Naryx Pharma Completes Series B2 Private Equity Financing

Investors provide $8 million in capital to fund further clinical development of novel chronic sinusitis products.

Santa Barbara, CA, May 22, 2006 –Naryx Pharma, Inc. today announced the completion of a Series B2 financing in the amount of $8 million. Naryx is a biopharmaceutical company developing proprietary products for the treatment of chronic sinusitis, one of the most common chronic conditions in the U.S. today.  The investor syndicate was led by Vivo Ventures with participation from Sutter Hill Ventures.

Robin Campbell, Ph.D., Naryx President & CEO stated, “We are pleased to be able to add the substantial and proven resources and capabilities of Vivo Ventures and Sutter Hill to our investor group.  We are excited to leverage this financing to move forward in developing our lead products.”

Chen Yu and Ed Engleman, both of Vivo Ventures, will join the Naryx Board of Directors.   Dr. Yu said, “Naryx is well on its way in the clinical development of novel products in the under-recognized therapeutic category of chronic sinusitis. We look forward to working with the Naryx team to create major shareholder value.”   
About Naryx Pharma
Naryx is a privately-held company dedicated to developing innovative therapies for chronic sinusitis based on advances in the targeted delivery of medications.  Chronic sinusitis is a disease that afflicts over 30 million people in the United States alone.  The Company will focus on obtaining marketing approvals for its promising intellectual property portfolio of intranasal drug formulations.
About Vivo Ventures
Vivo Ventures (www.vivoventures.com) is a life sciences-focused venture capital firm formed in 1996 with $400 million under management. Vivo Ventures is based in Palo Alto, Calif., and is currently making investments from its fifth fund, Vivo Ventures Fund V, into promising biotechnology and life science companies.
About Sutter Hill Ventures

Founded in 1964, Sutter Hill Ventures is one of Silicon Valley's original venture capital firms.  Healthcare companies backed at founding by Sutter Hill include Amylin, Cor Therapeutics, Lifescan, Molecular Devices, Neurex, and Omnicell.

Contact:

Tim Immel, CFO
timmel@naryxpharma.com
805-566-2801
www.naryxpharma.com

At Vivo Ventures, we leverage our internal expertise in evaluating data to generate outsized returns for company founders and employees as well as for our investors. Vivo prides itself on its working relationships with its founders who have often continued to work with the firm in other startup ventures. The majority of Vivo's investments are in U.S. based companies with therapeutic products in clinical development. MORE