WASHINGTON--(BUSINESS WIRE)--July 24, 2006--Prestwick Pharmaceuticals, Inc., announced today that it has raised $60 million dollars in a Series C financing that will be used to develop and commercialize its pipeline of product candidates for the treatment of central nervous system (CNS) disorders, including the company’s lead product candidate XENAZINE® (tetrabenazine), which is under review by the U.S. Food and Drug Administration (FDA) for the treatment of chorea associated with Huntington’s disease (HD). Warburg Pincus, a new investor, led the round of financing and was joined by existing investors including Atlas Venture, BA Venture Partners, CNF Investments, Pequot Ventures, Sofinnova Ventures, and Vivo Ventures. As part of the financing, Prestwick received $30 million and will receive the additional $30 million upon the satisfaction of certain conditions.
“We are delighted to have Warburg Pincus join our longstanding and highly regarded investor syndicate in this major round of financing for the company,” said Arthur M. Mandell, President and Chief Operating Officer, Prestwick Pharmaceuticals. “The proceeds from this Series C round will enable us to advance the development and commercialization of our product pipeline and fuel our mission to become a leading specialty pharmaceutical company serving the CNS market.”
Commenting on the investment, Stewart Hen, a Managing Director at Warburg Pincus said, “Prestwick has a rich portfolio of CNS drug candidates led by tetrabenazine for chorea associated with Huntington’s disease. We are pleased to lead the Series C financing and to be partnering with the high quality existing investors and management team to guide the company through its next phase of growth.” In conjunction with the financing, Mr. Hen will join the Prestwick Pharmaceuticals Board of Directors.
Prestwick is currently managing a portfolio of pipeline product candidates being studied for CNS conditions with significant unmet needs, including Huntington’s disease, Parkinson’s disease, restless legs syndrome, schizophrenia, autism, Alzheimer’s disease, and sleep apnea.
Prestwick recently received an approvable letter from the FDA for XENAZINE®, which is a highly selective and reversible dopamine depletor that works by inhibiting vesicular monoamine transporter 2 (VMAT2). The company is currently awaiting a review of its New Drug Application (NDA) at an upcoming public meeting of the Peripheral and Central Nervous System Advisory Committee. XENAZINE® is the first product for which an NDA has been filed in the U.S. for treatment of chorea associated with Huntington’s disease. The FDA has granted tetrabenazine Orphan Drug and Fast Track status because HD affects only an estimated 30,000 patients in the U.S. and there are no other drugs approved to treat chorea.
Chorea, a debilitating feature of a number of neurological diseases, is characterized by excessive, involuntary, and repetitive movements, which may involve the face, limbs, or the entire body. In HD, it is the result of over activity of the neurotransmitter dopamine. XENAZINE® is approved in eight markets outside of the U.S. and is currently marketed by Prestwick Pharmaceuticals Canada as NITOMAN®.
About Prestwick
Prestwick Pharmaceuticals, Inc. is a product-based specialty pharmaceutical company engaged in the development and marketing of small molecule drugs for chronic diseases of the central nervous system. Based in Washington, DC, the company was formed in November 2002, and is privately held.
Prestwick Pharmaceuticals has rights to a portfolio of five product candidates obtained under licenses from third parties that are being studied for a range of CNS conditions. Tetrabenazine was licensed for marketing in the U.S. and Canada by Cambridge Laboratories (Ireland), Limited (“Cambridge”), which has worldwide rights to the product. Cambridge markets the product itself in the UK and Eire (Ireland), and through marketing partners in European and other markets.
www.prestwickpharma.com
About Warburg Pincus
Warburg Pincus has been a leading venture capital and private equity investor since 1971. Throughout its 35-year history, Warburg Pincus has invested at all stages of a company’s life cycle, from venture capital and growth capital investments to leading restructurings, recapitalizations and buy-outs. The firm currently has more than $10 billion under management and invests in a range of sectors including healthcare, information and communication technology, LBOs and special situations, media and business services, real estate, energy, and financial services. Warburg Pincus’ health care practice has invested more than $4 billion of equity across a wide range of companies across the globe, including approximately $1.5 billion in biotechnology and life sciences companies. The firm has raised 11 private equity investment funds since inception. Currently Warburg Pincus is investing from an $8 billion fund which closed in August 2005. An experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value, Warburg Pincus has offices in North America, Europe and Asia and an active portfolio of more than 100 companies. For more information, please visit www.warburgpincus.com.
Contact: Media MCS Public Relations Ginger Hall, 800-477-9626 gingerh@mcspr.com
Source: Prestwick Pharmaceuticals, Inc.
