SCV-07 (γ-D-glutamyl-L-tryptophan) is a new immunomodulatory compound that has been developed and patented both for composition and immunomodulatory use and is a synthetic dipeptide. The efficacy of SCV 07 in treating chronic hepatitis C virus (HCV) infection is expected to arise from the drug's ability to stimulate the T-helper 1 (Th1) type immune response and to block signal transducers and activator of transcription 3 (STAT3) mediated signaling. The purpose of this study is to determine if SCV-07 alone and/or SCV-07 in combination with ribavirin is safe and potentially effective for the treatment of genotype 1 compensated chronic hepatitis C in subjects who have relapsed after a response to a previous treatment course of at least 44 weeks with pegylated interferon and ribavirin. All subjects will receive 4 weeks of SCV-07 (Lead-in Phase), followed by 4 weeks of treatment with SCV-07 in combination with ribavirin (Combination Treatment).

Inclusion Criteria:

• Adult subjects must have compensated liver disease
• Subjects must have a history of chronic hepatitis C (genotype 1), and must be relapsers
• Subject's HCV RNA viral load must be > or = 300,000 IU/mL
• Subjects must have documentation of a liver biopsy within the last 2 years

Exclusion Criteria:

• Human immunodeficiency virus (HIV) infection or hepatitis B surface antigen (HBsAg)-positive
• Clinical evidence of cirrhosis
• Autoimmune hepatitis or other autoimmune/immune-active diseases
• Insulin-dependent diabetes