Cerexa, recently spun off from Peninsula Pharmaceuticals, has formally launched operations after raising $50 million in venture capital. New Leaf Venture Partners co-led the financing round with Frazier Healthcare Ventures, investing $8 million in the Alameda, California-based biotech. Cerexa is planning to start Phase II clinical trials with PPI-0903, a broad-spectrum cephalosporin antibiotic with methicillin-resistant Staphylococcus aureus (MRSA) coverage, in the second half of 2005.

"This is a promising time to be investing in the antibiotics market, which is experiencing a renewed interest as evidenced by some of the recent transactions we've seen in the space," commented Ron Hunt, a managing director at NLV Partners. "Not only does Cerexa have a potential blockbuster asset with PPI-0903, but this team has the experience and skills in place to build a successful company with a broad portfolio of novel anti-infective products."

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