Intarcia Therapeutics Intarcia Therapeutics, Inc. Intarcia Therapeutics Secures Landmark $210 Million Financing to Fund Its Global Phase 3 Program for ITCA 650 in Type 2 Diabetes 10 03 12 ITCA 650 EASD Ph3 Dose Select FINAL.html Thursday, November 15, 2012 Financing is estimated to be largest private biotech financing in at least 25 years Intarcia retains full strategic and financial control for global development of its lead diabetes program; intends to initiate global Phase 3 program with Quintiles in 1Q 2013 Pivotal head-to-head superiority trials planned vs. current standard of care medicines; if approved, ITCA 650 would be the first once-yearly, injection-free GLP-1 therapy HAYWARD, CALIFORNIA – November 15, 2012 – Intarcia Therapeutics, Inc. today announced the simultaneous completion of two financings with total proceeds of $210 million, the largest sum to be raised by a private biotechnology company in at least 25 years. The financings consisted of $160 million in proceeds from a preferred stock private placement and $50 million in proceeds from a private debt placement. Investors in these financings included existing investors New Enterprise Associates, Inc., New Leaf Venture Partners and Venrock, as well as new investors, The Baupost Group, LLC, Farallon Capital Management, LLC and three additional top-tier institutional investors based in Boston and New York. As a result of these transactions, Intarcia has retained full strategic and financial control of its lead product candidate ITCA 650 (continuous subcutaneous delivery of exenatide), which, if approved, would be the first and only once-yearly, injection-free GLP-1 therapy for the treatment of type 2 diabetes. Intarcia intends to initiate the global Phase 3 program for ITCA 650 in the first quarter of 2013 with its strategic partner Quintiles, Inc., the world’s leading biopharmaceutical service provider, which has helped develop or commercialize 18 of the 20 best-selling diabetes products. “With this landmark financing in place, we have fully preserved the vision for our company and our aim to bring potentially revolutionary clinical, economic and humanistic benefits to millions of diabetes patients around the world,” said Kurt Graves, Chairman, President and Chief Executive Officer of Intarcia. “After considering multiple options to maximize shareholder value and scaling up for our ITCA 650 Phase 3 program, we chose to align with this elite group of investors who not only shares our vision for ITCA 650 in the diabetes marketplace, but has also expressed its confidence in our ability to shepherd ITCA 650 successfully through clinical trial development and to strike the collaborations needed to make ITCA 650 a global market success.” Robert R. Henry, M.D., Professor of Medicine at the University of California, San Diego, Chief, Section of Diabetes, Endocrinology and Metabolism at the VA San Diego Healthcare System, and immediate Past President of the American Diabetes Association, commented: “I am excited about this progress for ITCA 650, as it facilitates the launch of a global Phase 3 program and advances this innovative therapy towards the many patients I believe may benefit from improved efficacy, tolerability, and the ensured compliance and long-term control that could come from a once-yearly therapy. The trials could demonstrate a real treatment breakthrough for patients and, given the global scale of unmet needs in type 2 diabetes, I believe the entire community should be enthusiastic about research like this and potential products like ITCA 650.” The completed financing will also facilitate the previously announced move of Intarcia’s corporate headquarters to the Boston, Mass. area, while keeping its early development capabilities and state-of-the-art manufacturing site at its current location in Hayward, California. Morgan Stanley acted as sole structuring advisor to Intarcia for the transaction. In addition, Morgan Stanley acted as sole placement agent for the debt and lead placement agent for the equity. Leerink Swann LLC acted as co-placement agent on the equity.