Migenix Inc., a clinical-stage developer of drugs for infectious and degenerative diseases, has signed an investment agreement with the Government of Canada's Technology Partnerships Canada (TPC) programme.

Under the agreement, TPC will invest up to $9.3 million in the Company's research and development activities related to MX-2401, a novel lipopeptide candidate in preclinical development for the treatment of serious, gram-positive bacterial infections. The investment covers development of MX-2401 up to and including the completion of the first Phase III clinical trial.

Jim DeMesa, president & CEO of Migenix stated, "Our pipeline has grown considerably over the past 3 years through the execution of our strategic plan and, therefore, one of our stated objectives has been to seek non-dilutive investments to help advance certain projects. With this support from the Government of Canada through the TPC programme, we can now more effectively advance this important and very promising antibacterial programme, while continuing to focus the majority of our resources on our more advanced clinical programmes."

MX-2401 is a novel lipopeptide agent in development as an improved treatment for patients infected with life-threatening strains of Staphylococcus, including MRSA (methicillin-resistant Staphylococcus aureus) and MRSE (methicillin-resistant Staphylococcus epidermidis).

In vitro studies have shown that MX-2401 is potent against these clinically important bacteria which are the cause of many serious pneumonias and wound infections. It is bactericidal, killing bacteria rather than merely inhibiting their growth. In preclinical studies to date, MX-2401 was effective in several models of infection and, therefore, could be used in the management of multiple severe bacterial infections.