Athenagen Raises $5.69 Million In Series A Financing

MENLO PARK, Calif., Sept. 19 /PRNewswire/ -- Athenagen, Inc., a privately held pharmaceutical company founded by two Stanford University scientists, announced today that it will accept a $5.69 million investment in its first round of financing. The investment consists of $3.19 million that closed last week and an additional funding commitment of $2.50 million upon reaching certain milestones within the next twelve months. The financing was led by Sanderling Ventures and included participation from Life Science Angels.

Athenagen, Inc. is engaged in the development of small-molecule drugs designed to either inhibit or enhance angiogenesis, based on the discovery of a new endothelial cell angiogenesis pathway. Athenagen's lead products are being developed as oral compounds to treat diseases caused by enhanced angiogenesis, such as cancer and age-related macular degeneration (AMD), as well as topical formulations to treat diseases caused by impaired angiogenesis, such as non-healing diabetic foot ulcers. The new angiogenesis pathway was discovered at Stanford University by a team led by Dr. John P. Cooke, a Professor of Medicine in the Department of Cardiovascular Medicine who is also a co-founder of Athenagen.

Earlier this year, Athenagen appointed W. Scott Harkonen, M.D., a leading pharmaceutical industry executive with extensive drug development and private and public equity fund raising experience, as its President and CEO. Previously, Dr. Harkonen was the founder, President and CEO of InterMune, Inc. and the Chairman and CEO of CoTherix, Inc. "Capital raised in this round will be used to take our two lead drug candidates into human clinical trials in 2006. This new angiogenesis pathway gives us a great opportunity to develop novel, orally active drugs for AMD and cancer, and to tackle the problem of non-healing wounds," said Dr. Harkonen.

"We are grateful for the support of Sanderling Ventures, our angel investors and the management team for backing our new technology and allowing us to move our programs into the clinic," said co-founder, Dr. Ken M. Kengatharan, a former pharmaceutical industry executive who is currently a staff member in the Department of Cardiovascular Medicine at Stanford University.

Dr. Robert McNeil, a managing director at Sanderling Ventures, will join Athenagen's board of directors. Athenagen's board also includes Mr. Allan May, co-founder of Life Science Angels and a healthcare industry executive; Dr. W. Scott Harkonen, Dr. John P. Cooke and Mr. Jon Saxe, a pharmaceutical industry veteran who is on the board of directors of several private and public pharmaceutical companies.

CONTACT: W. Scott Harkonen, M.D, President & CEO, of Athenagen, Inc.,+1-650-616-1920

Web site: http://www.athenagen.com//