I. FINANCING OF PRIVATE BIOTECHNOLOGY COMPANIES: $61.1M

Company

Location

Date

Amt. (M)

Investors

Aclara BioSciences Inc. (mezzanine)

Hayward, Calif.

2/23

$15

Alta Partners led this financing round; it was joined by new investors AM Pappas, Bluewater Capital, GIMV Investment Corp. and Singapore BioInnovations; current investors Ampersand Ventures and CMEA Ventures also participated; SG Cowen Securities Corp. acted as the placement agent

Arena Pharmaceuticals Inc.
(3rd round)

San Diego

2/22

$17

Arena raised $17M through the sale of its Series D preferred stock in this oversubscribed offering; co-lead investors were MPM Asset Management LLC and International Biomedicine Management Partners Inc.; also participating were Tripos Inc., OrbiMed Advisors LLC and AM Pappas & Associates; ING Baring Furman Selz LLC acted as the placement agent

Biostar Inc. (mezzanine)

Saskatoon, Saskatchewan

2/18

$2.1

Biostar closed the 3rd tranche of a US$9.9M financing announced 1/98; investors in this round included the Business Development Bank of Canada, Canadian Medical Discoveries Fund, CIC Industrial Interests Inc., MDS Health Ventures, Royal Bank Capital Corp., Saskatchewan Government Growth Funds III and IV and Working Ventures Canadian Fund Inc. (prices converted at a rate of C$1.50/US$1)

IntraBiotics Pharmaceuticals Inc.

Mountain View, Calif.

2/1

$23

International Biomedicine Management Partners led this financing round; new investors (mezzanine) included the Kaufmann Fund, Vulcan Northwest Ventures, New England Partners, OrbiMed Advisors and unidentified Danish investors; Den Danske Bank and Legg Mason Wood Walker Inc. acted as the placement agents

Pangea Systems Inc.
(2nd round)

Oakland, Calif.

2/22

$4

The company raised an additional $4M in its Series C financing (it raised $15M on 12/14/98); the additional financing was led by The Burrill Agbio Capital Fund and Mitsui & Co. (USA) Inc.

II. MILESTONE PAYMENTS AND EQUITY INVESTMENTS FROM CORPORATE PARTNERS: $16.5m

Company (Symbol)

Partner (Symbol; Country)

Amt. (M)

Triggering Event

Details/Date

Ariad Pharmaceuticals Inc. (ARIA)

Hoechst Marion Roussel Inc. (subsidiary of Hoechst AG; Germany)

$2

Achievement of 2nd milestone

The companies entered an agreement in 11/95 to develop small-molecule drugs that block the activity of the Src protein for treating osteoporosis and other bone diseases; Ariad achieved the 2nd milestone (undisclosed) in the collaboration, triggering the payment (2/16)

Cell Genesys Inc. (CEGE)

Hoechst Marion Roussel Inc. (subsidiary of Hoechst AG; Germany)

$2

European patent on gene activation technology

The companies signed a licensing agreement in 2/97 on Cell Genesys¿ gene-activated erythropoietin (EPO) and a 2nd undisclosed protein; Cell Genesys was granted a European patent on its gene activation technology in 12/98, triggering the milestone payment (2/16)

Genzyme Molecular Oncology(GZMO)

Schering-Plough Corp. (NYSE:SGP)

$5

European patent on p53 gene therapy

The companies signed a licensing agreement in 10/98 on Genzyme Molecular¿s rights to p53 gene therapy; A European patent was granted to The Johns Hopkins University (from which Genzyme Molecular had licensed certain diagnostic and therapeutic rights to the p53 gene, which it then licensed to Schering-Plough); the granting of the patent triggered a $5M milestone payment (2/4)

The Immune Response Corp. (IMNR)

Agouron Pharmaceuticals Inc. (AGPH)

$5

Clinical milestones

The companies entered an agreement in 6/98 to collaborate on the final development and commercialization of the immune-based therapy Remune for treating HIV infection; The Immune Response Corp. received a $5M payment as a results of achieving certain (unidentified) clinical milestones (2/16)

Unigene Laboratories Inc. (UGNE)

Parke-Davis (division of Warner-Lambert Co.; NYSE:WLA)

$2.5

Conclusion of pilot study

The companies signed a licensing agreement on Unigene¿s oral calcitonin for treating osteoporosis in 7/97; Unigene received a $2.5M milestone associated with the conclusion of a pilot human study (2/26)

III. PIPE FINANCINGS: $0m

There were no PIPE financings in February 1999.

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