Press Releases

Virogenomics Spin-off, Artielle ImmunoTherapeutics, Secures $11 Million Equity Financing

June 28, 2004 — Portland, Ore. — Virogenomics, Inc. announced today that it has spun-off its autoimmune disease technology into a new company, Artielle ImmunoTherapeutics, Inc. (Artielle), and raised $11 million in venture capital funding for Artielle. Sanderling Ventures of San Mateo, California, led the financing, joined by UV Partners of Salt Lake City, Utah, Tenex Greenhouse of Burlingame, California, and Northwest Technology Ventures of Portland, Oregon.

Artielle is a privately held autoimmune therapeutics company located in Portland. Its technology, licensed from Oregon Health & Science University (OHSU), is based on a new proprietary class of molecules known as Recombinant T cell receptor Ligands (RTLs) that can be tailored to treat a wide range of autoimmune diseases. Artielle has developed a lead compound for the treatment of multiple sclerosis, called RTL1000, which has received Orphan Drug status from the U.S. Food and Drug Administration. In addition to multiple sclerosis, Artielle is conducting research on other autoimmune diseases, such as rheumatoid arthritis, to which its platform technology is also applicable.

The proceeds from the financing will be used over an estimated three-year period to complete pre-clinical trials, manufacture RTL1000 under current Good Manufacturing Practices (cGMPs), and to complete a Phase I human clinical trial and an initial Phase II trial. Of the $11 million funding commitment, $4 million was advanced in a first closing. The remaining $7 million will be advanced in two subsequent closings upon achievement of certain specified milestones.

"This investment is a strong endorsement of our autoimmune platform technology," said Adolph J. Ferro, Ph.D., President and Chief Executive Officer. "Our animal studies are very encouraging and we look forward to initiating human clinical trials to determine the safety and efficacy of RTL 1000."

"We are delighted to be leading this Series A funding for Artielle," said Peter McWilliams, Ph.D. of Sanderling Ventures. "The RTL technology has the potential to make a significant advance in the treatment of multiple sclerosis as well as a number of other autoimmune diseases. We look forward to working with Artielle's founding scientists as well as their proven and experienced management team to build this Company."

Allan Wolfe, MD, General partner of UV Partners added, "We are enthusiastic about Artielle's technology which has shown great promise in relevant animal models of multiple sclerosis. MS is a devastating disease and the company's approach to developing therapeutics which target specific sub groups of MS sufferers is an exciting concept. We are pleased to be working with an excellent management team and proven co-investors."

"I believe that, in addition to the therapeutic implications of the science, the exciting aspect of the Artielle financing is related to leveraging intellectual capital," said Frank Ruderman, Chairman and Chief Executive Officer of Tenex Greenhouse Ventures. "The investor composition and funding structure leverages the intellectual capital of a set of experienced investors by integrating them with a seasoned science and business management to create an expanded operation and strategic management group. In my opinion, this construct significantly increases the probability of commercial success."

"Artielle is an exciting investment from a number of perspectives," said William Newman, managing director of Northwest Technology Ventures, "as its lead compound from the RTL platform will soon be in clinical trials where clinical proof-of-concept will be demonstrated; the managers and OHSU scientists have shown their ability to efficiently bring science into the clinic; and the company addresses a truly debilitating, unmet medical need."

"Virogenomics and its spin-off Artielle are superb examples of OHSU's commitment to increasingly foster technology transfer and startup industry development in the state of Oregon," said Daniel Dorsa, Ph.D., Vice President for Research of OHSU. "We are pleased that Artielle has secured a large part of its funding from out-of-state sources and will remain here in Oregon. Artielle's formation will make a positive contribution to the economy of the state as well as provide Oregonians with access to cutting-edge therapies."

The initial Board of Directors of Artielle consists of Chairman Peter McWilliams, Ph.D. of Sanderling Ventures; Allan M. Wolfe, M.D., of UV Partners; Frank Ruderman of Tenex Greenhouse; Shahab Fatheazam, Managing Director at Vector Securities International of Deerfield, Illinois, and Adolph J. Ferro, Ph.D., President and Chief Executive Officer of the Company.

In addition to Dr. Ferro, officers of the Company include Gilbert N. Miller, Executive Vice President, Chief Financial Officer and Secretary and Andrew S. Goldstein, Vice President of Product Development. Arthur Vandenbark, Ph.D., Gregory Burrows, Ph.D. and Halina Offner, Ph.D., the OHSU Scientists who discovered the technology will serve as consultants to the Company.