Press Release
NeurogesX Receives $22 Million in New Equity to Develop Pain Treatments
San Carlos, Calif. - January 23, 2002NeurogesX, Inc., a neuroscience-based specialty pharmaceutical company initially focusing on the development of products for the treatment of pain, today announced it has raised $22.86 million in a Series B round of funding. Leading the round was new investor Walden International and affiliated entities. Other firms participating in the round included Series A investors Alta Partners, ARCH Venture Partners and Montreux Equity Partners, as well as Grove Street Advisors for CalPERS, TIAA (Teachers Insurance and Annuity Association), Duke University and the University of North Carolina. The company has raised $30.4 million in total equity investments since its first funding round in June 2000.
According to Wendye Robbins, MD, president, chief medical officer and founder of NeurogesX, there are two basic types of pain: tissue injury pain and neuropathic pain. "Pain resulting from tissue injuries subsides, over time, when the damaged tissue heals," said Robbins. "In contrast, neuropathic pain results from damage to the sensory nervous system and can be caused by trauma, disease, surgery or chemical injury. Damaged nerves may signal pain even in the absence of tissue injury or pain-causing stimuli and the resulting condition is usually chronic or debilitating."
At least 9 million U.S. patients suffer from chronic pain associated with diseases such as diabetes, HIV, and shingles or the lingering effects of trauma. Many millions more suffer from pain-causing conditions such as cancer, severe osteoarthritis and back pain.
"The increasing demand by the medical community and an aging population for more effective pain control provides a large market opportunity for companies focusing on chronic pain and other nerve signaling disorders," said Howard Palefsky, chairman and CEO of NeurogesX. "In addition to addressing the markets for pain management, we expect to extend our expertise in neurobiology to other medical conditions brought about by aberrant nerve signaling where our specific experience and technology can apply."
"The few treatments now available for chronic pain are either limited in their effectiveness or have multiple side effects because they need to be taken chronically and act systemically," said Gary Stroy, a general partner of Walden International, a global venture capital firm. "NeurogesX has the science, clinical experience and management team to push the field of pain management to the next level."
NeurogesX (neur-o-GEE-six) now has four products in pre-clinical and clinical stages—all of which are for the treatment of pain. The initial product, Transdolor(TM) Pain Treatment System, is based on the pain-relieving effects of capsaicin, which is a naturally occurring molecule found in chili peppers with a well-established safety profile in medicinal and culinary use. The initial application for Transdolor, which is in clinical trials, will be the treatment of neuropathic pain. The company is also developing non-capsaicin based pain treatment products for treating a variety of pain conditions, including neuropathic, post-surgical, injury and trauma. NeurogesX is also exploring alliances with other companies and researchers working in the field of neuroscience and pain management.
About NeurogesX
NeurogesX is a privately held specialty pharmaceutical company focusing on the development of products for the treatment of nerve signaling disorders. The company's initial products are focused on the treatment of chronic and acute pain. The company will also apply its basic science and clinical expertise in neurobiology to develop treatments for non-pain indications caused by aberrant nerve signaling.
For more information about NeurogesX, see its website, www.neurogesx.com.
The equity securities sold by NeurogesX in this round of financing have not been registered under the Securities Act of 1933 and have been sold pursuant to an exemption from the registration requirements of such act.
Note to Editors: NeurogesX and Transdolor are trademarks of NeurogesX, Inc. All other trademarks and registered trademarks are those of their respective companies.
Contacts:
Anthony A. DiTonno
CEO and President
NeurogesX, Inc.
aditonno@neurogesx.com
650-508-2116
Stephen F. Ghiglieri
CFO
NeurogesX, Inc.
sghiglieri@neurogesx.com
650-508-2116
Mike Jackman
Jackman Communications
mike@jackman.com
415-388-3216