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Research and Development ViroStatics' focus is on the development of novel therapeutics in the fields of chronic, life-threatening infections that both improve immune function and suppress pathogen replication. The company's lead candidates are novel antiviral/immune protective compounds for the treatment of HIV/AIDS. ViroStatics has developed an innovative core platform to achieve its goal: antiviral/immune protective compounds called AntiViral-HyperActivation Limiting Therapeutics (AV-HALTs). ViroStatics has successfully established the Proof of Concept in man for this new class of antiviral/immune protective agents that it has pioneered, using its two-drug first generation AV-HALT, VS411. Having successfully fulfilled its goal with VS411, ViroStatics is today focused exclusively on the development of its second generation AV-HALTs that combine the dual modes of action in a single molecule. Utilizing the data and know-how that we have accumulated through our VS411 clinical studies, we have developed a proprietary multi-parameter screening process for the identification of second-generation AV-HALT compounds. Establishing the appropriate clinical development target profile for a second-generation AV-HALT is not a simple matter. ViroStatics is in a unique position, given the extensive laboratory and clinical experience that we have accumulated in this field over the past 6 years, to rapidly assess the potential for a compound to fit this profile. Indeed, we are the only company to have accumulated sufficient data in the clinic that is essential for establishing the clinical development target profile for an AV-HALT. Moreover, our clinical experience provides us with the expertise and know-how needed to expeditiously bring compounds forward through clinical development. The Company has several product candidates in development as second-generation AV-HALTs displaying pronounced dual antiviral and anti-inflammatory characteristics in a single molecule. As such, they have the potential to effectively protect the immune system from chronic hyperactivation while also reducing viral replication. Biomarkers
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