Tranzyme Pharma

May 13, 2005 07:00 ET

Tranzyme Pharma Completes US$32 Million Financing

RESEARCH TRIANGLE PARK, N.C. and SHERBROOKE, Quebec--(CCNMatthews - May 13, 2005) -

Tranzyme Pharma, a leading biopharmaceutical company developing novel mechanism-based therapeutics for the treatment of gastrointestinal (GI) disorders, announced today that it has completed an oversubscribed round of private financing, raising a total of US$32 million. The financing was led by H.I.G. Ventures, Thomas, McNerney & Partners and Quaker BioVentures. Additional participants in the round included existing investors, BDC Venture Capital, Desjardins Venture Capital, Pacific Rim Ventures and The Solidarity Fund (FTQ). As part of this financing, US$6 million in previously issued notes have been converted into equity shares.

"This financing is a tremendous example of how leveraging technology from Canada and the United States has brought together investors from both sides of the border," said Jean-Francois Pariseau, Director, BDC Venture Capital. "We are extremely pleased and excited to be a part of this cross-border syndicate," added Fabrice Lucherini, Vice President Technologies, Desjardins Venture Capital.

"We are very pleased that Tranzyme's progress has allowed us to attract an outstanding group of investors," stated Vipin K. Garg, Ph.D., President and Chief Executive Officer of Tranzyme Pharma. "The funds raised in this round of financing will allow us to accelerate the clinical development of our lead compounds and focus on additional discovery and pre-clinical development efforts to expand our pipeline."

The Company's lead product, TZP-101, is expected to enter clinical trials for the treatment of post-operative ileus before the end of 2005. The Company also has novel small molecule compounds in its preclinical pipeline for diabetic gastroparesis, irritable bowel syndrome and functional dyspepsia. Unlike most current therapeutic approaches to GI disorders that address only symptomatic relief, Tranzyme Pharma's "mechanism-based" therapies directly target the site of pathophysiological disturbance and correct the underlying condition.

Upon the close of the financing, three new members have joined the Tranzyme Pharma board of directors: Aaron Davidson, managing director of H.I.G. Ventures, Alex Zisson, venture partner at Thomas McNerney & Partners, and Brenda Gavin, managing partner of Quaker BioVentures.

"Tranzyme's ability to discover, optimize and develop first-in-class drugs combined with their experienced management team makes this an attractive investment opportunity," stated Aaron Davidson, managing director H.I.G. Ventures. "This Company is poised to achieve tremendous success and H.I.G. Ventures is excited to be involved."

About BDC Venture Capital

BDC Venture Capital is a major venture capital investor in Canada, active at every stage of the company's development cycle. For more information, please visit: http://www.bdc.ca.

About Desjardins Venture Capital

Desjardins Venture Capital is the venture capital fund management arm of the Mouvement des caisses Desjardins that manages Capital regional et cooperatif Desjardins. For more information, please visit: http://www.dcrdesjardins.com.

About The Solidarity Fund (FTQ)

The Solidarity Fund (FTQ) is a development capital fund in Quebec that manages CDN$4.3 billion in assets and invests in small and medium-sized businesses. For more information, please visit: http://www.fondsftq.com.

About H.I.G. Ventures

H.I.G. Ventures is one of the largest and most successful venture capital firms in the Southeast United States with more than $550 million of capital under management. For more information, please visit: http://www.higventures.com.

About Pacific Rim Ventures

Pacific Rim Ventures is an international venture capital firm based in Tokyo, Japan, which specializes in investments in the life science industry. For more information, please visit: http://www.pacificrim-ventures.com.

About Quaker BioVentures

Quaker BioVentures is a $280 million venture capital firm dedicated to investing in life science companies located in the Mid-Atlantic region. For more information, please visit: http://www.quakerbio.com.

About Thomas, McNerney & Partners

Thomas, McNerney & Partners, LLC, is a health care private equity firm that invests in life science and medical technology companies. For more information, please visit: http://www.tm-partners.com.

Tranzyme Pharma is a leading biopharmaceutical company developing novel orally bioavailable, small molecule therapeutics for the treatment of gastrointestinal (GI) diseases. The Company's candidate drugs originate from its own discovery pipeline of proprietary compounds with high affinity for validated and druggable targets in the GI tract. Tranzyme is developing mechanism-based therapeutics for post-operative ileus, diabetic gastroparesis, irritable bowel syndrome (diarrhea-type) and functional dyspepsia and is on track to enter the clinic with its first product by the end of 2005. Tranzyme is leveraging its technologies through internal programs and partnerships to drive the discovery and development of new therapeutics. For more information visit: http://www.tranzyme.com.

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