I. FINANCING OF PRIVATE BIOTECHNOLOGY COMPANIES: $293.7M

Company

Location

Date

Amt. (M)

Details

Active Pass Pharmaceuticals Inc.

Vancouver, British Columbia

8/4

C$5 (US$3.37)

Active Pass concluded a financing of C$5M, led by the Western Technology Seed Investment Fund, and jointly managed by Ventures West, Cascadia Pacific and the Business Development Bank of Canada; investors included Working Opportunity Fund and Navigator Canadian Technology Fund, as well as new investors Future Fund Capital Corp.,BioFuture Fund Capital Corp., and a group of individual investors

AeroGen Inc.

Sunnyvale, Calif.

8/9

$16.9

AeroGen completed a $16.9M private placement; existing investors included CMEA, Wheatley Partners, Invesco Funds Group Inc., Viridian Capital and Interwest Partners; new investors included MVI Medical Venture Investments Limited, The Kaufmann Fund and Hunt Ventures LP

Arakis Ltd.

Cambridge, England

8/29

#4(US$6.01)

Arakis raised #4M from MB Venture Capital Fund I and the Merlin Biosciences Fund, #2M from each; the financing will be made in two tranches, one immediately and one Feb. 2001

Atairgin Technologies

Inc.

Irvine, Calif.

8/23

$7.2

Atairgin completed a private placement Series D round of financing totaling $7.2M; investors included Fremont Ventures and new investors LabInvest Associates Inc. and Oakwood Medical Investors of St. Louis

BioQuest Inc.

Houston

8/25

$3

BioQuest closed an initial $3M investment by Merck Finck & Co.; the investment is part of a private placement of up to $6M in Series A 8% convertible preferred stock; the stock is convertible at $4 per share and each share will be accompanied by one half a warrant to purchase a share at $5

CombiMatrix Corp.

Snoqualmie, Wash.

8/3

$36

CombiMatrix raised $36M in a private financing; investors included Acacia Research, Emerging Growth Management, JDS Capital, OrbiMed Advisors, Oracle Partners, SAC Capital Management, Seneca Capital and Wheatley Partners, among others

Cytos Biotechnology

Zurich, Switzerland

8/2

CHF50 (US$32)

Cytos received CHF50M (US$32M) in a second round of venture capital financing

Elitra Pharmaceuticals Inc.

San Diego

8/23

$22

Elitra completed a $22M preferred stock financing, its third round with financial investors

Evolutec Ltd.

Oxford, England

8/16

#2.7(US$4)

Evolutec raised #2.7M (US$4M) in its second round of fund raising

Hyalose LLC

Oklahoma City

8/25

$0.15

Hyalose received a $150,000 commitment from the Oklahoma Center for the Advancement of Science and Technology

Integrative Proteomics Inc.

Toronto

8/17

US$8

Integrative Proteomics completed an initial US$8M equity financing, involving a range of U.S., European and Canadian investors; investors included Lombard Odier Immunology Fund and CC Capital Partners Inc.

Morphochem AG

Munich, Germany

8/2

EUR40.7 (US$37.5)

MorphoChem raised $37.5M as part of a third round private placement; investors included Techno Venture Management, Alta Partners, IKB Venture Capital, Alta Berkeley, Domain Associates and 3i Bioscience Investment trust; new investors led by Merlin BioSciences, included Nomura International, Julius Bar, West LB and Viscardi, as well as private investors

MorphoGen Pharmaceuticals Inc.

San Diego

8/23

­

MorphoGen received its initial round of equity funding, raising an undisclosed amount

NeuralStem

College Park, Md.

8/8

$5

NeuralStem completed a $5M Series B financing from SJRJ LLC, an investment company

Panacea Pharmaceuticals

Rockville, Md.

8/3

­

Panacea closed its initial round of financing, raising an undisclosed amount

Revotar Biopharmaceuticals AG

Germany

8/1

DM30 (US$14.2)

Texas Biotechnology Corp. entered into an agreement for the initial financing of its German subsidiary, Revotar Biopharmaceuticals AG, with equity investments by bmp AG and Mediport AG; Revotar raised DM 10M in equity and has in place funding through government grants and loans expected to increase start-up funding to DM 30M

Syrrx Inc.

