Inhibitex agrees to FermaVir merger

As part of the merger agreement Inhibitex will gain two antiviral development programs to enhance its anti-infective drug development capabilities, including FV-100, for the treatment of shingles and a series of preclinical compounds for the treatment of human cytomegalovirus (CMV) disease.

Under the terms of the agreement, each of the 20.8 million outstanding shares of FermaVir common stock will be exchanged for 0.55 shares of Inhibitex common stock. Inhibitex shareholders are expected to own approximately 73% of the combined company. The transaction is expected to close by the end of July 2007.

According to FermaVir, published studies demonstrate that FV-100 is the most potent antiviral compound developed for the treatment of shingles. Further, FV-100 has the potential to further reduce all shingles-related symptoms, including acute pain and post-herpetic neuralgia. Preclinical data also suggest that FV-100 may have a favorable dosing and safety profile as compared to other currently-available antiviral therapeutics used to treat shingles.

The FermaVir CMV antiviral program includes nucleoside analogues, as well as series of non-nucleoside analogues, which possess potent antiviral activity and a favorable cellular toxicity profile. Inhibitex anticipates that a lead clinical candidate will be nominated from this program by the end of 2007.