R&D Day 12 March 2010 Presented by Ron Long, CEO & President Eva Arlander, VP Pharma Bertil Samuelsson, VP Discovery & Research Rein Piir, CFO / IR

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Agenda •  Welcome – Rein Piir, CFO / IR •  Introduction – Ron Long, CEO & President •  Window of opportunity and Xerclear™ - Eva Arlander VP Pharma •  R&D Portfolio – Bertil Samuelsson - VP Discovery & Research •  Sum up and conclusion

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Introduction

Ron Long - CEO

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Our first product will see the light of the market on March 15!

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Rationale

HSV-1 Xerclear Inflammatory response

The rationale for the use of a combination aciclovir and hydrocortisone in the treatment of recurrent mucocutaneous HSV is to enable control of both the viral replication and the inflammation

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- a powerful package

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Prevents development of cold sores

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Decreases healing time of ulcerative cold sores

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The Xerclear™ vehicle improves dermal delivery

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Xerclear™ has a unique and compelling label text

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Granted patents: covering 1) composition-of-matter and 2) formulation

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Xerese™ – Xerclear™ – a differentiating label First cold sore product with clinical data resulting in a unique and strong indication text – both in US and EU Indication text as approved in US “Xerese, a combination of acyclovir and hydrocortisone, is indicated for the early treatment of recurrent herpes labialis (cold sores) to reduce the likelihood of ulcerative cold sores and to shorten the lesion healing time in adults and adolescents (12 years of age and older)”

Indication text as approved in EU ”Treatment of early signs and symptoms of recurrent herpes labialis (cold sores) to reduce the progression of cold sore episodes to ulcerative lesions in immunocompetent adults and adolescents (12 years of age and older)”

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Xerese™ – Xerclear™ strategy NORDIC Launch Xerclear™ Rx in SE on March 15 and in FIN March 22. OTC to follow during 2010. EU European partner discussion for Xerclear™ ongoing in parallel with preparation of product launch by late H2-2010. Initially, legal status is OTC and Rx, with an overall switch to OTC over time. US MEDA is the US partner for Xerese™. They are preparing for product launch by Q3/Q4 2010. Like other cold sore pharmaceuticals, Xerese™ will be a prescription (Rx) product ROW Discussions ongoing

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US market for topical cold sore products Market   Topical cold sore cream market is approximately USD 150-180 MUSD/year   Prescription status for all antiviral treatments (acyclovir, penciclovir)   Main competitors are Zovirax cream, Denavir cream and Abreva

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EU Market for topical cold sore products Market   Topical cold sore treatment value of the main European markets is approximately 200 MUSD/year   EU is a scattered and competitive market dominated by OTC products   The market value for SE and FIN is 7 MUSD/year

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Regulatory status in EU

Regulatory Status in RMS/CMS

Approved* (n=10)

Pending (n=4)

2g tube OTC

2g tube Rx

6 (CZ, DK, IS, PT, SK, SE)

4 (AT, FI, FR,UK)

4 (BE, ES, PL, DE)

*Either direct or expected by a submission of a variation after the national approval

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Window of opportunity •  Medivir’s first product launch •  Inhouse competence in development, marketing and sales •  Established dermatology network in SE •  Future products from Medivir pipeline – closer than ever •  Business opportunities

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Medivir R&D A project pipeline with major focus on anti infective Strong preclinical delivery • 

Validated discovery process & technology platforms generating quality development candidates – 

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One of the largest compound libraries in the industry –  – 

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Tools for structure based drug design

Early and extensive in vitro and in vivo DMPKT profiling – 

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X-RAPiD, a combinatorial library of ~120 000 compounds for screening any protease e-FOCUS software provide a map of the protease subsites, generating exquisite structure activity relationships (SAR) for inhibitor development

X-ray crystallography & high field NMR – 

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~4 500 nucleoside analogue ~25 000 protease inhibitors

Proprietary and specialized protease technologies: –  – 

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HCV PI; less then 3 years from lead series (LI phase) to start of Phase IIa clinical trials (in collaboration with Tibotec/J&J)

