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===Roche, InterMune team up on hepatitis C===
Mon Oct 16, 2006 5:43pm ET
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ITMN (InterMune Inc )
Last: $16.83 ***ITMN up $5 after hours on the news....***

UPDATE 1-Roche, InterMune team up on hepatitis C
Roche, InterMune team up on hepatitis C treatments
UPDATE 1-InterMune names new CFO

NEW YORK, Oct 16 (Reuters) - Roche Holding AG (ROG.VX: Quote, Profile, Research) and InterMune Inc. (ITMN.O: Quote, Profile, Research) said on Monday they will work together to develop and commercialize hepatitis C treatments in a deal that will bring InterMune an upfront payment of $60 million and up to $470 million in milestone payments.

Shares of InterMune jumped 30.7 percent in after-hours trading following announcement of the deal that also includes a 50-50 split of any U.S. profits from products that come out of the collaboration.

The agreement involves InterMune's lead experimental drug candidate for the hepatitis C virus (HCV), a protease inhibitor known as ITMN-191 that is expected to begin early stage clinical trials before the end of this year.

InterMune could receive $35 million of the milestone payments within the next 12 months, the companies said.

The companies also will collaborate on a research program to identify, develop and commercialize novel second-generation protease inhibitors for treatment of hepatitis C.

"We believe that protease inhibitors may become an important new component of HCV treatments and we look forward to working with InterMune in the development of ITMN-191 and other potential compounds that may emerge from our collaboration," Peter Hug, Global Head of Pharma Partnering for Swiss-based Roche, said in a statement.

An estimated 3.9 million Americans have been infected with the hepatitis C virus, of whom 2.7 million are chronically infected, according to the Centers for Disease Control and Prevention. An estimated 170 million people worldwide are afflicted with the disease.

InterMune, based in Brisbane, Calif., will lead phase 1 clinical trials For ITMN-191 after which Roche will take control of clinical development and commercialization, according to terms of the deal.

Roche agreed to fund 67 percent of the global development costs for ITMN-191, but the companies will split any U.S. profits evenly.

InterMune will receive royalties on sales outside the United States, or the company may opt-out of either co-development or co-commercialization for ITMN-191, in which case InterMune would receive higher royalties from outside U.S. sales and royalties instead of profit sharing in the United States.

InterMune shares rose to $22 in extended electronic trading from their Nasdaq close at $16.83.
http://biz.yahoo.com/bizj/061016/1361498.html?.v=1
http://www.thestreet.com/_yahoo/newsanalysis/biotech/10315318.html?cm_ven=YAHOO&cm_cat=FREE&....

Personally, I believe that Protease Inhibitors are NOT the ultimate answer to HCV or enveloped viruses. None have shown an SVR that is anywhere near being a cure for HCV, but rather a band aid for the effects and viral load which will rebound upon cessation of infusion. See VRTX's initial small population/small duration trial results where the SVR still hasn't been published. There will be other solutions coming down the turnpike I believe which will arrest and hopefully destroy the HCV virus and leave it as non mutatable. The suffering of HCV patients being expressed on many popular HCV sites is terrible as well as the side effects of Peg-inf and Ribavirin. That was my small speech without mentioning what I believe will be a/the solution.....