NeuroMed Technologies Inc. Raises US$32 Million In Series C Round Led By MPM Capital

VANCOUVER, Nov. 4 /PRNewswire/ -- NeuroMed Technologies Inc., a biopharmaceutical company developing next-generation chronic pain drugs, today announced the closing of a Series C financing of US$32 million.

The round was led by MPM Capital, the world's largest dedicated venture capital investor in life sciences with committed capital under active management of more than $2.1 billion. This is the first investment in Canada for U.S.-based MPM Capital and marks the largest private biotech financing in Canada this year.

In addition to MPM, other new investors in the round include Neuro Discovery LP, TriFund Capital (VCC) Ltd. and Cogene Biotech Ventures. Many of NeuroMed's existing original investors participated in the round including GrowthWorks Capital, MDS Capital, BDC Venture Capital and the Royal Bank of Canada.

"The size of this investment and the quality of our investors reflect a strong vote of confidence in NeuroMed and in our potential to commercialize a next-generation chronic pain drug," said Natalie Dakers, NeuroMed's President and CEO. "This investment ranks among Canada's top ten for a private biotechnology company, and we are determined to capitalize on the opportunity it presents."

Ms. Dakers added, "We believe our drug discovery platform offers the key to the development of easily-administered, non-addictive, low side-effect drugs able to bring relief to the millions of people suffering chronic, neuropathic and severe pain. With the backing of MPM and an exceptional group of U.S. and Canadian investors, we look forward to completing a number of major clinical milestones as we progress to commercialization."

The proceeds from this investment will be used to advance NeuroMed's lead compound through to completion of Phase II clinical trials and fund the further development of the Company's extensive preclinical pipeline.

Prescribed pain management is one of the largest pharmaceutical markets in the world and is expected to increase at an annual growth rate of 10% to reach $29.8 billion by 2008, according to Frontline Strategic Consulting.

"The chronic pain market represents a multi-billion dollar commercial opportunity in which patients are currently underserved due to a lack of effective therapeutics," said Kurt Wheeler, General Partner of MPM Capital Ltd. "NeuroMed offers a strong investment opportunity and a promising chronic pain drug with significant clinical advantages over many of the drugs currently on the market. NeuroMed's management team has a proven track record of success, and we are excited to be involved at this juncture of their development activities."

"NeuroMed's scientific expertise is impressive, in both biology and chemistry, based on the groundbreaking calcium channel research of its co- founder and Chief Scientific Officer, Dr. Terrance Snutch, and the company has made excellent progress to date," noted Dr. Ilan Zipkin, Principal with MPM Capital Ltd. "It is rare to find such high quality people combined with a lead compound with blockbuster drug potential, and we are looking forward to supporting the company in its efforts to successfully develop its products."

NeuroMed's drug candidates are aimed at large market segments currently underserved due to either a lack of suitably effective therapeutics (e.g. neuropathic pain and epilepsy) or by drugs fraught with considerable side effects (e.g. morphine for severe chronic pain or benzodiazepines for anxiety). NeuroMed's compounds do not exhibit sedation, constipation, tolerance or addictive properties - all a vast improvement over current therapies.

NeuroMed Technologies has completed preclinical studies for its lead chronic pain drug candidate and is preparing to file its first Investigational New Drug (IND) application to the Food and Drug Administration (FDA) this year.

Mr. Kurt Wheeler and Dr. Ilan Zipkin, both of MPM Capital, will be joining NeuroMed's Board of Directors, which also includes Mr. Darrell Elliott of MDS Capital, Dr. James Miller of Neuro Discovery LP and Ms. Natalie Dakers, President and CEO of NeuroMed.

About NeuroMed Technologies Inc.

NeuroMed is a private biopharmaceutical company developing the next generation of chronic pain drugs with pipeline programs in anxiety and epilepsy. Located in Vancouver, Canada and San Francisco, USA, the Company's drug development programs are designed around validated clinical targets associated with large unmet markets. NeuroMed is the only biotech company focused exclusively on calcium channels as drug targets for treatment of neurological diseases.

About MPM Capital Ltd.

MPM Capital L.P. is a global investment management firm focused solely on life sciences investing. One of the largest investment management firms dedicated to the life sciences sector, MPM Capital has offices in Boston, San Francisco, and Munich. MPM's portfolio includes early stage start-ups as well as large capitalization public companies, representing biopharmaceutical and medical device companies, encompassing platform technology as well as product- driven opportunities. The firm manages over $2.1 billion in assets through the MPM BioVentures Family of venture capital funds and the MPM BioEquities public market funds. More information on MPM can be found at http://www.mpmcapital.com/.

For more information regarding this press release, contact: Bruce Colwill, CA VP, Finance & Chief Financial Officer NeuroMed Technologies Inc. Phone: (604) 822-9970 Corporate Communications Contact Julie Jang Manager, Communications & Human Resources NeuroMed Technologies Inc. Phone: (604) 822-9970 Email: jjang@neuromedtech.com

NeuroMed Technologies Inc.

CONTACT: For more information regarding this press release, contact:Bruce Colwill, CA, VP, Finance & Chief Financial Officer, NeuroMedTechnologies Inc., Phone: 604-822-9970; Corporate Communications Contact,Julie Jang, Manager, Communications & Human Resources, NeuroMed TechnologiesInc., Phone: 604-822-9970, Email: jjang@neuromedtech.com