Ambrilia Biopharma Inc.
TSX : AMB

Ambrilia Biopharma Inc.

October 12, 2006 13:10 ET

Ambrilia Biopharma and Merck & Co., Inc. Announced Today the Signing of a Licensing Agreement

MONTREAL, QUEBEC--(CCNMatthews - Oct. 12, 2006) - Under the terms of this agreement, Ambrilia (TSX:AMB) grants Merck the exclusive worldwide rights to its lead HIV/AIDS protease inhibitor, PPL-100, which has completed a Phase I single-dose pharmacokinetic study and is currently in a Phase I repeat dose pharmacokinetic study. In return Ambrilia receives an upfront licensing fee of $US 17 million on signing and is eligible for cash payments totaling up to $US 215 million upon successful completion of development, clinical, regulatory and sales milestones, and royalties on all future product sales. The first of the milestone payments ($US 3 million) will be based on the successful completion of a Phase I repeat dose pharmacokinetic study, the results of which are expected in late November. Once the Phase I repeat dose pharmacokinetic study is completed, Merck will assume all subsequent development costs related to PPL-100.

Ambrilia also stands to receive significant 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 which fall within the scope of the Ambrilia PI program.

"We are very pleased to partner on PPL-100 with Merck, a leader in anti-HIV drug development, and are confident that Merck will successfully advance the development of PPL-100," said Hans Mader, President and Chief Executive Officer of Ambrilia. "This agreement is a significant milestone for Ambrilia; an influx of potentially over $CDN 22 million in 2006 allows the Company to be much stronger financially and provides us with the opportunity to allocate the necessary resources to further progress the development of our other technologies and product candidates."

"Merck has been a world leader in the fight against HIV/AIDS for two decades, and this agreement is a further demonstration of our continuing commitment to this field of medicine," said Merv Turner, Ph.D., Senior Vice President, Worldwide Licensing and External Research. "PPL-100 and Ambrilia's Protease Inhibitor Program represent a potentially significant advancement for patients and physicians in the treatment of HIV/AIDS.

Editors Note: A photo for this release will be available on the CP picture wire via CCNMatthews.

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