Focus on once daily, low dosage and orally bioavailable drugs

Large network of preclinical and clinical specialist collaborators and CROs complementing internal drug discovery and development

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One focused pipeline March 2010

Anti infective Other indications

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Valomaciclovir - licensed to Epiphany Biosciences Agreement –  Equity in Epiphany –  Milestone payments to USD 24.5 M –  Royalty from world wide sales –  Medivir has the marketing rights for the Nordic countries –  Epiphany responsible for the clinical development Valomaciclovir (EPB-348) •  A broad-spectrum herpes antiviral with high commercial prospects •  Lead indication: Varicella Zoster (Shingles). Shingles sales in the major markets exceeded 0.8 billion USD in 2008 •  Develoment status: –  Completed Phase IIb trial, met primary endpoint, time to complete crusting, at once daily dosing •  Randomized, double-blind, active-controlled, multi-center, parallel-group (non-inferiority with Valtrex as comparator) at 46 U.S. clinical centers including 373 patients –  Phase 2b data show reduction in incidence of PHN –  Data suggestive of wider treatment window –  Targeting 2012 regulatory submissions and 2013 launch in US and EU • 

EBV (infectious mononucleosis) – Phase IIa complete, met primary endpoint

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MIV-210 (lagociclovir valactate) licensed to Daewoong • 

Agreement –  China, South Korea, Japan and Taiwan territories for HBV –  Daewoong responsible for the clinical development –  Medivir has the marketing rights for the rest of the world

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Lagociclovir valactate: –  Potent inhibitor of HBV in vitro and in animal models –  Active against all tested HBV mutants, e.g. to lamivudine, adefovir, and entecavir –  Is synergistic with lamivudine and adefovir in vitro

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Dose in HBV patients expected to be 10-20 mg q.d.

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News flow and events in the upcoming 12 months –  Start of Phase 2a in HBV patients

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Main partner – three programs:

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Hepatitis C (HCV) - background Disease & market •  ~180 million worldwide infected with hepatitis C virus •  ~12 million infected in the US, Europe and Japan •  Immense medical need: only 40-50% of patients with genotype 1 respond to current SoC therapy (48 weeks of PEG-IFN/ribavirin) •  Estimated market value of 10.5 billion USD in 2015 The need for new drugs •  Increased SVR rates (cure rates) •  Improved safety and side effect profile •  Shorter duration of treatment •  Higher compliance –  lower drug burden and simplified dosing (once daily, no food interaction and large “forgiveness” factor)

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HCV- Future of new DAA agents; New treatments evolving Programs in collaboration with Tibotec/JNJ Directly Acting Antiviral (DDA) Agents •  New oral agents will dramatically increase SVR and shorten treatment duration • Initially as “add-on” therapy but in combination eventually displace one or both of ribavirin and Peg-IFN • New anti viral agents with different MOA will be used in combination with each other, similar to HIV, to improve efficacy, shorten treatment duration and minimize development of resistance -  Combinations of Protease Inhibitors with other direct antivirals will drive the future market • Medivir, with TMC435 as a front runner of this new wave, is strongly positioned to become part of these future DAA combination treatments Kwong A, et al. Drug Discovery Today: Therapeutic Strategies 2006;3:211-220 Schmitz U, Tan SL. Recent Pat Antiinfect Drug Discov 2008;3:77-92

In-house HCV programs 20

Hepatitis C - Nucleoside NS5B Polymerase Inhibitors Status •  Partnership entered with Tibotec/J&J May 2008 •  Presently in late preclinical development phase towards phase I clinical trials Next step •  Start of phase I Licensing agreement •  Remaining milestones of €137m + royalties on sales for one product reaching market. •  Additional €130m for second compound and indication reaching market + royalties on sales. •  All development costs covered by JNJ •  Nordic rights retained by Medivir

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Development stage of HCV nucleosides Ph I

