"We are pleased that VDDI has chosen to work with Paradigm in the development of a treatment for serious bacterial infections and to use our MetaVantage™ platform in its antibiotic and anti-fungal drug development efforts" said John A. Ryals, Ph.D., President and Chief Executive Officer of Paradigm. "Our MetaVantage™ platform is a powerful technology that can prioritize leads quickly, providing critical information to advance preclinical development. In our newly emerging efforts in human health to develop drugs for ourselves and our partners, we are excited to enter into this revenue-generating collaboration with VDDI."

"We are delighted to collaborate with Paradigm in this development program. We chose to work with Paradigm because we believe that Paradigm's MetaVantage™ technology is an innovative technology platform that will dramatically increase the chances that we can develop novel antibiotics in the shortest time possible," said Porter.

In March, VDDI will be awarded a multi-year contract of $23 million from the Department of Defense for the research and development of antibiotics for the treatment of anthrax. The Contract underwrites the cost of developing a "small molecule treatment," pre-clinical studies, Food & Drug Administration filings, and human trials. The antibiotic that VDDI and Paradigm are developing was originally funded under a $6 million Defense Advanced Research Projects Agency (DARPA) grant to the UAB Center for Biophysical Sciences and Engineering. Due to the critical nature of finding treatment for anthrax, products developed under this program could receive expedited FDA review.

"We believe that with this collaboration, VDDI can develop an antibiotic for the treatment of anthrax within the next 48 months," continued Porter. "Such a treatment could have a potential market of as much as $650 million annually, with a potential $150 million market for U.S. military use and another $500 million dollars from friendly nations in Europe and elsewhere. Three years ago, when VDDI started this project, Bacillus anthracis was just an obscure agricultural pathogen with interesting biological properties but since early October, five people have died of anthrax and 13 others were infected from a series of anthrax-contaminated mailings. As a result, anthrax is now front and center in clinician's mind and there is clear recognition that there is a desperate need for better treatments for anthrax. With the collaboration with Paradigm, we are confident that we can develop innovative products that address this critical need."

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