The Phase Ib trial was a randomized, double-blind, placebo-controlled study to assess the safety and tolerability of MBI 853NL applied intranasally to healthy volunteers who were persistent carriers of nasal S. aureus. Data from the study found that MBI 853NL was safe, well tolerated and resulted in a decreased number of S. aureus organisms in all MBI 853NL-treated groups.

"While the suspension of the MBI 853NL program comes as a disappointment, the data confirms that the product is safe and reduces the number of S. aureus organisms following treatment," said William (Bud) Foran, Chairman and Chief Executive Officer of Micrologix. "Based on the level of reduction seen and our experience in screening subjects for this trial, we believe that the future clinical development program for MBI 853NL would involve greater risk, time and costs than we can justify. We will now focus our resources on our later-stage products that are more promising and carry greater near-term market potential. We will also accelerate the development of additional pre-clinical compounds based on our proprietary platform technology."

Acne is the most common inflammatory skin disease of adolescence and early adulthood. New preclinical data demonstrate that Micrologix’s peptides have significant anti-inflammatory properties. In an in vivo animal model of hypersensitivity (allergic reaction), MBI’s peptides showed a marked reduction in the inflammatory response, similar to that of hydrocortisone, which is acknowledged to be a potent anti-inflammatory agent. This important property strengthens the data to support that MBI 594AN, currently in a Phase II clinical trial, will be effective in treating acne. Previously, the Company has reported preclinical and clinical data on the antibacterial properties of MBI 594AN, including activity against antibiotic-resistant strains of Propionibacterium acnes – the most important bacterium associated with acne. In addition to acne, this data suggests that MBI’s peptides hold promise for treating other dermatological conditions.

Micrologix develops novel drugs targeted at severe and life-threatening diseases — particularly those caused by antibiotic-resistant bacteria. The Company’s portfolio of antibiotic drug candidates is based on improved analogs of naturally occurring cationic peptides found in the host defense systems of most life forms. Micrologix currently has two drugs in clinical trials in the United States: MBI 226 for preventing catheter-related bloodstream infections in Phase III clinical trials and MBI 594AN for treating acne in Phase II. The Company’s common shares are included in the TSE 300 Composite Index.

William J. (Bud) Foran

Chairman, President & CEO