Biotech Values

[ghmm]

I have a different interpretation of the Chiva deal, I think its for them to develop NEW compounds not rights to all compounds. Also this is listed under proprietary compounds NOT partnered. My initial thought too was a left over compound (and it very well may be) but its not the Roche one that made it into Phase 1 as this is Preclinical (I checked last years 10K and they had an HCV program listed as Phase I). My hunch is one of either a few things it was a left over from another partnership, they went back and tweaked a compound perhaps one that was stopped at some point of development or (least likely) they used Metabasis's technology to create a new compound.

Here is the relevant Chiva section from the 10-k

Strategic Alliance with Chiva Pharmaceuticals of China for HepDirect Drug Development
In January 2011, we entered into a strategic relationship with Chiva Pharmaceuticals, Inc., or Chiva, to develop several of our assets and technology in China and potentially worldwide. Chiva was granted licenses to begin immediate development in China of our two clinical-stage HepDirect programs, Pradefovir for hepatitis B and MB01733 for hepatocellular carcinoma. Additionally, we granted Chiva a non-exclusive HepDirect technology license for the discovery, development and worldwide commercialization of new compounds in hepatitis B (HepB), hepatitis C (HepC) and hepatocellular carcinoma (HCC).
Chiva is obligated to develop these programs to address the high unmet medical need in China’s fast growing pharmaceutical market. The Chinese government is offering financial support to pharmaceutical companies like Chiva who can develop innovative therapies in China for public health needs such as infectious disease and oncology.
Under the terms of the agreement, we have the potential to earn over $100 million in milestones and royalties on potential sales related to our assets. In August 2011, the contract was amended to increase the royalty rates we are eligible to receive on licensed products in return for relinquishing rights to a 10% equity position in Chiva that we were entitled to under the original agreement.