Cardeas Pharma Completes $34 Million in Series B Financing

Seattle, May 22, 2013 - Cardeas Pharma Corporation, a biopharmaceutical company focused on the development of innovative therapies for the treatment of multi-drug resistant (MDR) bacterial infections, announced today the completion of a $34 million Series B round of financing.  The round was led by new investor H.I.G. BioVentures, LLC, and also included existing investors Novo A/S, Avalon Ventures, Devon Park Bioventures and WRF Capital (Washington Research Foundation), as well as additional new investor Delphi Ventures.  Aaron Davidson, Managing Director of H.I.G. BioVentures, will join the Cardeas Board of Directors.

Funds from this financing will be used to support Phase 2 development of Cardeas' lead compound, investigational amikacin/fosfomycin inhalation solution delivered via an eFlow® InLine Nebulizer system, as a potential treatment for healthcare associated pneumonia (HCAP) in patients on mechanical ventilation.  Cardeas completed its Phase 1b study in patients in March of this year.  Positive safety and tolerability findings at all doses tested in the study were presented at the American Thoracic Society International Conference in Philadelphia this week.

"We are pleased to have the support of both new and existing investors in this round of financing.  It will enable us to complete a Phase 2 safety and efficacy study of our aerosol combination antibiotics as adjunctive therapy to intravenous antibiotics in patients at high risk for multidrug resistant infections who are on a mechanical ventilator," stated Bruce Montgomery, CEO of Cardeas.  "There is a significant need for novel antibiotic therapies for the treatment of resistant pathogens in respiratory disease in the critical care setting," said Aaron Davidson.  "As a new member of the Board of Directors, I look forward to working with the Cardeas management team to advance Phase 2 efforts for their first development program."

HCAP, including ventilator associated pneumonia (VAP), is a common, life threatening complication that often prolongs hospitalization.  Treatment of HCAP/VAP currently requires intravenous antibiotic therapy targeting Gram‑negative and/or Gram-positive bacteria.   Cardeas' investigational product delivers a novel combination of the antibiotics amikacin and fosfomycin as an aerosol formula and is being studied as an adjunctive therapy to treat multi-drug resistant Gram-negative and Gram-positive (including MRSA) pneumonia.  In development of its investigational antibiotic therapy, Cardeas is in partnership with PARI Pharma GmbH, which is studying its proprietary investigational eFlowInLine Nebulizer for the administration of the inhalation antibiotic combination in patients on mechanical ventilation.

About H.I.G. BioVentures

H.I.G. BioVentures is the dedicated life-science investment affiliate of H.I.G Capital, a leading global private equity investment firm with more than $12 billion of equity capital under management.  H.I.G. BioVentures invests in a broad range of life sciences opportunities across sectors and stages, principally in companies developing therapeutic drugs, medical devices, and diagnostics for significant unmet medical needs.  With approximately $400 million in committed capital, H.I.G. BioVentures invests approximately $3 million to $20 million per company over the life of an investment.

 About Cardeas Pharma

Cardeas is a privately held biopharmaceutical company dedicated to the development and commercialization of inhaled antibiotics to treat serious, hospital-acquired respiratory infections with highly antibiotic-resistant organisms.  By combining novel formulations of proven antibiotics with cutting edge drug delivery technology, Cardeas seeks to address significant unmet medical needs in the critical-care setting.  More information can be found at www.cardeaspharma.com.

About eFlow® Technology and PARI Pharma

Cardeas's combination of amikacin/fosfomycin is delivered by an investigational eFlow InLine Nebulizer System developed by PARI Pharma and optimized for amikacin/fosfomycin.  The device uses eFlow Technology to enable efficient aerosol delivery of medication to intubated patients on a mechanical ventilator.  eFlow Technology uses a vibrating, perforated membrane that includes thousands of laser drilled holes. eFlow Technology produces aerosols with a small, precisely defined droplet size, reducing aerosol losses and improving delivery of nebulized drugs via the circuit of a ventilator.  Designed as a single patient, multi-treatment delivery system eFlow InLine Technology may be an important tool for caregivers treating patients on invasive and non-invasive ventilation in the hospital and home setting. PARI Pharma focuses on the development of aerosol delivery devices and inhalation drug development to advance aerosol therapies.  More information may be found online at www.paripharma.com.