Pre-clin

Ph Ib/IIa

Ph IIb NM-283

MK-0608

GI side effects

Biocryst R-1626

Biota/BI

First generation

Neutropenia

Tibotec/Medivir R-7128: 8-12wk +SOC INFORM-1: +ITMN-191

Inhibitex Roche TMC619688 TMC651755 & prodrugs

Second generation

Ph III

PSI-938 PSI-879

Idenix (IDX-184) 2 wk 200 mg +SOC 100 mg, QD, 3d VLD: 0.74

Pharmasset PSI-7851 4 wk 400 mg + SOC 400 mg, QD, 3d VLD: 1.91

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HCV Nucleoside program News flow and events in the upcoming 12 months •  Start of Phase Ia & Ib clinical trials •  Presentation of Phase I clinical trial data •  Presentation on antiviral potency, mechanism of action and DAA synergy data

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Cathepsin K inhibitors – for the treatment of osteoporosis, osteoarthritis and metastatic bone disease (MBD) Cathepsin K inhibitors intervene in disease states where there is excessive bone loss, e.g. osteoporosis, osteoarthritis and metastatic bone disease

Osteoclast

Market value estimates: •  Osteoporosis: Global sales for 2010 estimated at 7.9 billion USD • 

Osteoarthritis: Global sales for 2010 estimated at 4.4 billion USD

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MBD: Global bone metastasis market was 1.3 billion USD in 2008. Deutsche Bank projects a denosumab SRE market of 2.1 billion USD in peak sales

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Medivir Cathepsin K inhibitor program • 

Two Candidate Drugs selected in 2009 (MIV-710 and MIV-711)

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MIV-710 and MIV-711: –  display superior pharmacokinetic properties compared with MIV-701 (discontinued) which showed “proof-of-principle” in phase I clinical trials during 2007 –  exhibit potent and reversible anti-resorptive activity on bone –  does not suppress the beneficial bone formation, as other anti-resorptives –  furnish long duration of activity

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Dose in human –  An efficacious dose of ~50 mg once daily anticipated

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Strong IP position A broad program targeting multiple indications of great unmet medical need –  osteoporosis, OP –  osteoarthritis, OA –  metastatic bone disease

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News flow and events in the upcoming 12 months –  Upscale of CD and completion of preclinical development phase –  Partnering discussions

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Medivir Cathepsin K Inhibitor CDs MIV-710 & MIV-711

% of baseline CTX-I

High efficacy predicted from biomarkers of osteoporosis Reduction in plasma CTx-I, a biomarker of bone breakdown, in cynomolgus monkeys after: - Oral administration - Single low dose

140 120

Almost 100% suppression of osteoporosis bone breakdown over 8h

100 80

Treatment

Max inhibition (%)

Inhibition at 24h (%)

Vehicle

56

2

MIV-701

64

22

MIV-710

75

51

MIV-711

95

75

Vehicle (n=10) MIV-701 (n=5)

60

MIV-710 (n=7) MIV-711 (n=4)

MIV-701 40

MIV-710 20

MIV-711 0 0

4

8

12

16

20

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• Highly advantageous plasma exposure for MIV-711 (128 fold higher compared with MIV-701) • Almost complete inhibition of bone erosion with extended effect duration (8h) after a single oral dose • 75% of effect maintained after 24h

Time (h)

A clinical efficacious once daily dose of ~50 mg – low cost of gods 26

PPI-801/802 (MIV-410): For the treatment of HIV – licensed to Presidio Pharmaceuticals •  Agreement –  –  –  – 

Milestone payments of maximally USD 41.75m Royalty from world wide sales Presidio responsible for the preclinical & clinical development Medivir has the marketing rights for the Nordic countries

•  PPI-801/802 (formerly called MIV-410): –  Nucleoside reverse transcriptase inhibitor (NRTI) with a novel mechanism of action. PPI-801 is a non-obligate chain terminator being incorporated into the nascent cDNA chain and terminates at a penultimate position following the addition of at least one additional nucleoside –  Broad-spectrum activity: is effective at inhibiting a wide variety of NRTI resistant mutants

•  Indication –  Treatment failures from HAART –  First-line therapy for newly infected individuals

•  News flow and events in the upcoming 12 months –  Completion of preclinical development phase

