ChemoCentryx Receives $17.7 Million in Series C Financing

ChemoCentryx, Inc. announced that it has recently completed a Series C financing in June 2006 with participating investors including Jennison Associates, HBM BioVentures, Orbimed Advisors, Techne Corporation, Alta Partners, and GIMV. Gross proceeds from this round of financing totaled $17.7 million.

More great news for ChemoCentryx is that it has signed a worldwide strategic alliance with GlaxoSmithKline (GSK). ChemoCentryx will receive an upfront payment of $63.5 Million comprised of cash and an equity investment in the form of a Series D financing. In addition, ChemoCentryx will receive research funding and will be eligible to earn milestone payments up to, potentially, $1.5 billion, across 6 product options on the four targets, assuming successful development and commercialisation. ChemoCentryx will also receive double-digit royalties on all collaboration product sales and will be able to increase royalties in certain instances by co-funding development through Phase III clinical trials. Furthermore, under certain circumstances, upon an initial public offering by ChemoCentryx, GSK will invest in ChemoCentryx’s common stock.

Maxine Gowen, Ph.D., Senior Vice President and head of GSK’s CEEDD stated, “The ChemoCentryx alliance is a landmark relationship for the CEEDD. This collaboration clearly demonstrates GSK’s commitment to gain access to leading-edge, best anywhere science and we are excited by the opportunity to work with ChemoCentryx, the leading chemokine company, and their world class team. Accessing their expertise and four advanced chemokine programmes, including, Traficet-EN^{in the clinic for IBD, will allow us to bring novel medicines to patients with high unmet need”.}

“We are pleased to have completed our Series C financing with a roster of preeminent investors. Between this and other financing vehicles, combined with the upfront payments from the GSK alliance, ChemoCentryx has secured nearly $90.0 million in new money in 2006 so far,” said Thomas J. Schall, Ph.D., President and CEO of ChemoCentryx. “Historically, we have successfully pursued a mix of venture capital financing and non-dilutive funding. The combination of our Series C financing and the upfront payments received as part of our strategic alliance with GSK reinforces this long-term strategy. We are now extremely well-positioned to avail ourselves of market opportunities of our choosing, as we continue to build value in ChemoCentryx and our pipeline of chemokine-based medicines.”