MPM Capital L.P. Leads $22 million Series B Equity Investment in Genteric, Inc.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 14, 2001

Genteric, Inc., a leader in the development of gene therapy delivery systems to correct human disease, closed a $22 million Series B equity financing led by MPM Capital L.P. Also participating in this round were Genteric's Series A investors including Sanderling, Alta Partners and MedVenture Associates. A second new investor, China Development Industrial Bank, rounded out the deal. The funds will be used to expand Genteric's programs and advance its proprietary technology to clinical trials.

Genteric is pioneering new methods of gene based drug delivery that employ the secretory organs of the patients' gastrointestinal system to produce and release therapeutic proteins in the bloodstream. Specifically, the company uses either viral or non-viral gene therapy constructs to convert genes to therapeutic proteins within ductal spaces of the salivary/parotid glands, liver, and pancreas and also has a gene pill for delivery of gene therapy in the gut. Such a platform can improve delivery for a number of gene therapies including Factor VIII and Factor IX clotting factors for hemophiliacs, insulin for Type I and Type II diabetics, erythropoietin for anemia, and growth hormone for dwarfism and patients suffering from Turner Syndrome. This improved gene therapy delivery may eliminate the need for multiple daily injections of protein therapeutics, increasing compliance and decreasing the costs of chronic medications for these patients.

Dr. Ansbert Gadicke, Chairman and General Partner of MPM Capital L.P. will join the Board of Directors of Genteric. "We believe Genteric's unique technology will provide a breakthrough in gene therapy, making this therapeutic modality via oral and secretory gland delivery widely commercialized. Further, we believe we are backing an exceptional scientific and management team with solid experience in the gene therapy area, " Dr. Gadicke said.

Genteric's President and Chief Executive Officer, Martin D. Cleary, stated, "The quality of these investors continues to reflect the strong pedigree that the Genteric technology attracts. We welcome MPM Capital to the Genteric family and Dr. Gadicke to our Board of Directors. We are also pleased that the Series A Investors have demonstrated their continued support of our programs by participating in this round."

MPM Capital L.P. is a global asset management firm focused solely on health care investing from early stage start-ups to large capitalization public companies. Headquartered in Cambridge, Massachusetts, MPM Capital has offices in South San Francisco, California and Munich, Germany. MPM's current portfolio consists of biopharmaceutical and medical devices companies and encompasses platform technology as well as product plays. The firm manages over $1 billion in assets under management through $800 million in venture capital funds and $250 million in MPM BioEquities, a fund raised this past March to invest in public health care companies. These combined funds make MPM Capital one of the largest asset management firms dedicated to the healthcare industry.