San Diego

8/3

$5.07

Syrrx completed a $5.07M Series A round of venture financing; participants included Bay City Capital, Chemicals and Materials Enterprise Associates, MPM Asset Management, and Versant Ventures

Targacept Inc.

Winston-Salem, N.C.

8/24

$30.4

Targacept completed a $30.4M private placement; the lead investor was EuclidSR Partners; other investors were Burrill & Co., Advent Venture Partners, Auriga Ventures, CDCInnovation, Genavent, Societe Generale Asset Management Finance and Longleaf Venture Fund

Xcyte Therapies Inc.

Seattle

8/16

$28

Xcyte closed a $28M Series D equity financing; investors included Alta Partners, ARCH Venture Partners, Falcon Technology Partners, Fluke Capital Management, The Sprout Group/DLJ, Tredegar Investments and Vulcan Northwest; new investor MPM Capital led the round, with additional funding from Vector Fund Management and MGN Opportunity Group

Xenova Group plc

Slough, UK

8/4

$11.7

Xenova received payment for 1.5M units offered under the open offer for 2.89M units at 345 pence (US$5.18) per unit; the remaining 1.4M units will be taken up by investors pursuant to the placing by Nomura International plc

II. MILESTONE PAYMENTS AND EQUITY INVESTMENTS FROM EXISTING CORPORATE PARTNERS: $19M

Company (Symbol)#

Partner (Symbol; Country)

Amt. (M)

Triggering Event

Details (Date)

Avax Technologies Inc. (AVXT)

Australian Vaccine Technologies Ltd.

$3

Equilty purchase

Avax Technologies' Australian joint venture, Avax Australia Pty. Ltd., received $3M from the joint venture's partner, Australian Vaccine; this is the final payment in investments totaling $10M for a 50 percent interest in Avax Australia (8/23)

DeCode Genetics (DCGN)

F. Hoffmann-La Roche(Switzerland)

ND

Development milestone

deCode scientists mapped a novel gene that contributes to the occurrence of the common form of Alzheimer's disease; deCode received an undisclosed milestone payment (8/18)

Enchira

Biotechnology

(ENBC)

Genencor International Inc.(GCOR)

$1

Follow-on agreement

Genencor will provide $1M of funding to Enchira over the next two years as part of a follow-on to a licensing agreement made in May, under which Genencor gained access to Enchira's technology to develop gene-based products (8/28)

Exelixis Inc.(EXEL)

Genoptera LLC*

ND

Development milestone

Genoptera, a joint venture between Exelixis and Bayer AG, selected several novel insecticide targets for assay development and screening, triggering an undisclosed milestone payment to Exelixis (8/10)

Paradigm Genetics Inc. (PDGM)

Pharmacia Corp.(NYSE:PHA)

ND

Development milestone

Paradigm exceeded milestones in a functional genomics collaboration with Pharmacia by delivering 20 percent moregene function data than required, triggering an undisclosed milestone payment (8/21)

Phylos Inc.*

Amgen Inc.(AMGN)

ND

Development milestone

Phylos reached milestones in its collaboration with Amgen to identify high-affinity binding agents to potential therapeutic targets; financial details of the achievement were not disclosed (8/24)

Rosetta Inpharmatics Inc. (RSTA)

Agilent Technologies Inc. (NYSE:A)

$10

IPO

Agilent invested $10M in Rosetta through a private placement concurrent with Rosetta's IPO (see p. 4)

Targeted Genetics Corp. (TGEN)

Elan Corp. plc (Ireland; NYSE:ELN)

$5

Investment agreement

Elan agreed to make a $5M equity investment in July 1999 when a joint venture was established, and Elan agreed to an additional $5M investment on the one-year anniversary date of the agreement; the 382,739 issued shares were priced at a premium to Targeted's average closing share price (8/16)

Notes:
# Unless otherwise indicated, shares are traded on the Nasdaq exchange
* Denotes privately held company.

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