< 2004 News Listings Gloucester Pharmaceuticals Completes $29 Million Financing -financing will support clinical development of novel HDAC inhibitor- CAMBRIDGE, MA October 14, 2004 Gloucester Pharmaceuticals, Inc., a privately held cancer therapeutics development company, today announced that it has raised $29 million in a Series B financing round. The proceeds from the financing will be used primarily to advance the clinical development of Gloucester's lead product candidate, FK228 (depsipeptide), a novel histone deacetylase inhibitor (HDAC) currently in multiple clinical trials for the treatment of hematologic and solid cancers. The financing was led by Prospect Venture Partners and co-led by ProQuest Investments and Rho Ventures. Also participating in the financing were CIBC Capital Partners and founding investor, Apple Tree Partners. In connection with the financing, David Schnell, M.D., Managing Director of Prospect Venture Partners and Jay Moorin, Partner, at ProQuest Investments will join the board of directors of Gloucester. "We are delighted to support Gloucester's efforts to develop novel oncology products and have confidence in the company's ability to successfully advance their lead product, FK228, in cutaneous T-cell lymphoma," stated David Schnell. "HDAC inhibitors are an exciting new class of anti-cancer agents and we believe that FK228 has the potential to be a major player in this field." "We are extremely pleased that this syndicate of top-tier venture capital firms has chosen to participate in our Series B financing round," commented Jay Mohr, President and CEO of Gloucester. "We believe that this financing will allow us to advance the clinical development of FK228 toward regulatory approval in the United States." About FK228 FK228 (depsipeptide) is one of a new class of anti-cancer agents, known as histone deacetylase (HDAC) inhibitors, and is the only bicyclic peptide in this group. FK228 was granted Fast Track designation by the Food and Drug Administration as monotherapy for the treatment of cutaneous T-cell lymphoma (CTCL) in patients who have relapsed following, or become refractory to, one other systemic therapy. The product is in Phase 2 studies for CTCL, as well as renal cell carcinoma and hormone refractory prostate cancer. In numerous preclinical studies performed by Fujisawa, the NCI and others, the inhibition of histone deacetylation caused cell cycle arrest, differentiation and apoptotic cell death in cancer cells of various types. Phase 2 data reported at the 2004 Annual Meeting of the American Society of Clinical Oncology (ASCO) showed an overall response rate of fifty percent (50%) in patients with cutaneous T-cell lymphoma. Gloucester acquired the rights to FK228 from Fujisawa Pharmaceutical Co, Ltd. in April 2004 under an exclusive, worldwide license agreement. About Gloucester Pharmaceuticals, Inc. Gloucester Pharmaceuticals, Inc. is a privately held, venture-backed company that develops and commercializes innovative products for the treatment of cancer. The company employs an in-licensing strategy to build a diversified product portfolio to address the significant unmet medical need in the management of cancer. Gloucester's lead product is FK228, a novel HDAC inhibitor in Phase 2 studies, which the company acquired from Fujisawa Pharmaceutical Co, Ltd. in April 2004. Gloucester is headquartered in Cambridge, Massachusetts. For more information visit our newly enhanced website at www.gloucesterpharma.com. This press release contains forward-looking statements concerning Gloucester that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words, "believes," "anticipates," "plans," "expects," "estimates," "intends," "should," "could," "will," "may," and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause Gloucester's actual results to differ materially from those indicated by such forward-looking statements, including risks as to whether results obtained in pre-clinical and early clinical studies such as the results referred to in this release will be indicative of results obtained in future clinical trials; whether FK228 will advance through the clinical trial process and receive approval from the United States Food and Drug Administration or equivalent foreign regulatory agencies and for which indications, if any; and whether the patent and patent applications owned or licensed by Gloucester will protect the Company's technology and prevent others from infringing it. Gloucester disclaims any intention or obligation to update any forward-looking statements. Contacts Gloucester Pharmaceuticals, Inc. Media Kathryn Morris KMorrisPR Email: kathryn@kmorrispr.com Tel: (845) 635-9828 Investors Beverly Holley Email: info@gloucesterpharma.com Tel: (781) 235-9803
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