Roche and Medivir announced a new research agreement in the area of hepatitis C (HCV) and the restructuring of their current alliance in the area of HIV. Regarding the ongoing agreement signed in April 2002, Medivir will assume responsibility for MV026048, a compound currently in development for the treatment of HIV, and Roche will provide guidance while retaining an opportunity to opt in to the program at a later date. In the new collaboration, the partners will embark on a joint research program to discover novel inhibitor compounds for the treatment of hepatitis C- infections.

“In the hepatitis C area, Roche is an ideal partner for Medivir. The generous research support means that Medivir can further enhance its competence and expand its pipeline without increasing the net costs of its research,” said Lars Adlersson, CEO of Medivir. “Under the restructured HIV-agreement, Medivir will be contributing its expertise, in resolving current challenges we are facing with the early stage HIV development candidate, MV026048. We are willing to make this limited investment in order to gain an even bigger stake in this exciting HIV project.”

“Roche has a proven track record with successful HCV compounds such as Pegasys and Copegus as well as HIV compounds like Fuzeon,” stated Williams M. Burns, Roche’s head of pharmaceuticals. “Expanding our partnership with Medivir is an example of how Roche is strategically selecting and restructuring partnerships where innovative therapies could lead to new treatments. Our decision to further our relationship with Medivir reflects our strong commitment to existing partners, and to building a robust HIV and HCV portfolio.”

In April 2002, Medivir granted Roche exclusive development and worldwide marketing rights, except in Denmark, Finland, Iceland, Norway and Sweden, to MV026048 for HIV. Roche will retain the right to opt in to this ongoing program, while providing Medivir with development guidance and know-how. Should Roche exercise this option, the sum of future payments to Medivir will increase, as compared to the original agreement.

Additionally, Medivir and Roche will collaborate on a new research program for HCV. As in the first agreement, Medivir will retain the right to market HCV products in the Nordic countries. Furthermore, due to the existing relationship between the parties, Roche will provide financial support for this program and make milestone and royalties payments to Medivir.