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PRESS RELEASE: Poxel Raises EUR16 million in a Series A Financing to Accelerate Pipeline Development

Poxel S.A. / Poxel Raises EUR16 million in a Series A Financing to Accelerate Pipeline Development processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 

Lyon,  France, July 8, 2010 - Poxel SA,  a diabetes drug development specialist,
announces  today that it has raised EUR16 million (USD 19.7 million) in a Series A
round.  Poxel is a  spin off from  Merck Serono. The  financing round was led by
Edmond  de  Rothschild  Investment  Partners  (EdRIP);  other  investors  in the
financing  are  InnoBio  fund,  managed  by  CDC  Entreprises  within FSI France
Investment program and Crédit Agricole Private Equity. A significant part of the
funds  will be used to rapidly advance the company's Iead program, Imeglimin, an
oxidative phosphorylation inhibitor, to treat Type 2 diabetes. 

Imeglimin  is a first-in-class oral anti-diabetic that has demonstrated efficacy
and  safety in  diabetic patients  in two  Phase IIa  trials. Imeglimin is being
developed  in monotherapy and in combination  with key treatments. Imeglimin has
an  innovative mode  of action  that targets  the three  key defects  of Type 2
diabetes,  inhibiting hepatic gluconeogenesis,  increasing muscle glucose uptake
and  restoring  normal  insulin  secretion.  Poxel  has  five  further promising
anti-diabetic  programs in early development. These  also include a new class of
direct AMPK activators close to preclinical development stage. 

"This  substantial funding is  very encouraging and  is a real  testimony to the
potential  of our company", said Thomas Kuhn, CEO at Poxel. "This financing will
help  us advance our  product pipeline and  specifically demonstrate Imeglimin's
clinical potential, both as monotherapy and in combination." 

In  line  with  the  financing,  four  new  members have joined Poxel's board of
directors:  Thierry  Hercend,  MD,  PhD,  and  Chairman  of  the  Board; Raphaël
Wisniewski,  Partner at EdRIP; Olivier Martinez,  PhD, Investment Manager at the
InnoBio  Fund and Bruno Montanari, Investment Manager at Crédit Agricole Private
Equity. 

Mr.  Thierry Hercend, MD, PhD and Chairman of  the board, said: "I am pleased to
work  with such an entrepreneurial team as  well as with this group of reputable
investors.  I am convinced  that the products  in development at  Poxel have the
potential to improve the treatment of Type 2 diabetes." 

Mr.  Raphaël Wisniewski, Partner at EdRIP, stated: "We are happy to have led the
largest  series A  financing round  in France  since 2005 and  assemble a strong
syndicate  to support this promising spin-off that addresses major public health
problems through innovative products." 

Mr. Thibaut Roulon, Investment Officer at CDC Entreprises, commented: "With this
third  investment by InnoBio, we  are glad to finance  a very promising spin-off
with  a strong pipeline of innovative anti-diabetic drugs. This first investment
in  a Series A round also demonstrates  our willingness to support earlier stage
companies, which is shared by InnoBio's subscribers". 

Mr.  Bruno  Montanari,  Investment  Manager  at  Crédit Agricole Private Equity,
added:  "Poxel's  founders  have  a  deep  understanding of their assets and the
diabetes  field. We are  delighted to be  part of a  strong syndicate which will
support the company in delivering promising results". 

About Type 2 Diabetes 

Type  2 diabetes is  defined by  a failure  of sensitive  tissues to  respond to
insulin,  a hormone  involved in  glucose and  fatty acid  metabolism. The World
Health  Organization  (WHO)  estimates  that  Type  2 diabetes  comprises 90% of
diabetic patients worldwide. There are increasing reports of children developing
Type 2 diabetes, which mainly occurs after the age of 40 years. 

The International Diabetes Federation estimates that in 2009, 285 million people
around  the world have diabetes.  This total is expected  to rise to 438 million
within  20 years. Each  year a  further 7 million  people develop  diabetes. The
current  market is dominated by few  product classes and significant unmet needs
remain for both physicians and patients. 

About Poxel SA 

Poxel,  founded  in  2009 is  a  biopharmaceutical company developing innovative
first-in-class  drugs with a primary focus  on Type 2 diabetes. The company will
develop  drug candidates  to clinical  proof of  concept before  partnering with
pharmaceutical  partners. Poxel  was spun  out from  Merck Serono  a division of
Merck  KGaA,  Germany.  Poxel  now  operates  completely independently as a lean
organization with strong in-house drug development expertise. 

Imeglimin,  an oxidative phosphorylation inhibitor, is a first in a new class or
oral  anti-diabetic treatments,  the Glimins.  Imeglimin is delivering promising
clinical  results  and  has  the  potential  to  become  the leading second line
treatment  for Type  2 diabetes either  as a  monotherapy or in combination with
other treatments. Imeglimin acts on three main target organs involved in glucose
homeostasis: the liver, muscle, and the pancreas. 

