Micrologix Biotech Inc., a developer of anti-infective drugs has acquired the global rights to celgosivir (to be designated as “MBI-3253”), a Phase I/II clinical-stage compound, from Virogen Ltd. (UK). Celgosivir, which has been in over 600 subjects in human clinical studies to date, is a novel, oral antiviral agent under development for the treatment of chronic hepatitis C virus (HCV) infections. Micrologix intends to initiate Phase II clinical development with celgosivir in calendar 2004.

Jim DeMesa, CEO of Micrologix stated, “This acquisition fits perfectly with our transformational and critical mass building objectives by adding a clinical stage product opportunity for chronic HCV infections. Based on the size of recent partnerships for hepatitis products, we see MBI-3253 as a significant potential value driver for both the short and long-term. In addition to our antibacterial development programs, our product portfolio now includes candidates in both hepatitis B and hepatitis C, in various stages of development, from lead optimization to Phase II clinical development. This positions us well to address the unmet medical need that exists globally in the area of hepatitis.”

Micrologix will pay an up-front fee in equity to Virogen and will pay milestone payments in cash and/or equity upon the achievement of agreed upon development objectives, as well as royalties on product sales and sublicensing revenues. Specific financial terms of the agreement were not disclosed. About Celgosivir (MBI-3253) Celgosivir is an oral prodrug of castanospermine, a natural product derived from the Australian Black Bean chestnut tree, Castanospermum australe. Celgosivir is a potent inhibitor of alpha-glucosidase, an enzyme found in mammalian cells, which affects the early stages of glycoprotein processing. HCV and other enveloped viruses require proper glycosylation of structural proteins for one or more of the following: stability, maturation, assembly and secretion of infective particles. One potential advantage of celgosivir is that it inhibits a mammalian enzyme rather than a viral target. As a result, it is less likely to lead to drug-resistant viral mutants, as is seen with conventional antiviral drugs, and has the potential to be used in combination with current HCV therapies.