on MIV-606 have proceeded satisfactorily. The Phase II clinical trial, which Abbott is funding, began in 1998 and will end in 1999. Shingles, a viral disease caused by varicella zoster virus, manifests itself as blisters which develop to open lesions. Around 95 percent of the adult population bears varicella zoster virus. The risk of developing shingles increases with age and almost every second individual will sometime suffer from the disease. In a large proportion of cases the disease leads to pain, often severe pain which in some instances is retained for months or years after the lesions have healed. Huddinge, Sweden May 25, 1999 Medivir AB (publ) For further information please contact: Jonas Frick, CEO phone +46 8 608 31 00 Anna Bernsten, IR-responsiblephone +46 8 608 31 05 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. 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/1999/05/25/19990525BIT00140/bit0001.doc http://www.bit.se/bitonline/1999/05/25/19990525BIT00140/bit0002.pdf