Funds to Finance On-going Clinical Development of Saratin and BVI-007

    SAN DIEGO, Feb. 7 /PRNewswire/ -- BioVascular Inc., a company focused
on developing therapies targeting platelet-mediated diseases, today
announced that it secured $10.87 Million in Series C financing. The Series
C funds will support the clinical development of BioVascular's therapeutics
targeting platelet-mediated diseases, saratin and BVI-007.

    BB Biotech Ventures of Zurich, Switzerland led the financing; previous
investors Merck KGaA and Domain Associates also joined the round. In
connection with the financing, Martin Munchbach, Ph.D., partner of BB
Biotech will join BioVascular's board of directors.

    Dr. Munchbach joined BB Biotech Ventures in 2004. Prior to joining BB
Biotech, he served as a partner at BioMedinvest and has held senior level
positions at HBM Partners and New Medical Technologies (NMT). Before NMT,
Dr. Munchbach gained experience in strategic marketing at
Sanofi-Synthelabo. Dr. Munchbach holds a Ph.D. in protein chemistry, an MSc
in biochemistry and a master in economics from the Swiss Federal Institute
of Technology (ETH), Zurich.

    "With the support of Domain Associates and Merck KGaA, BioVascular has
built a solid strategy for advancing our two clinical candidates," noted
John Parrish, CEO of BioVascular. "As we execute on our plan to become a
world-class cardiovascular specialty therapeutics company, we welcome the
financial support and advice of Dr. Munchbach and BB Biotech."

    Funds raised through this financing will allow BioVascular to complete
ongoing clinical trials of its two compounds, saratin and BVI-007. The
company has raised a total of $18.87 million to date. Saratin is under
investigation to reduce the failure of vascular grafts due to intimal
hyperplasia and is currently the subject of two Phase I/II clinical trials.
BVI-007, a compound that acts to reduce platelet production without
affecting platelet function, is being studied in a Phase Ib dose selection
clinical trial. All trials are expected to be completed in 2009.

    "BioVascular is well-positioned to capture the potential of its two
unique compounds, each of which address significant medical needs," said
Dr. Munchbach. "We believe that the company's strong management team and
commercial development strategy make it a wise investment, and we look
forward to assisting the team as the company grows."

    About Saratin

    BioVascular's most advanced compound, saratin is a 12 kDa polypeptide
originally identified as a component of leech saliva (Hirudo medicinalis)
and currently produced as a recombinant protein in yeast. The polypeptide
is designed to be applied to the inner surface of the arterial wall during
surgery. There, it coats exposed collagen fibrils and inhibits the binding
of platelets to those fibrils. By blocking platelet adhesion, saratin
blocks the first step in a sequence of events that involve platelet
aggregation and activation and may thereby prevent subsequent thrombus
formation and intimal hyperplasia that occurs in a range of vascular
surgical and endovascular procedures. Saratin is currently being studied in
two Phase I/II clinical trials.

    About BVI-007

    BVI-007 is BioVascular's second product candidate and acts to reduce
platelet production without affecting platelet function or affecting the
levels of other blood cellular components. Human clinical studies have
shown that high platelet counts significantly correlate to the occurrence
of secondary cardiovascular events such as myocardial infarction,
thrombotic stroke and death. BioVascular has secured exclusive worldwide
rights to BVI-007. BVI-007 is currently under investigation in a Phase Ib
dose selection study.

    About BioVascular, Inc.

    BioVascular is a privately-held, cardiovascular and vascular disease
focused company, dedicated to developing novel therapeutics for
platelet-mediated disorders. Started in 2005, the company is leveraging its
exclusive rights to two clinical stage cardiovascular compounds with
differentiated mechanisms of action to become a leading specialty
therapeutics company. BioVascular's most advanced clinical compound,
saratin, is currently being studied in two Phase I/II clinical trials for
vascular graft failures due to intimal hyperplasia. The company recently
acquired the full worldwide rights to BVI-007, which reduces platelet
numbers without impairing platelet function.

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