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Funds Will Support Clinical Trials and Ongoing Operations Through Early 2011

NanoBio Corp., a biopharmaceutical company developing dermatological products, anti-infective treatments and intranasal vaccines, announced today that it has closed a $22 million Series B financing round after recently securing an additional $10 million investment from NanoBio's majority shareholder Perseus, L.L.C., based in New York, N.Y., and Venture Investors of Madison, Wis., and Ann Arbor, Mich. The $10 million is in addition to the $12 million Series B funding announced in February 2009. To date, NanoBio has received more than $90 million in equity and grant funding to support the development of the company's anti-infective products and nanoemulsion-based vaccines.

“This investment round secures our ability to independently fund the next two years of our operations,” commented James R. Baker, Jr., MD, NanoBio's CEO and founder. “Our investors see the tremendous value of our platform technology from both a medical and commercial perspective. There is a clear need for novel topical anti-infective therapies and new vaccine-adjuvant approaches that offer safety, ease of use and enhanced efficacy.”

The funding will support the advancement of numerous clinical and preclinical programs, including the development of products for herpes labialis, onychomycosis, acne and cystic fibrosis as well as intranasal vaccines for seasonal influenza and other diseases. The company will begin a Phase I clinical study in acne this summer and is planning to initiate a phase III study in herpes labialis. In addition, the company is currently conducting a Phase I clinical study in NB-1008, a seasonal influenza vaccine administered via a nasal dropper.

NB-1008 uses a novel nanoemulsion-based adjuvant to achieve a robust immune response using only a small fraction of the antigen required by currently available injectable vaccines. In numerous animal studies, NB-1008 has demonstrated robust mucosal, systemic and cellular immunity without inflammation or safety concerns.

“NanoBio is a compelling investment choice, offering a strong scientific basis supported by promising ongoing trial results,” commented George Arida, managing director for Venture Investors' healthcare practice. “At a time when investors have a multitude of good companies seeking financing, we are selectively backing those with strong management teams and novel technology that have the potential to create significant change in the healthcare landscape.”

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