Altea Therapeutics Raises over $30 Million in Series C Financing.

ATLANTA -- Altea Therapeutics

--Funding Supports Product Clinical Development

--Two New Appointees made to the Board of Directors

Altea Therapeutics, an emerging pharmaceutical company developing transdermal patches for the delivery of proteins and water-soluble drugs, today announced the completion of an over $30 million Series C round of private equity financing led by Aperture Venture Partners. The investor syndicate also included the Series B investors: Domain, Venrock and vSpring Capital, together with KBC, Quilvest, CX Ventures, and Rockport Ventures.

"In welcoming our new investors, it is a pleasure to recognize the continued commitment of our Series B investors," stated Eric Tomlinson, Ph.D., President and Chief Executive Officer of Altea Therapeutics, who added, "Altea Therapeutics will use the proceeds to continue the clinical development of our lead products for pain management and diabetes control. These funds will also support the further development of processes for the fabrication of our commercial products."

In connection with the investment, Paul E. Tierney, Jr., Managing Partner of Aperture Venture Partners, and Ruth Devenyns, Senior Investment Manager at KBC Investco, have joined the Company's Board of Directors. "Altea Therapeutics has made impressive progress in developing a convenient method for the sustained delivery of proteins and water-soluble drugs across the skin; the Company's achievements to date set the stage for future success," commented Mr. Tierney.

Ms. Devenyns remarked, "Altea Therapeutics is creating a diversified pipeline of products that exploit its patented breakthrough transdermal technology. The Company's strategy of entering into late-stage development and commercialization arrangements with major pharmaceutical companies is appealing, and we are pleased to be part of the Company's future."

About Altea Therapeutics

Altea Therapeutics is an emerging private pharmaceutical company focused on developing and commercializing a broad portfolio of pharmaceutical products based on a new class of advanced transdermal patches that deliver sustained therapeutic levels of proteins and water-soluble drugs in a convenient, painless and cost-effective manner.

Altea Therapeutics has demonstrated in several clinical studies that its patented PassPort(TM) transdermal system achieves what existing patches are unable to do, namely the continuous delivery through the skin of proteins and water-soluble drugs - compounds typically administered by painful needle injections.

The Company is conducting Phase 2 clinical trials in the U.S. with a daily hydromorphone patch for the rapid management of moderate to severe pain, and Phase 1 clinical trials in the U.S. with insulin patches that provide continuous delivery of basal levels of insulin for people with diabetes.

NOTE: PassPort(TM) is a trademark of Altea Therapeutics Corporation. Any other trademarks referred to belong to their respective owners.

The statements in this press release regarding the products of Altea Therapeutics in development, product development plans, and projected financial results, are forward-looking statements involving risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the ability of Altea Therapeutics to both complete the design, development, and manufacturing process development of its products, manufacture and commercialize its products, obtain product and manufacturing approvals from regulatory agencies, manage its growth and expenses, finance its activities and operations, as well as marketplace acceptance of its products.