SOURCE: VIVALIS

September 11, 2007 16:18 ET

VIVALIS : NEW AGREEMENT IN THE PROMISING THERAPEUTIC PROTEINS MARKET NEW AGREEMENT IN THE PROMISING THERAPEUTIC PROTEINS MARKET FOR THE PRODUCTION OF MONOCLONAL ANTIBODIES

VIVALIS AND INNATE PHARMA COLLABORATE TO EVALUATE VIVALIS EBx® CELL LINES

NANTES, FRANCE and MARSEILLE, FRANCE--(Marketwire - September 11, 2007) - VIVALIS (Euronext : VLS) and INNATE PHARMA (Euronext : IPH) announce today having launched a scientific collaboration to evaluate VIVALIS EBx® cell lines, derived from avian embryonic stem cells, for the production of monoclonal antibodies. The first concrete results prove once again the efficacy of EBx® technological platform developed by VIVALIS compared to CHO cells which are currently the reference for monoclonal antibody production.

According to this Agreement, INNATE PHARMA is comparing the production of its monoclonal antibody in EBx® and CHO cells. This study comprises the analysis of the glycosylation profile of EBx® produced monoclonal antibody and its cytotoxic activity.

VIVALIS has thus demonstrated that the glycosylation profile of monoclonal antibody produced in avian EBx® cells, is similar to human monoclonal antibodies glycosylation profile, with the remarkable feature of having a reduced fucose content. This latter feature is known to be associated with a better antibody-dependent cell cytotoxicity (ADCC) activity, a biological activity particularly attractive for treating cancerous cells.

INNATE PHARMA has confirmed in functional analysis with human NK cells directed against cancerous cells, that the antibody produced in EBx® cells have indeed a higher ADCC activity compared to the same antibody produced in CHO cells.

Majid Mehtali, VIVALIS CSO declared : "The results obtained, so far during this collaboration show that EBx® cells have the potential to constitute a new cellular platform for the production of recombinant proteins, in particular anti-cancer monoclonal antibodies. There is today a strong demand for monoclonal antibodies having improved biological activities, in order to reduce therapeutic doses and production costs. This market accounts today for approximately $20 billion. This agreement with INNATE PHARMA comes after that reached with MAT BIOPHARMA and demonstrates the interest in the cell substrates developed by VIVALIS for the production of therapeutic proteins and in particular for the production of antibodies having an improved ADCC. These two agreements equally demonstrate the wide adaptability of VIVALIS technology for the production of a large spectrum of different antibodies. VIVALIS aims to sign licences agreements with upfront payments, milestones payments and royalties on products sales, as already achieved in the vaccine area".

François Romagne, INNATE PHARMA CSO declared: "Avian embryonic cells represent a promising alternative for the production of recombinant antibodies, mainly cytotoxic, for pharmaceutical uses".

About recombinant proteins production in EBx® cell lines

Monoclonal antibodies represent an important class of biotherapeutic products, that account for approximately a $20 billion market. Today, the production of monoclonal antibodies is performed in established cell lines, such as the hamster CHO cell line that became since the 80's a industrial production standard.

A significant fraction of the monoclonal antibodies currently on the market or under development for the treatment of cancers or auto-inflammatory diseases, act via antibody dependent cell cytotoxicity (ADCC) mechanism. Recently, new cellular platforms, especially genetically modified CHO cells, were developed to produce monoclonal antibodies with altered glycosylation profile, mainly having a reduced fucose content, to provide an improved ADCC activity in order to reduce therapeutic doses.

VIVALIS has developed proprietary EBx® cell lines derived from duck embryonic stem cells, that present interesting industrial and regulatory characteristics, specially a cell growth to a high cell density (> 10 millions cells/ml) in suspension in serum free medium. EBx® cell lines are already widely endorsed by the human and veterinary pharmaceutical industries for viral vaccines production as accredited by the signature of numerous licenses, such as for example, SANOFI-PASTEUR, GLAXO-SMITH-KLINE, NOVARTIS VACCINES, NOBILON, CSL, BAVARIAN NORDIC, FORTDODGE, MERIAL, INTERVET, CEVA.

Today VIVALIS wishes to provide to its partners the EBx® cells as a new cellular platform for the production of recombinant proteins, specifically antibody having an enhanced cytotoxic activity.

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Next calendar:

October 15th, after Euronext closing: Revenues, 3rd Quarter 2007

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About VIVALIS (www.vivalis.com)

Vivalis (Euronext: VLS) is a biopharmaceutical company specialised in vaccines and in viral diseases. VIVALIS' know-how and proprietary technologies are commercially exploited in three main areas:

- Vaccine development and manufacturing. VIVALIS grants commercial licences to its proprietary ebx® embryonic stem cell lines to pharmaceutical and biotechnology companies active in the viral vaccine business.

- Recombinant therapeutic protein and monoclonal antibody expression systems development. VIVALIS partners with pharmaceutical and biotechnology companies in this area, to which it licences its proprietary ebx® embryonic stem cell lines to manufacture recombinant therapeutic proteins.

- The build-up of a proprietary portfolio of vaccines and anti-viral molecules.

Based in Nantes (France), Vivalis was created in 1999 by Group GRIMAUD (1350 employees), the n degrees2 group worldwide in avian genetic breeding. Vivalis has established several partnerships with companies that are worldwide leaders in their respective fields, including Sanofi Pasteur, GlaxoSmithKline, Novartis Vaccines, Merial and SAFC Biosciences. VIVALIS is a member of the French ATLANTIC BIOTHERAPIES cluster.

The collaboration agreement described in this press release is one of the two collaboration agreements with industrial customers mentioned in the Registration Document. VIVALIS filed its Registration Document under the number I.07-077 dated 23 May 2007, with the Autorité des Marchés Financiers ("AMF"). The Registration Document approved the 23 May 2007 under the number I.07-077 is available free of charge from Vivalis' head office, 6 rue Alain Bombard, 44800 Saint-Herblain, and in electronic form on the Company's web site (www.vivalis.com) and on the web site of the AMF (www.amf-france.org). VIVALIS draws the readers' attention to the chapter 4 "Risks factors" of the Registration Document approved by the AMF. This press release, together with the material set forth herein, does not constitute an offer of securities for sale nor the solicitation of an offer to purchase securities in any jurisdiction. Distribution of such press release in certain jurisdiction may constitute a breach of applicable laws and regulation.

B Compartment of Eurolist Paris - FR0004056851

Reuters: VLS.PA - Bloomberg: VLS FP

Investors Contact:

VIVALIS NewCap

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Email: investors@vivalis.com Steve Grobet / Emmanuel Huynh

Tel.: +33 (0) 1 44 71 94 91

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