NeurogesX Closes $25 Million Private Placement

NeurogesX, Inc., a biopharmaceutical company focused on developing novel pain management therapies, today announced that it completed a $25.0 million private placement of its common stock to support the development of its late stage portfolio of novel pain management therapies.

On December 26, 2007, the Company announced that on Sunday, December 23, 2007, it entered into a securities purchase agreement in connection with a private placement to a group of institutional accredited investors. In the closings, which occurred on December 26 and January 3, the Company received approximately $25 million in gross proceeds from the sale of 4,020,910 shares of its common stock at a purchase price of $6.18 per share, the last closing price prior to signing of NGSX common stock on the NASDAQ Global Market, and the issuance of five-year warrants to purchase 1,206,273 additional shares of NGSX common stock at an exercise price of $8.034 per share. The warrants were purchased at a price per underlying share of $0.125.

The financing was led by SV Life Sciences, a life sciences-focused venture capital adviser and manager. SV Life Sciences advised or managed funds invest in companies requiring funding within the human life sciences sector including biotechnology and pharmaceuticals, medical devices and instruments, healthcare IT and services. SV Life Sciences advises or manages four venture capital funds and a publicly traded investment trust with total capital of approximately $1.6 billion that invest in life sciences companies at all stages of development. Bruce Peacock, a venture partner at SV Life Sciences, has served as an independent director of NeurogesX, Inc. since August, 2007.

Other participating investors include Deerfield Management and Wasatch Advisors, Inc., and its private equity affiliate, Cross Creek Capital.

Pacific Growth Equities, LLC served as the exclusive placement agent for the transaction.

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements. NeurogesX has agreed to file a registration statement with the Commission covering the resale of the shares of common stock, including shares of common stock issuable upon exercise of the warrants, sold in the private placement.

NeurogesX (Nasdaq: NGSX) is a biopharmaceutical company focused on developing novel pain management therapies. Its initial focus is on chronic peripheral neuropathic pain, including postherpetic neuralgia (PHN), painful HIV-distal sensory polyneuropathy (HIV-DSP) and painful diabetic neuropathy. NeurogesX' late stage product portfolio is led by its product candidate NGX- 4010, a dermal patch designed to manage pain associated with peripheral neuropathic pain conditions, that the company believes offers significant advantages over other pain therapies. Three Phase 3 clinical trials with NGX- 4010 have been completed and have met their primary endpoints, two in PHN and one in painful HIV-DSP.

Source: NeurogesX