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HIV-PI Program Disease & market •  An estimated 35 M people worldwide were infected by HIV, of which a total of approximately 2 M people in Western Europe and North America •  In an increasing number of patients, HIV is developing resistance •  There is no cure •  Estimated market value for HIV/AIDS: 12.7 Bn USD in 2010 R&D collaboration with Tibotec/J&J Collaboration

•  Agreement entered in June 2006 •  Research funding at Medivir up to December 2008 •  Development milestones & royalties similar to HCV PI license agreement •  • 

Highly competitive CD target profile Extensive non-limiting patent portfolio

News flow and events in the upcoming 12 months •  Selection of candidate drug (CD) and start of preclinical development

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Cathepsin S Inhibitors - for Neuropathic pain and RA • 

Strong link to neuropathic pain –  – 

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Strong link to RA –  –  – 

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upregulated in DRG infiltrating macrophages and near site of peripheral injury in rodent models secreted by activated microglial cells in CNS in rodent models

crucial role in MHC Class II antigen presentation performs final step in processing of invariant chain antigen presentation is key to establishing an immune response

Medivir Cathepsin S program –  –  – 

Strong IP (patent) position Potent, selective and orally bioavailable inhibitors developed Proof-of-principle has been demonstrated for Medivir lead inhibitor in a preclinical rodent model of

neuropathic pain

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News flow and events in the upcoming 12 months –  – 

A cathepsin S inhibitor acting by reducing microglial activation leads to decrease in the pain signal transduction and eleviate neuropathic pain.

Candidate Drug Selection Start licensing discussions

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BACE Inhibitors for the treatment of Alzheimer’s disease (AD) Disease and market •  Around 35 million AD cases world-wide today with a three fold increase to 105 million AD cases expected by 2050 •  Life expectancy from diagnosis: Approx. 10 years •  The annual costs for AD is estimated to 148 billion USD

Reduced brain volume Neuronal cell death Synaptic degeneration

Plaque (Amyloid β-peptide)

Drugs available today  No available drugs cures/prevents the disease  A few drugs cause transient symptomatic relief –  Acetylcholine esterase inhibitors –  Glutamate antagonist

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BACE Inhibitors - The leading hypothesis for next generation AD drugs •  Project status: lead optimization stage •  Novel and patentable lead series developed •  Focus on two validated lead series

•  Strong IP (patent) position •  Potent and selective BACE inhibitors •  Lead inhibitors display robust potencies •  Ki values potency than 1st generation PIs (telaprevir, boceprevir) •  Potent anti-viral activity shown in Phase IIa clinical trials •  Low pill burden: convenient one pill, once daily •  No food interactions •  No significant adverse events over current SoC Licensing agreement •  Remaining milestones of EUR 47m •  Royalties on market sales •  All development costs covered by Tibotec •  Nordic rights retained by Medivir

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HCV PI – the competitive landscape Pre-clin

Ph I

Ph Ib/IIa

TMC435 J&J/ Medivir

Protease Inhibitors

VBY 376

ITMN-191/R7227 Roche/ITMN

Vertex-813

ABT-450

PHX-1766 ACH-1625

Ph IIb

?

Ph III

Telaprevir J&J/Vertex

Boceprevir Merck

BI 201335

BMS650032 Vaniprevir MK7009 Merck SCH900518

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TMC435 - the leading second generation HCV PI: 1) potent 2) well tolerated 3) low dose 4) one pill and 5) once daily

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Comparing TMC435 with Telaprevir and Boceprevir

Replicon EC50 : nM of drug for 50% inhibition of cell-based virus replication Dose, mg Dose, times per day Dose, mg, total per day

Tolerability

TMC435

Telaprevir

Boceprevir

8

350

200

75 - 150

750

800

1

3

3

75 -150

2,250

2,400

Generally well tolerated

Rash, pruritus, anemia

Anemia requiring EPO use in 50% pts

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TMC435 C201: A phase 2a study in treatment-naïve and treatment-experienced patients (2008/09) A once daily (QD) treatment of TMC435 in doses from 25 to 200 mg + SoC Four-week triple therapy, then followed by SOC alone up to week 24 or 48

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TMC435 C201: Potent antiviral activity in treatment-naïve patients achieved at week 4 (RVR) and at week 12 (EVR) 10 -