Chicago Growth Partners Portfolio Company TargaGen Sold to Sanofi-aventis

Sale of TargeGen to Sanofi-aventis will allow for further development of agent targeting the treatment of certain forms of cancer and blood disorders.

Chicago Growth Partners (CGP) today announced the signing of a definitive agreement to sell 100% of TargeGen, Inc. (TargeGen) to Sanofi-aventis for an amount up to $560 million. CGP initially invested $8 million in January 2004 and subsequently invested an additional $6 million in the company over the next four years as the products progressed through clinical trials. Under the terms of the deal Sanofi-aventis will make both an upfront payment of $75 million and a series of additional milestone payments of up to $485 million at different stages of development for TargeGen’s lead product TG 101348. CGP initially received $4.6 million from the upfront payment and could potentially receive approximately $51 million should of the milestones be achieved. In total, CGP would realize a return of approximately 4.0x invested capital if all milestones are achieved. TargeGen is a US biopharmaceutical company developing a treatment for certain forms of leukemia, lymphoma, and other hematological malignancies and blood disorders. TG 101348, is a potent inhibitor of Janus kinase 2 (JAK-2). It is an oral agent and is being developed for the treatment of patients with myeloproliferative diseases including myelofibrosis (MF). MF is a chronic and progressive disorder in which there is a proliferation of certain cells of the bone marrow resulting in bone marrow fibrosis. TG 101348 has completed a multicenter clinical Phase 1 / 2 trial in patients with MF. Additional clinical studies are planned to start in the second half of 2010.

CGP initially invested in the Company in January 2004 and Dr. Arda Minocherhomjee has served on the board since that time. The investment in TargeGen is an excellent example of how CGP partners with outstanding management teams to create long-term value. “We are particularly proud of the fact that TargeGen’s lead product, TG 101348, has the potential to have a significant positive impact on the lives of people suffering from several life threatening diseases,” stated CGP Managing Partner Dr. Arda Minocherhomjee. CGP is pleased to have had the opportunity to work with TargeGen’s outstanding management team led by Peter G. Ulrich. “They did an excellent job building the company over an extended period of time. All of us at CGP wish them the best with their new partner, Sanofi-aventis,” Dr. Arda added.

The CGP deal team included Dr. Arda Minocherhomjee, Sean Barrette and Betsy Scher.