Inhibitex Awarded SBIR Grant to Develop Vaccine Against Drug-Resistant Infections August 2, 1999 ALPHARETTA, Ga. (BW HealthWire) - Inhibitex, Inc. was awarded a six- month, $100,000 Phase I Small Business Innovation Research (SBIR) Grant by the National Institute of Allergy and Infectious Diseases Division of the National Institute of Health. Inhibitex will use the funds to test the efficacy of its proprietary MSCRAMM(tm) (Microbial Surface Components Recognizing Adhesive Matrix Molecules) based vaccine against antibiotic-resistant Staphylococcus aureus (S. aureus) in preclinical models. Inhibitex received the award based upon competitive review against a number of rigorous scientific and business criteria as judged by prominent scientific researchers, physicians and leaders in public affairs. Nosocomial or hospital acquired infections are responsible for more than 90,000 deaths each year in the United States, and add $4 billion to the cost of health care. Staphylococcal organisms are the leading cause of nosocomial infections. The average cost to treat a patient that develops a nosocomial S. aureus infection exceeds $30,000, and typically requires an additional 12 days of hospitalization. In the United States more than 35% of the S. aureus strains responsible for nosocomial infections are resistant to the antibiotic methicillin. In countries outside the U.S., methicillin resistance is detected in over 60% of the clinical S. aureus isolates. MSCRAMM(tm) proteins are a family of naturally occurring proteins on the cell surface of pathogenic microorganisms, such as bacteria and fungi. These proteins mediate the adherence of bacteria to host tissues, the critical first step in the initiation of most infections. The Company's leading programs are focused on the development of plasma- based hyperimmune immunoglobulins (hyperimmune IVIG) products to prevent and treat nosocomial, or hospital-acquired, infections caused by S. aureus and Staphylococcus epidermidis. More than half of the nosocomial infections that occur in the United States result from S. aureus and S. epidermidis. Bill Johnston, Ph.D., President and Chief Executive Officer, commented, "We are very pleased that the National Institutes of Health recognize the serious threat that drug- resistant infections represent to our most vulnerable patients, including infants and those already suffering from diseases and conditions that increase their vulnerability to these organisms." "We believe that our proprietary, antibody-based technology is particularly advantageous for developing a vaccine to prevent infections that result from staphylococcal infections," added Joseph M. Patti, Ph.D., Chief Scientific Officer. "Because they prevent the mechanism of infection at the cell and molecular level, we believe our proprietary MSCRAMM(tm) proteins will lead to a significant advancement in the prevention and treatment of a number of drug-resistant infectious agents, including S. aureus." The Small Business Innovation Research Program, a set-aside program under the direction of the National Institutes of Health, supports innovative research conducted by small business concerns that are judged to have scientific and technical merit, as well as commercial potential. Applications are competitively evaluated against rigorous criteria and reviewed by the Center for Scientific Review and by the National Advisory Councils or Boards of the relevant institutions to which the grant application is assigned. Inhibitex's lead product candidate, a polyclonal antibody derived from a selected subset of human plasma donors, is in the late preclinical phase. Inhibitex expects to file an IND for a Phase I/II clinical trial for a product to prevent S. aureus infection in hemodialysis patients, a group highly vulnerable to such antibiotic-resistant organisms. Inhibitex, Inc. is a biopharmaceutical company pursuing the development and commercialization of products for the infectious disease market. The Company's core technology is designed to inhibit bacterial adherence to host tissues, the first step in the initiation of infection. The Company's R&D programs are leading to differentiated antibody-based products that will be used to prevent and treat infections caused by antibiotic resistant bacteria. Inhibitex's current patent portfolio includes 14 issued U.S. Patents and 12 U.S. Patent applications covering its global immunotherapeutic platform and MSCRAMM(tm)-based technologies.