Medivir AB and Epiphany Biosciences have announced the signing of a license agreement on MIV-606 (valomaciclovir), Medivir's phase II compound with potent activity against varicella zoster virus (VZV) and other viruses.

Under the terms of the agreement Medivir will receive equity in Epiphany, milestone payments of maximally USD 24.5m and royalty from worldwide sales except the Nordic countries where Medivir has retained the marketing rights for all disease indications. Epiphany will be responsible for the further clinical development of MIV-606.

Phase IIa studies have shown MIV-606 to be efficacious and safe in patients with shingles, caused by the varicella zoster virus (VZV). The market for zoster drugs is going to increase with the aging population. MIV-606 is also a potent inhibitor of other herpes viruses increasingly implicated in various diseases such as mononucleosis, chronic fatigue syndrome, multiple sclerosis and the development of HIV/AIDS.

"We are delighted to collaborate with Epiphany, an emerging US based company with an interesting project portfolio and support by a group of outstanding scientists such as Dr Robert Gallo, the discoverer of herpes virus type 6 and co discoverer of HIV, and Prof. Hans Wigzell, Karolinska Institute" comments Lars Adlersson, CEO and president of Medivir.

"Licensing MIV-606 will strengthen Epiphany's portfolio of projects in the infectious disease area. The broad spectrum of herpes viruses inhibited by MIV-606 offers more than one large market opportunity" says Dr Fred Volinsky, CEO and president of Epiphany.