Cerexa, Inc. Announces Corporate Launch and $50 Million Initial Financing

Management Team Poised to Continue Prior Success

Cerexa, Inc. today announced the formal launch of operations following the successful spin out from Peninsula Pharmaceuticals, Inc. The company also announced the closing of a $50 million round of initial financing led by top-tier healthcare investors. Cerexa, a biopharmaceutical company focused on developing, acquiring and commercializing hospital-based anti-infective therapies for the treatment of patients with life-threatening infections, was formed by the management team that executed the sale of Peninsula Pharmaceuticals to Ortho-McNeil Pharmaceutical, Inc., a subsidiary of Johnson & Johnson. Cerexa expects to initiate Phase 2 clinical trials with PPI-0903, a next-generation, broad-spectrum cephalosporin antibiotic with methicillin-resistant Staphylococcus aureus (MRSA) coverage, in the second half of 2005.

"We are thrilled to be launching Cerexa with such enthusiastic support from top tier investors," said Dennis G. Podlesak, President and Chief Executive Officer of Cerexa. "The Cerexa team has already proven that it has the skill and experience to identify, acquire and develop promising antibiotic product candidates. We now look forward to building a broad portfolio of other breakthrough hospital-based therapeutics around PPI-0903, our lead compound."

Cerexa’s $50 million round of initial financing was co-led by Frazier Healthcare Ventures and New Leaf Venture Partners, founded by the former members of Sprout Group’s Healthcare Technology venture team. The round also included significant participation from Cerexa’s existing stockholders, including Domain Associates, Canaan Partners, OrbiMed Advisors, A.M. Pappas & Associates, Montreux Equity Partners, EGS Heathcare and CDIB BioScience Ventures. Patrick Heron, General Partner of Frazier Healthcare Ventures, and Ron Hunt, Managing Director of New Leaf Venture Partners, will both join the Cerexa’s board of directors.

"There is a significant need for breakthrough broad-spectrum antibiotics such as PPI-0903, particularly as bacterial strains increasingly become resistant to current antibiotics," said Patrick Heron. "PPI-0903’s broad-spectrum of activity against resistant gram-positive bacteria as well as gram-negative strains caused Cerexa to attract both substantial investor and pharmaceutical partner interest."

"This is a promising time to be investing in the antibiotics market, which is experiencing a renewed interest as evidenced by some of the recent transactions we’ve seen in the space," commented Ron Hunt. "Not only does Cerexa have a potential blockbuster asset with PPI-0903, but this team has the experience and skills in place to build a successful company with a broad portfolio of novel anti-infective products."

About PPI-0903
PPI-0903 is a next-generation cephalosporin antibiotic, which is the most frequently prescribed class of antibiotics in the world. Unlike currently marketed cephalosporins, PPI-0903 has demonstrated in vitro potency against the most resistant strains of Gram-positive bacteria, including methicillin-resistant Staphylococcus aureus (MRSA), penicillin-resistant Streptococcus pneumoniae (PRSP) and vancomycin-resistant Staphylococcus aureus (VRSA) – bacteria responsible for high-rate mortality in the hospital setting. PPI-0903 has also demonstrated in vitro activity against many common Gram-negative bacteria, exemplifying its potential as a broad-spectrum antibiotic. Cerexa licensed from Takeda Pharmaceutical Company Limited the exclusive right to develop and commercialize PPI-0903 in all countries worldwide except Japan.

About Cerexa
Cerexa, Inc., located in Alameda, California, is a biopharmaceutical company focused on developing, acquiring and commercializing antibiotics to treat life-threatening, hospital-based infections. The company is led by a highly qualified team of experts with extensive experience in the development and commercialization of anti-infective products, and intends to leverage this experience to expedite the clinical development of its product candidates. Cerexa’s lead compound is PPI-0903, a next-generation cephalosporin currently being investigated as a potential treatment for complicated skin and skin-structure infections, as well as community-acquired and hospital-acquired pneumonias. For additional company information, please visit http://www.cerexa.com.