Archimedes Pharma raises GBP65 million in new funding

- Appoints new Chief Executive Officer to Accelerate Growth of Business

- US Commercial Operations to be Established

Archimedes Pharma ("Archimedes"), the leading specialty pharma company, today announced that it has raised GBP65 million (approx US$100 million) in new funding. The round was led by new investor Novo Growth Equity, the growth equity fund of Novo A/S, and included participation by major current investor, Warburg Pincus, a global private equity firm. Archimedes also announced the appointment of a new President and Chief Executive Officer, Jeffrey H. Buchalter, formerly President and Chief Executive Officer of US-based Enzon.

The funding round is the largest raised by a private European biopharma company in the last 15 years and is Novo Growth Equity's first investment since it was established at the beginning of 2009. The funds will be used to establish Archimedes' operations in the US and support the growth of the successful specialty pharma business in Europe. The funds will also be used to support the global commercial launch of PecFent*, Archimedes' innovative, simple-to-use, fentanyl nasal spray for the treatment of breakthrough cancer pain. PecFent has been filed for approval in Europe and the US and is expected to be approved for commercial sale in both regions during 2010. PecFent is supported by an extensive phase III clinical development programme in which the product met all primary and secondary end-points. Crucially, the phase III studies demonstrated that PecFent showed onset of pain relief within five minutes of dosing, statistically significant improvements in pain relief versus immediate release morphine, together with high levels of patient acceptability and consistent effectiveness in use.

Jeffrey H. Buchalter has over 20 years experience in the pharmaceutical industry and has held senior positions at a number of multinational pharmaceutical companies. He was most recently President and CEO of Enzon Pharmaceuticals, the US biopharmaceutical company focused on the development, manufacturing and commercialisation of therapies for patients with cancer and other life-threatening conditions. Prior to this, he was CEO of ILEX Oncology, where he led the transformation from a drug development company to a high quality oncology franchise with established commercial operations. He has also held key positions at Pharmacia, Wyeth and Schering Plough.

Simon Turton, Managing Director of Warburg Pincus, said: "We have supported Archimedes since its foundation in 2004 and are delighted to invest again in such an exceptional company as it enters a new stage in its growth. We are particularly pleased to welcome Jeff as President and CEO and to the Board of Archimedes. His vast experience and knowledge of the pharmaceutical industry, and specifically oncology, will be instrumental in accelerating the Company's success through an international platform. This major injection of funding and the appointment of Jeff as the new President and CEO mark the beginning of a new phase in Archimedes' growth plans."

Ulrik Spork, Managing Partner of Novo Growth Equity, said: "We have been impressed with the successful track record of Archimedes over the last five years, and are very pleased to contribute to the further transformation of the Company with the launch of PecFent, Archimedes' nasal fentanyl spray, in Europe and US. Archimedes represents an ideal investment opportunity for us and supports our strategy to take major stakes in promising late stage life sciences companies with near-term commercial potential."

Jeffrey H. Buchalter, President and Chief Executive Officer of Archimedes, commented: "Archimedes is at a transformational stage in its development. It has built up a successful specialty pharma business in Europe and has filed its lead product, PecFent, for product approval in both Europe and the US. I am delighted to join as President and CEO to accelerate the expansion of Archimedes' business in Europe, support the commercialisation of PecFent, and build the operations in the US market."

SOURCE Archimedes Pharma