<p>Under this agreement, Oncolys has been granted an option to acquire the Asian rights for TT-033, a novel RNA interference (RNAi) based product for the treatment of hepatitis C (HCV), which Oncolys will market as OBP-701. Further, Oncolys has made an equity investment in Tacere of an undisclosed amount.<br /><br />Regarding HCV, there are still many patients who have no meaningful cure and there is a definite need for new drugs that are both effective and safe. We believe that OBP-701/TT-033 will enable us to offer new treatments for patients suffering from HCV, said Yasuo Urata, president and CEO of Oncolys.<br /><br />TT-033 is a novel therapeutic product containing three separate RNAi elements entrapped in an AAV protein coat. The companies say AAV delivery methods have demonstrated clinical safety and the ability to penetrate hepatocytes (the site of HCV replication) at high levels following a single intravenous administration. <br /><br />In preclinical animal studies, this cocktail in one drug targeted and cleaved the hepatitis C virus itself at three different sites simultaneously without toxicity. The three sequences were chosen to be effective against all genotypes of HCV. Tacere will begin IND-enabling studies on TT-033 shortly and plans to enter phase I clinical studies in late 2008.</p>