Medivir Stock Down As Janssen To Discontinue Development Of JNJ-4178

(RTTNews) - Shares of Medivir AB (MVRBF.PK) were losing around 8 percent in the morning trading in Stockholm after the research-based pharmaceutical company with a focus on oncology announced that Janssen Research & Development has decided to discontinue the development of the investigational hepatitis C treatment, JNJ-4178.

The company noted that the discontinuation of development of JNJ-4178, the triple combination of simeprevir, odalasvir and AL-335, does not affect the ongoing partnership with Janssen on Olysio (simeprevir), or the existing licensing agreement with Janssen in which simeprevir is included.

Medivir continues to be entitled to royalties on sales of single agent simeprevir globally.

According to the firm, the decision to terminate the development of JNJ-4178 was made in light of increasing competition due to the availability of a number of effective therapies for hepatitis C. The ongoing phase II studies with JNJ-4178 will continue as planned, but there will be no additional development thereafter.

Christine Lind, CEO at Medivir, said, "Although Janssen's decision not to progress this promising treatment further is unfortunate, Medivir's focus does not change. We continue to develop our proprietary pipeline in oncology and look forward to completing the ongoing Phase IIa studies in osteoarthritis."

Medivir shares were trading at 66.75 Swedish kronor, down 7.61 percent.