Biotech Values

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MBRX - Roche advances HCV nuke based on MBRX technology into pre-clinic

MBRX up about 90% after hours, but note the caveat at the end of the release regarding their finances.

http://finance.yahoo.com/news/Metabasis-Therapeutics-bw-15454204.html?.v=1

"Metabasis Therapeutics, Inc. (Nasdaq: MBRX - News) announced today that it received a $2 million payment from Roche in recognition of advances made on their research collaboration, which is focused on applying Metabasis’ HepDirect® liver-targeting technology to Roche’s proprietary lead nucleosides in order to develop new treatments for hepatitis C viral (HCV) infection. In addition, Metabasis announced that Roche has formally accepted MB11362 as a clinical candidate for development.

Metabasis and Roche entered into a collaboration and license agreement in August 2008 which included a $10 million upfront payment and provided for additional payments upon achievement of predetermined preclinical and clinical development events, as well as regulatory and commercialization events for each product, and royalties on net sales of products from the collaboration. As part of the collaboration, a HepDirect prodrug of a Roche proprietary nucleoside monophosphate was identified and evaluated in various pre-clinical studies conducted by scientists at Metabasis and Roche. The results of these studies led to a decision by Roche to advance MB11362 into pre-clinical development.

Metabasis reported last week that it had restructured the Company due to difficulties in raising capital from a financing or other sources. Metabasis continues to seek additional capital in the near-term, and if it is unsuccessful in raising additional capital, the Company may be forced to cease its operations entirely...."