The News

EOS (Ethical Oncology Science) Closes Series A Financing with new Investor AESCAP Venture joining Sofinnova Partners and Quantica SGR

30/07/2009

Clinical studies to be initiated for two novel drug candidates with best-in-class features in the next 6-8 months

July 30, 2009, Milan, Italy. EOS S.p.A. (Ethical Oncology Science) today announced that it has closed a €12.2 million (US$ 17 million) Series A preferred stock financing with the entry of a new investor, the AESCAP Venture I Fund. This follows the completion of the first tranche of € 8.2 million (US$ 10 Million) in
March 2009, which was subscribed by Sofinnova Partners and Quantica SGR. EOS has therefore completed its financing plan, which foresees the initiation of clinical studies for two innovative targeted cancer therapies, E�]3810 and the HDAC inhibitor E�]162, which have the potential to become differentiated best�]inclass treatments for prevalent cancers.

Silvano Spinelli, Founder, Chief Executive and Chairman of EOS, said. "We are on track to achieve our ambitious goal of initiating clinical studies for two very promising targeted therapeutics in the next six months. These novel molecules act on specific molecular defects which cause tumors and their successful development could offer substantial benefit to patients. We are confident we have identified a clear and clinically feasible route for gaining clinical proof�]of�]concept for E�]3810, which could represent a new breakthrough, due to its dual inhibition of the VEGF and FGF receptors. The preclinical development of E�]162 is well advanced, following the successful completion of our synthesis and screening campaign. Kreske Nickelsen of AESCAP Ventures will be appointed to the EOS Board. She joins Antoine Papiernik and
Graziano Seghezzi of Sofinnova Partners, Pierluigi Paracchi of Quantica SGR and Silvano Spinelli, who serves as Chairman of the Board.

“EOS is a good example of a successful team of serial entrepreneurs. Several investors and Industry partners have already discovered the value of the team and EOS’ translational medicine capabilities, which can rapidly channel targeted oncology programs from lead discovery to clinical proof�]of�]concept,” added Kreske Nickelsen. “This is highlighted, for example, by the EOS team successfully advancing E�]3810 from lead development to the pre�]IND stage in less than 12 months. We are excited and happy to be able to participate in further building the business”.

The additional funds could also allow EOS to achieve its goal of enlarging its portfolio with further innovative oncology projects.

"We are already looking beyond the initiation of clinical development for E�]3810 and E�]162 and are actively evaluating opportunities to enlarge our project portfolio," continued Silvano Spinelli. "This includes developing further innovative approaches to cancer therapy in cooperation with industry partners."

About EOS’ Advanced Oncology portfolio
A Dual VEGF/FGF Inhibitor – a potential best�]in�]class drug EOS’ lead product candidate, E�]3810, is in advanced preclinical development, with phase 1 clinical studies expected to start in Q4 2009. E�]3810 is a novel small molecule, which is a potent and selective inhibitor of both the Vascular Endothelial Growth Factor (VEGF) and the Fibroblast Growth Factor�]1 (FGF) receptors, a mechanism of action which should allow it to effectively prevent the development of new blood vessels which are essential for tumor growth (a process known as angiogenesis).

E-3810 has shown strong anti�]angiogenic properties as well as better anti�]tumor activity than currently marketed VEGF inhibitors in a number of preclinical models after oral administration. Its unique selectivity profile and the significant activity observed in vivo suggest that E�]3810 could represent a new breakthrough for the anti�]angiogenic treatment of various malignancies. E�]3810 has been in�]licensed from Advenchen (Los Angeles, CA) and EOS has world�]wide rights for oncology indications, outside China.

E-162– innovative HDAC Inhibitor with the potential for a superior profile to existing compounds EOS selected E�]162 as a development candidate during the first half of 2009 and expects to initiate phase 1 clinical trials in early 2010. E�]162 is an innovative HDAC Inhibitor which has demonstrated outstanding cellular potency and long�]lasting suppression of tumor growth in preclinical models. HDAC inhibitors are believed to block tumor development by preventing the inappropriate switching�]off of tumor suppressor genes and potentially other mechanisms. EOS’ identified E�]162 through a highly effective synthesis and screening campaign, which successfully optimized a naturally occurring chemical scaffold. EOS is collaborating on this project with Karus Therapeutics Limited (Southampton, UK).

About EOS S.p.A.
EOS S.p.A. (Ethical Oncology Science) is an emerging biopharmaceutical company headquartered in Milan, Italy, developing novel targeted medicines to treat cancer. EOS was founded by a team of bioentrepreneurs with decades of experience in translational medicine in oncology, high credibility with the financial community and significant track record in funding and growing biotech companies. EOS has a nimble internal structure, retaining only the strategic skills and activities in�]house, while relying on strategic collaborations and outsourcing for accessing the most suitable options on a timely, flexible and costeffective manner. EOS has assembled an initial, well integrated portfolio of molecularly targeted agents and is committed to applying translational medicine principles to the pre�]clinical and initial clinical development of its drug candidates. EOS aim is to provide best�]in�]class anticancer agents with robust clinical proof�]ofconcept for licensing to commercial partners.

About Aescap Venture
Aescap Venture is a venture capital company investing in private medical companies in Europe. Aescap invests in high�]potential companies with realistic product opportunities and the potential to generate cash flow from licensing deals. This involves investments in all phases of development with an emphasis on earlier stages. Aescap Venture’s added value is based on a multi�]disciplinary team of experienced investment partners. Each has a proven track record of success and the skills to coach entrepreneurs in accelerating the growth of their companies. For more information on Aescap’s team and portfolio, please visit www.aescap.com.

About Quantica SGR
Our mission is to head Venture Capital of Innovation in Italy. Principia Fund I is the first Italian Venture Fund promoted by experience managers and prestigious research and university institutions. Principia Fund II is the Venture Fund that makes Quantica SGR the leading Venture Capital firm in the country.
Quantica select and invest both in innovations on the technological frontier and fast�]growing companies. www.quanticasgr.it

About Sofinnova Partners
Sofinnova Partners is an independent venture capital firm based in Paris, France that specializes in investments in early stage companies and corporate spin�]offs in the technology and life sciences sectors.
Since 1972, the firm has financed over 450 companies, many of which have gone public or have been acquired, and currently manages over €1 billion in assets. Sofinnova’s experienced team and hands�]on approach in nurturing and supporting portfolio companies from initial financing to successful exit have created market leaders and multiplied revenues.

Contacts:
Paola Pizzi
Administrative Manager
EOS S.p.A.
paola.pizzi@eosmilano.com
phone: +39 02 87391608
fax: +39 02 87391617
web site: www.eosmilano.com