Imeglimin  benefits from strong differentiation and clear competitive advantages
against  current Type 2 diabetes treatments due  to its efficacy profile and its
strongly enhanced benefit/risk ratio.
Direct AMPK activators developed at Poxel represent a major breakthrough in Type
2 diabetes  treatment as they tackle both hyperglycemia and hyperlipidemia. None
direct  AMPK activators are currently on the market. Poxel's AMPK activators are
oral drugs close to the preclinical candidate stage. 

About Edmond de Rothschild Investment Partners
Paris-based Edmond de Rothschild Investment Partners (EdRIP) is dedicated to
minority investments in privately-owned companies. Currently, EdRIP has 800
Million Euro under management which is being invested primarily as life sciences
venture capital and growth capital. Its life science team of seven professionals
has over 90 years of cumulated experience in the life science industry and has a
proven track record in biotechnology and medical technology investments. The
team has approximately 270 Million Euro under management and recently raised
155 Million Euro in the BioDiscovery 3 fund. EdRIP is part of the group La
Compagnie Financière Edmond de Rothschild, Paris, France. For more information,
please visitwww.edrip.fr. 

About InnoBio fund
InnoBio is a French venture capital fund of EUR 139 Million, managed by CDC
Entreprises and for 37 per cent subscribed by the FSI and leading international
pharmaceutical companies established in France, such as sanofi-aventis, GSK,
Roche, Novartis, Pfizer, Lilly, Ipsen, Takeda and Boehringer Ingelheim. The main
objective of the fund is to make direct equity and quasi-equity investments in
companies that provide innovative technology products and services in the
healthcare market. InnoBio's investor team, specialized in this sector and
headed by Laurent Arthaud, made its first investment in January 2010. 

About CDC Entreprises and the FSI
CDC Entreprises is a management company authorized by France's financial market
regulator, the AMF, and a wholly-owned subsidiary of the Caisse des Dépôts. It
makes direct and indirect investments in companies, on a national or regional
level, ranging from technology seed funding to small company transmissions. 

CDC  Entreprises manages the  investments of the  FSI, of the  Caisse des Dépôts
(now  its second largest  subscriber) and other  public and private institutions
investing  in  small  and  medium-size  French  Businesses.  Its  mission  is to
encourage  the  emergence  of  companies  enjoying  solid  and lasting growth by
strengthening  their  equity  capital.  Via  180 associated  French  funds,  CDC
Entreprises holds more than 2,500 companies in its portfolio. 

The FSI (Fonds Stratégique d'Investissement) is a limited responsibility company
owned  51 per cent by the Caisse des Dépôts and 49 per cent by the French state.
It  makes equity investments taking minority  positions in French companies with
projects that create value and enhance competitiveness of the economy.
InnoBIO is managed by CDC Entreprises
www.fonds-fsi.fr - www.cdcentreprises.fr - www.france-investissement.fr 

About Crédit Agricole Private Equity 

Crédit Agricole Private Equity is an AMF-accredited asset-management subsidiary
of Crédit Agricole, specialising in direct private-equity investment in
non-listed companies. As multi-specialist player, Crédit Agricole Private
Equity's team of 95 professionals manages EUR3 billion with specific expertise in
LBO & Expansion, Venture Capital, Mezzanine, Co-Investment, Renewable Energy and
PPP Infrastructure. The 12-strong venture capital team manages EUR470 million
through FCPIs invested in young companies with high growth potential in 2
sectors: information technology and life sciences. Crédit Agricole Private
Equity has signed up to the United Nations' Principles for Responsible
Investment (PRI). As committed shareholder, Crédit Agricole Private Equity
provides the best possible support for businesses and delivers sustainable
performance to its investors.
www.ca-privateequity.com 

Press contacts 

Poxel SA                                        MC Services AG Munich 

Mr. Thomas Kuhn, CEO                            Mr. Raimund Gabriel
Phone: +33 4 37 37 20 10                        Phone: +49 89 2102 280
Email:thomas.kuhn@poxelpharma.com               Email:raimund.gabriel@mc-services.eu 

Mrs. Pascale Malgouyres
Business Development Director
Phone: +33 4 37 37 20 10
Email:pascale.malgouyres@poxelpharma.com 

Edmond de Rothschild Investment Partners        CDC Entreprises & InnoBio 

Mr. Raphaël Wisniewski                          Mrs. Nathalie Police
Phone: +33 1 40 17 27 69                        Phone: +33 1 58 50 73 02
Email:raphael.wisniewski@lcfr.fr                Email:nathalie.police@cdcentreprises.fr 

(MORE TO FOLLOW) Dow Jones Newswires

July 08, 2010 00:00 ET (04:00 GMT)

PRESS RELEASE: Poxel Raises EUR16 million in a -2-

Crédit Agricole Private Equity 

Mrs. Martine Sessin Caracci
Phone: +33 1 43 23 01 88
Email:martine.sessincaracci@ca-privateequity.fr 

[HUG#1430279] 

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Poxel S.A.
200 avenue Jean Jaurès Lyon France 

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Source: Poxel S.A. via Thomson Reuters ONE 

(END) Dow Jones Newswires

July 08, 2010 00:00 ET (04:00 GMT)