Ambrilia Biopharma Inc. announced that it was advised by Merck & Co, Inc., that the HIV protease inhibitor PPL-100, also known as MK-8122, has been placed on a development hold pending outcome of additional basic science efforts to evaluate other PL-100 prodrugs and formulations options.

Merck's decision to place a development hold on MK-8122 was made pursuant to the results of the recently completed single dose and multi-dose studies in healthy volunteers. Merck is also further exploring development of potential back-up compounds. The exclusive license agreement between the companies entered into on October 12, 2006 provides additional milestone-based cash payments and royalties on the future development and commercialization of each back-up compound and or related compounds developed by Merck and whichever fall within the scope of the Ambrilia HIV protease inhibitor programme.

"Ambrilia believes in the potential of PPL-100/MK-8122 and related compounds to offer advantages to HIV patients over the currently commercialized protease inhibitors," said Dr Philippe Calais, president and CEO of Ambrilia. "Our partnership with Merck continues and we look forward to further progress on potential back-up compounds." Dr Calais continued, "Both companies remain focused on the partnership and determined to provide the best compounds available to help people with HIV/AIDS."

Protease inhibitors are a key component to the current HIV/AIDS standard of care, the Highly Active Anti-Retroviral Treatment (HAART) consisting of a cocktail of HIV medicines.

Ambrilia Biopharma Inc. is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology.