MIGENIX Corporate Update and Requisition of Special Meeting



    Board and Management Focused on Near-Term Milestones and Maintain
    Commitment to Strategy

    VANCOUVER and SAN DIEGO, July 8 /CNW/ - MIGENIX Inc. (TSX: MGI,
OTC: MGIFF), a clinical-stage developer of drugs for infectious diseases, has
received a requisition for a special meeting of shareholders for the purpose
of acquiring control of MIGENIX's board of directors (see "Requisition of
Shareholder Meeting"). Management and the board maintain their commitment to
all MIGENIX shareholders to create value based on our existing pharmaceutical
product development strategy and are continuing to work diligently on
opportunities to create value (see "Program Update").
    Jim DeMesa, M.D., President and CEO of MIGENIX stated, "Since announcing
our strategic plan in 2002, management has maintained a focus on achieving the
objectives outlined in that plan to build long-term value for our
shareholders. Familiar to all in the biotech space, drug development is a
long, risky process with many setbacks. We have been navigating that course
and are now on the verge of some of the results of our strategy. Importantly,
we are very close to a pivotal milestone for our latest-stage product
candidate - Omigard(TM), with Phase III clinical results expected before the
end of the calendar year (see "Program Update" below). Armed with positive
results from this study, our partner in this program, Cadence Pharmaceuticals,
plans to submit a New Drug Application (NDA) for marketing approval of
Omigard(TM) in the United States in the first half of calendar 2009 - which is
a significant event for any biotech or pharmaceutical company. Also, with
positive Phase III results, we expect to partner the additional commercial
rights to Omigard to maximize revenue to the Company for further value
creation. This is in addition to the potential US$27MM in milestone payments
under our agreement with Cadence and double digit royalty revenue on net sales
after approval of the product. This is a significant value opportunity for
MIGENIX and was made possible only through the perseverance and commitment of
the current management team and board of directors. Those knowledgeable about
the biotech industry and the product development process understand that
clinical success is required for value creation in drug development companies.
We are no exception and have confidence in our strategy and in our ability to
continue following through with the value opportunities we have created,
regardless of the challenges inherent in this industry."

    Program Update

    Management and the Board have built a solid portfolio (pipeline) of
programs to maximize value potential and mitigate development risk. The status
of these programs is as follows:

    Omigard(TM) (1% topical omiganan pentahydrocloride for preventing
catheter-related infections): Patient enrolment in the Phase III US and
European registration clinical trial conducted by Cadence Pharmaceuticals (who
is fully funding the Omigard development program) is complete (see May 6, 2008
press release). Cadence expects to announce top-line data from this trial in
the second half of 2008 and, with positive results, submit a new drug
application for Omigard(TM) to the FDA in the first half of 2009. Upon
successful completion of various milestones in this program (starting with FDA
acceptance of the NDA for filing), we can receive up to US$27MM in development
and commercialization milestone payments and a double-digit royalty on net
sales. Cadence's commercialization focus is on the United States market and
thus Cadence intends to establish a strategic partnership(s) for the
commercialization of Omigard(TM) for the rights it has outside of the United
States. MIGENIX management and Board are working to out-license Omigard(TM)
rights either in combination with Cadence's rights outside the US to
prospective global partners or to potential regional partners for rest of
world territories. We expect a license agreement or agreements with up-front
payment(s), milestones and royalty terms to be completed after positive
Phase III clinical trial results. Analysts publishing research on Cadence
Pharmaceuticals have forecast annual US sales of Omigard(TM) of up to
$250 million. Sales in global markets outside of the US would increase the
annual sales potential.

    CLS001 (2.5% topical omiganan pentahydrocloride for dermatological
applications): This program is at the end of Phase II stage of development and
is funded completely by our dermatology partner - Cutanea Life Sciences.
Cutanea has completed an end of Phase II meeting with the FDA and plans to
initiate a Phase III clinical trial in 2008 to treat rosacea. Upon successful
completion of various milestones in this program (starting with Phase III
enrollment), we can receive up to US$21MM in development and commercialization
milestone payments and a single-digit royalty on net sales.

    Celgosivir (oral alpha-glucosidase inhibitor for Hepatitis C Virus
infections): A Phase II study assessing 400 mg celgosivir for tolerability,
pharmacokinetics and viral kinetics when combined with the standard of care
drugs, pegylated interferon alfa-2b plus ribavirin, as compared to the
standard of care drugs alone for up to 12 weeks of therapy in treatment-naive
HCV infected genotype 1 patients is in the final stages of completion. Results
from the study are expected in the next several weeks. A previous Phase II
study in non-responder genotype 1 patients provided proof of concept in that
HCV patient population (see April 11, 2007 news release and January 31, 2008
Management Discussion & Analysis). The Company is currently in key strategic
discussions for the partnering and advancement of celgosivir.

    MX-2401 (injectable lipopeptide for serious gram positive bacterial
infections): This pre-clinical compound is expected to be our next clinical
candidate. Pre-clinical studies demonstrate that MX-2401 has a good safety
profile and very favorable pharmacokinetic and pharmcodymamic properties
including a long half-life and efficacy in multiple animal models of
infectious diseases, including pneumonia. The features of MX-2401 indicate a
highly competitive intravenous agent for treating serious gram positive
infections (including the highly publicized resistant bacteria, VRE and MRSA).
Activities in the program are currently focused on manufacturing and advancing
the program to an IND/CTA for clinical development by late 2009. Advances in
manufacturing process development have recently been achieved. We have a
$9.3 million investment commitment with Canada Industrial Technologies Office
(formerly Technology Partnership's Canada (TPC) program) for the development
of this compound.

    SB9000 (dinucleotide for Hepatitis B Virus infections): This program was
out-licensed to Spring Bank Pharmaceuticals and is currently in pre-clinical
development. Spring Bank plans to advance the program into the clinical stage
of development in the first quarter of 2010. We have a 1,000,000 convertible
preferred share and 50,000 common share ownership position in Spring Bank.
Under the terms of a license agreement, MIGENIX can also receive up to
US$3.5 million in milestone payments during development of the compound and
royalties upon commercialization.

    MX-4565 (for neurodegenerative diseases): This pre-clinical program has
been supported by a grant from the Michael J. Fox Foundation ("MJFF") awarded
to us in June 2007 for research related to Parkinson's and other disease
indications. The potential for a second year of funding is under review by
MJFF and us. The grant award agreement provides Elan Pharmaceuticals with a
limited right to license the technology arising from the MJFF project for
certain uses in the field of human disease. Other license discussions for
ophthalmologic indications are currently active.

    Requisition of Special Shareholder Meeting

    The Company has received from Douglas Johnson (a shareholder holding
approximately 5% of MIGENIX's outstanding common shares) a requisition for a
special meeting of shareholders for the purpose of replacing a majority of the
MIGENIX board of directors. Mr. Johnson has reported that DJohnson Holdings
Inc. has beneficial ownership of and/or voting control and direction over a
total of 14,042,400 MIGENIX common shares, representing approximately 15% of
the total issued and outstanding common shares of Migenix.
    The MIGENIX board of directors has appointed a Special Committee of
directors in respect of the requisition and related matters, comprising David
Scott, Mike Abrams, Alistair Duncan, Steve Gillis and Colin Mallet, all of
whom are independent of management. The Company will respond to the
requisition of a special meeting as required by law in due course.
    Management and the Special Committee believe that Mr. Johnson's actions
in seeking to acquire control of the Company has created significant
uncertainty and may have a negative impact on current business discussions
(e.g. partnering/licensing, government assistance) and other opportunities for
funding being pursued by management. This action will also distract management
and burden the Company with additional direct and opportunity costs it cannot
afford.

    About MIGENIX

    MIGENIX is committed to advancing therapy, improving health, and
enriching life by developing and commercializing drugs primarily in the area
of infectious diseases. The Company's programs include drug candidates for:
the prevention of catheter-related infections (end of Phase III), the
treatment of chronic hepatitis C infections (Phase II and preclinical), the
treatment of dermatological diseases (end of Phase II), the treatment of
serious gram positive bacterial infections (preclinical) and the treatment of
hepatitis B infections (preclinical). MIGENIX is headquartered in Vancouver,
British Columbia, Canada with US operations in San Diego, California.
Additional information can be found at www.migenix.com.

    "Jim DeMesa"
    James M. DeMesa, M.D.
    President & CEO


    FORWARD-LOOKING STATEMENTS

    This news release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995, and
forward-looking information within the meaning of applicable securities laws
in Canada, (collectively referred to as "forward-looking statements").
Statements, other than statements of historical fact, are forward-looking
statements and include, without limitation, statements regarding our strategy,
future operations, timing and completion of clinical trials, prospects, plans
and objectives of management. The words "anticipates", "believes", "budgets",
"could", "estimates", "expects", "forecasts", "intends", "may", "might",
"plans", "projects", "schedule", "should", "will", "would" and similar
expressions are often intended to identify forward-looking statements, which
include underlying assumptions, although not all forward-looking statements
contain these identifying words. By their nature, forward-looking statements
involve numerous assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the predictions,
forecasts, projections and other things contemplated by the forward-looking
statements will not occur.
    Although our management believes that the expectations represented by
such forward-looking statements are reasonable, there is significant risk that
the forward-looking statements may not be achieved, and the underlying
assumptions thereto will not prove to be accurate. Forward-looking statements
in this news release include, but are not limited to, statements concerning
our expectations for: Omigard(TM) being a significant value opportunity for
the Company; Cadence Pharmaceuticals having top-line results of the
Omigard(TM) Phase III trial in the second half of 2008 and if the results of
this trial are positive, Cadence submitting a new drug application (NDA) for
Omigard(TM) in the first half of 2009; completion of rest of world
partnership(s) for Omigard(TM) after positive Phase III Omigard(TM) results;
Cutanea Life Sciences' plans to advance omiganan for the treatment of rosacea
into Phase III clinical development by the end of 2008; to have results from
the celgosivir Phase II viral kinetics study in the next several weeks;
MX-2401 being our next clinical program and our plans to advance MX-2401 to an
IND/CTA by late 2009; and Spring Bank Pharmaceuticals advancing SB9000 into
clinical development in the first quarter of 2010.
    With respect to the forward-looking statements contained in this news
release, we have made numerous assumptions regarding, among other things: our
ability to achieve milestones related to the clinical programs; the adequacy
of the Omigard(TM) Phase III trial design to generate data that are deemed
sufficient by regulatory authorities to support submitting an NDA for
Omigard(TM); our ability to manage licensing opportunities; our partners'
abilities to successfully market Omigard(TM); Cutanea's ability to manage,
fund and advance omiganan for dermatological applications into Phase III, the
adequacy of Cutanea's Phase II results for regulatory authorities to support
advancing to Phase III; our ability to initiate, fund and complete
non-clinical studies, clinical studies, manufacturing and all ancillary
activities within our expected timelines; and Spring Bank's ability to manage,
fund and advance SB9000 into clinical development.
    Actual results or events could differ materially from the plans,
intentions and expectations expressed or implied in any forward-looking
statements, including the underlying assumptions thereto, as a result of
numerous risks, uncertainties and other factors including: dependence on
corporate collaborations; potential delays; uncertainties related to early
stage of technology and product development; uncertainties as to the
requirement that a drug be found to be safe and effective after extensive
clinical trials and the possibility that the results of such trials, if
completed, will not establish the safety or efficacy of our products;
uncertainties as to future expense levels and the possibility of unanticipated
costs or expenses or cost overruns; the possibility that opportunities will
arise that require more cash than presently anticipated and other
uncertainties related to predictions of future cash requirements; and other
risks and uncertainties which may not be described herein. Certain of these
factors and other factors are described in detail in the Company's Annual
Information Form and Annual Report on Form 20-F and other filings with the
Canadian securities regulatory authorities and the U.S. Securities & Exchange
Commission.
    Forward-looking statements are based on our current expectations and
MIGENIX assumes no obligations to update such information to reflect later
events or developments.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.





For further information:

For further information: Art Ayres, MIGENIX Inc., Tel: (604) 221-9666
Ext. 233, aayres@migenix.com; Dian Griesel, Ph.D., Investor Relations Group,
Tel: (212) 825-3210, Theproteam@aol.com

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MIGENIX INC.

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