Paratek Pharmaceuticals Announces the Close of $40 Million Private Placement to Finance Programs to Combat MRSA Infections

Oct 25, 2007, 01:00 ET from Paratek Pharmaceuticals, Inc.

    BOSTON, Oct. 25 /PRNewswire/ -- Paratek Pharmaceuticals, Inc. announced
 today that it has closed the first tranche of a $40 million private
 financing. Aisling Capital led the round, with additional participation by
 new investors, D.E. Shaw and Boston Life Science Venture Corporation, and
 current investors, Nomura Phase4 Ventures, Novartis BioVentures, BioFund
 Ventures, HBM BioVentures, Lombard Odier Darier Hentsch, BioVeda Fund and
 Hercules Technology Growth Capital. The second and final tranche is
 expected to be closed in early 2008. Pacific Growth Equities served as
 placement agent for the financing.
     Proceeds of the financing will be used primarily to advance Paratek's
 lead programs to develop broad-spectrum antibiotics, including two
 antibiotics for the treatment of resistant bacterial infections such as
 those caused by Methicillin-Resistant Staphylococcus aureus (MRSA). Recent
 media attention on the dramatic increase in invasive MRSA infections, as
 published in the October 17, 2007 issue of the Journal of the American
 Medical Association (JAMA), has highlighted the dire need for new
 antibiotics to combat these infections in both the hospital and community
 settings. Paratek has designed two broad- spectrum antibiotics that have
 been shown to work against susceptible bacteria found in most common
 infections, as well as antibiotic resistant bacteria such as MRSA,
 vancomycin-resistant Enterococci (VRE) and penicillin-resistant
 Streptococcus pneumoniae (PRSP).
     Paratek's most advanced broad-spectrum antibiotic, PTK 0796, is
 currently being developed to treat serious, often life-threatening
 infections that require a hospital visit such as complicated skin and skin
 structure infections (cSSSI) and moderate to severe community-acquired
 pneumonias (CAP). Oral and intravenous (IV) forms of PTK 0796 are being
 studied in comparison to Zyvox(R) in an ongoing Phase 2 clinical study of
 patients with cSSSI. The study is anticipated to complete enrollment this
 December. Funding from the financing will allow for the completion of
 studies necessary to initiate Phase 3 studies in cSSSI and CAP by mid-2008.
 The financing will also help Paratek continue development of a novel
 community-based broad-spectrum antibiotic that has been designed
 specifically to treat MRSA and other important bacterial infections in the
 physician's office setting. This community-targeted oral antibiotic will be
 distinct from PTK 0796 and is expected to begin Phase 1 clinical studies in
     Thomas J. Bigger, President and CEO of Paratek Pharmaceuticals, stated,
 "This financing will be critical in advancing Paratek's work in serious and
 life-threatening infections caused by both susceptible and resistant
 bacteria. We are fortunate to be working with informed private investors
 who have recognized the serious problems facing physicians in both hospital
 and community settings due to resistant bacteria such as MRSA and have
 determined that Paratek's programs represent a promising solution that
 could generate significant value. This financing will allow Paratek to
 bring our broad- spectrum antibiotic into Phase 3 clinical studies, the
 final tests needed before a product may be approved for use."
     As part of the financing, Anthony Sun, M.D., Principal of Aisling
 Capital, will join Paratek's Board. Dr. Sun commented, "We are excited to
 be involved with Paratek Pharmaceuticals; our fund is committed to
 providing financial support to companies developing innovative solutions to
 serious diseases. Combined with a seasoned management team, Paratek is well
 positioned to address problems of bacterial resistance."
     About Paratek Pharmaceuticals
     Paratek Pharmaceuticals, Inc. is engaged in the discovery and
 commercialization of new therapeutics that treat serious and
 life-threatening diseases, with a particular focus on the growing worldwide
 problem of antibiotic resistance. Paratek is advancing novel compounds that
 can circumvent or block bacterial resistance. Paratek's lead compound, PTK
 0796, is a broad spectrum antibiotic derived from the tetracycline class
 with oral and IV formulations that is being developed for the treatment of
 the most common serious hospital bacterial infections, including those
 caused by resistant strains such as MRSA (methicillin-resistant
 Staphylococcus aureus). Oral and IV formulations of PTK 0796 are currently
 being compared to Zyvox(R) in a Phase 2 clinical study in complicated skin
 and skin structure infections (cSSSI). In addition to PTK 0796, Paratek is
 also developing a community- targeted broad-spectrum antibiotic and
 narrow-spectrum antibiotics to treat acne and C. difficile
 associated-diarrhea based on its novel tetracycline chemistry expertise.
     Outside of its tetracycline program, Paratek has also identified small
 molecules that inhibit bacteria-specific proteins called Multiple
 Adaptational Response (MAR) proteins that control bacterial infectivity and
 resistance development. MAR inhibitors would be used to prevent
 life-threatening and debilitating infections such as ventilator-associated
 pneumonia (VAP) and hospital acquired pneumonia (HAP) and to enhance the
 activity of antibiotics against resistant bacteria, and since they do not
 directly attack bacteria, they would be less likely to engender resistance
     Based upon a growing body of clinical research and as part of its
 effort to exploit its novel tetracycline derivatives and their unique
 mechanism of action in selected inflammatory and neurodegenerative
 conditions, Paratek has an active chemical synthesis effort to produce
 novel and diverse small molecules, with the goal of developing
 non-antibacterial compounds with improved activity in serious inflammatory
 and neurodegenerative diseases. Paratek's most advanced projects in this
 area are its multiple sclerosis, rheumatoid arthritis and ischemic stroke
     Paratek has active collaborations with Merck, MerckSerono,
 Warner-Chilcott and FSMA to develop orally available small molecule drugs
 for community bacterial infections, multiple sclerosis, acne & rosacea, and
 spinal muscular atrophy (SMA), respectively. Paratek is privately held and
 headquartered in Boston, Massachusetts, USA. For more information about
 Paratek and its research and development initiatives, visit Paratek's
 website at

SOURCE Paratek Pharmaceuticals, Inc.