I. FINANCING OF PRIVATE BIOTECHNOLOGY COMPANIES: $81.9M

Company

Location

Date

Amt. (M)

Details

Biosyn Inc. (1st round)

Philadelphia

7/1

$8.5

Private financing comprised of $7M in equity financing, plus $1.5M of debt converted into common stock; financing was led by Warburg, Pincus Equity Partners LP, a private equity investment fund managed by E.M. Warburg, Pincus & Co. LLC

Elitra Pharmaceuticals Inc. (2nd round)

San Diego

7/20

$16

Private placement was led by Interwest Partners and Walden Group, who were joined by existing investors, Enterprise Partners and Mayfield Fund

Maxygen Inc. (4th round)

Redwood City, Calif.

7/14

$20

Private placement by new and existing investors; existing investors included lead investor Technogen Associates LP; new investors included Lombard Odier, Invemed Fund LP, and CMEA Life Sciences Fund

t. Breeders Inc. (Round ND)

Worcester, Mass.

7/7

$5.95

t. Breeders received an equity capital financing from a syndicate of four venture capital firms led by MPM Asset Management, of Cambridge, Mass., and including Javelin Capital, of Birmingham, Ala.; Seaflower Associates, of Waltham, Mass.; and Zero Stage Capital, also of Cambridge

Third Wave Technologies Inc. (mezzanine)

Madison, Wis.

7/27

$19.5

Third Wave raised $19.5M in a private round of equity financing; new investors included Shroder Ventures International Life Sciences Fund II, The Wellcome Trust, SR One, and MVM Ltd; existing investors in this round included Venture Investors and Kenneth R. McGuire

Triad Biotechnology Inc. (seed)

Rancho Santa Fe, Calif.

7/2

$12

Triad completed a Series A preferred stock financing; investors included Skyline Ventures, GeneChem Technologies Venture Fund, Hambrecht & Quist Life Science Investors, H&Q Healthcare Investors and Lombard-Odier

II. MILESTONE PAYMENTS AND EQUITY INVESTMENTS

FROM CORPORATE PARTNERS: $108.4M

Company (Symbol)

Partner (Symbol; Country)

Amt. (M)

Triggering Event

Details (Date)

Advanced Tissue Sciences Inc. (ATIS)

Smith & Nephew plc (U.K.)

$10

Stock conversion (ND)

A $10M loan from Smith & Nephew was converted into approximately 2.8M shares of the company's common stock as allowed under the terms of the loan agreement; the loan was due and payable in less than a year; the conversion increases Smith & Nephew's interest in the company to about 8% (7/30)

Amarillo Biosciences Inc. (AMAR)

Hayashibara Biochemical Laboratories (Japan)

$3

Phase III clinical trial

Hayashibara will provide Amarillo with three loans of $1M per quarter beginning 8/99 for a total of $3M; the loan will be repayable upon the earlier of 7/04 or one year after FDA approval of low dose oral interferon alpha for any indication (7/19)

Avant Immuno-therapeutics Inc. (AVAN)

Novartis Pharma AG (Switzerland)

$6

Exercise of option to license TP10

Novartis exercised its option to license TP10 in the field of transplantation; Avant will receive a $6M equity investment and milestone payment subject to certain conditions being met (7/19)

BioMarin Pharmaceutical Inc. (BMRN)

Genzyme Corp.

$10

Completion of BioMarin's IPO

Genzyme Corp. purchased 0.77M shares at the IPO price of $13 per share in a private placement totaling $10M (7/23)

Cell Genesys Inc. (CEGE)

Japan Tobacco Inc.

$4.5

Completion of initial Phase I/II trial

The pharmaceutical division of Japan Tobacco Inc. paid Cell Genesys $4.5M milestone upon completion of a Phase I/II trial of GVAX prostate cancer vaccine (7/1)

Cortecs plc (LSE:CCS)

Towa Pharmaceuticals Co. Ltd (Japan)

£1.6 (US$2.6)

ND

Cortecs received a £1.6M milestone payment from Towa Pharmaceuticals as they terminated their agreement on Macritonin, Cortecs' slow-release osteoporosis drug (7/22)

Emisphere Technologies Inc. (EMIS)

Elan Corp. (Ireland; NYSE:ELN)

$15

Restructuring of joint venture agreement

As part of the restructuring of a previous joint venture agreement, Elan will provide Emisphere with up to $15M for Phase III trials of oral heparin; additionally, at conclusion of the joint venture, Emisphere will receive cash payments of approximately $6M owed for past services (7/6)

The Immune Response Corp. (IMNR)

Agouron Pharmaceuticals Inc. (a Warner-Lambert company; NYSE:WLA)

$5

Quarterly payment for research collaboration

Immune Response received a $5M payment from Agouron, $2M of which was for the purchase of more than 0.25M shares of unregistered common stock purchased at a premium to the market; under the terms of the collaboration, Immune Response may receive up to an additional $40M (7/16)

Inflazyme Pharmaceuticals Ltd. (Canada; TSE, VSE:IZP)

Hoechst Marion Roussel

C$4.9 (US$3.3)

Collaborative research agreement

Inflazyme closed on a second tranche of convertible preferred shares; the preferred shares are convertible into common shares at Inflazyme's option any time after one year at a price based on the higher of the common share price at the time of subscription or conversion, up to a maximum of C$9M; Inflazyme will be required to convert the preferred shares into common stock following the completion of Phase IIa for an oral compound from the company's IPL576 series and the H1/NK1 dual antagonists (7/12)

Ligand Pharmaceuticals Inc. (LGND)

Elan Corp. plc (Ireland; NYSE:ELN)

$40

Part of terms of 9/98 alliance

Ligand issued $40M of zero-coupon convertible notes to Elan Corp.; the notes are convertible into Ligand common stock at $14 per share, a premium of about 27% over the 7/14 closing price of $11 (7/15)

NeoPharm Inc. (NEO)

Pharmacia & Upjohn (NYSE:PNU)

$2

Progress in clinical development agreement

NeoPharm received a $2M milestone payment from Pharmacia, the first of several possible under a previous collaboration agreement using NeoPharm's patented drug-delivery in conjunction with Pharmacia's Liposomal Encapsulated Paclitaxel and Liposomal Encapsulated Doxorubicin (7/19)

North American Vaccine (NVX)

BioChem Pharma Inc. (Canada; BCHE)

$6

Pending negotiations on strategic initiatives

North American received a $6M line of credit guarantee from BioChem; if the company draws down the line of credit in full, BioChem will be entitled to receive warrants to purchase 0.75M shares of North American's common stock (7/6)

Vertex Pharmaceuticals Inc. (VRTX)

Kissei Pharmaceutical Co. (Japan)

$1

Filing a marketing application in Japan

Kissei has filed for approval in Japan of a protease inhibitor discovered at Vertex and developed in conjunction with Kissei; in conjunction with the filing, Vertex received a $1M milestone payment from Kissei (7/2)

* Conversion rate of £1 = US$1.62; Conversion rate of Euro1 = US$0.97; Conversion rate of C$1 = US$0.67; ND = Information not disclosed.