Alexza Completes $10 Million Equity Financing with Bio*One Capital to Initiate Commercial Manufactur

admin Portfolio News

SINGAPORE and MOUNTAIN VIEW, Calif., March 26 /PRNewswire-FirstCall/ —
Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) announced today that Bio*One
Capital Pte. Ltd., one of the largest dedicated biomedical investment
management companies in Asia, has committed to purchase $10 million of
common stock in Alexza. The investment by Bio*One is being made in
conjunction with Alexza’s formation of Alexza Singapore Pte. Ltd., a wholly
owned subsidiary. Alexza intends to initiate manufacturing operations for
key components of Alexza’s single-dose Staccato(R) device in Singapore.
Alexza’s single-dose Staccato devices are used in a majority of its current
product candidates, including its lead program, AZ-004 (Staccato loxapine),
which is in Phase 3 clinical testing for the treatment of acute agitation
in schizophrenic or bipolar disorder patients.

“A key element of Alexza’s commercial manufacturing strategy is the
development of production for the Staccato device-related plastic and
electronics components of our commercial product single-dose device,” said
Thomas B. King, President and CEO of Alexza. “Singapore provides an
excellent location and environment for us to establish this important
aspect of our commercial manufacturing plan. I believe the rich talent pool
and in-depth expertise available in Singapore will be a key element for
successful manufacturing operations.”

“Alexza’s technology and Staccato device offer patients a new paradigm
to rapid systemic drug delivery through deep lung inhalation. We believe
that combining Alexza’s unique technology and Singapore’s strengths in
medical technology will fast-track the company’s commercialization
strategy,” said Ms. Swee-Yeok Chu, CEO of Bio*One Capital. “Bio*One is
excited about Alexza’s commitment to undertake precision manufacturing and
procurement activities in Singapore. We are pleased to help facilitate
Alexza’s expansion into Asia Pacific, through our financial support and
extensive networks within Singapore and Asia.”

About Alexza Singapore Pte. Ltd.

Alexza has formed Alexza Singapore Pte. Ltd. (ASPL) as a wholly owned
subsidiary of Alexza. ASPL will initially oversee the establishment of a
manufacturing company in Singapore to provide Lower Housing Assemblies
(LHAs) for Alexza’s commercial Staccato drug delivery device. The
manufacture of LHAs consists of three key processes: plastic injection
molding of the upper and lower housing, printed circuit board assembly
fabrication and assembly of the LHAs. Over time, ASPL may evaluate possible
broader manufacturing strategies, which could include additional Alexza
technologies and products, as well as expanded GMP manufacturing.

About the Bio*One Capital $10 Million Equity Investment

Bio*One Capital has committed to purchase 1,250,000 shares of Alexza
common stock at a price of $8.00 per share. Subject to certain conditions,
Bio*One may receive 135,041 additional shares, which would adjust the
effective purchase price to $7.22 per share. In addition, Alexza has
committed to initiate and maintain manufacturing operations in Singapore
and will issue a warrant to Bio*One to purchase up to $3 million of
additional shares of Alexza common stock at a purchase price per share of
$8.00, subject to the same price adjustment as the common stock sale. The
warrant will become exercisable if and only if Alexza terminates operations
in Singapore or does not achieve certain performance milestones.

Conference Call Information

The Company will host an investor conference call to discuss today’s
announcement on Thursday, March 27, 2008 at 7:00 p.m. Singapore Time and
7:00 a.m. Eastern Time. A replay of the call will be available for two
weeks following the event. The conference call, replay and webcast are open
to all interested parties.

Domestic callers: 1-888-679-8035

International callers: 1-617-213-4848

Passcode: 72595133

Webcast information:

The replay of the conference call may be accessed via the Internet, at, or via phone at 1-888-286-8010 for domestic callers
or 1-617-801-6888 for international callers. The reference number to enter
the replay of the call is 88415646.

About Bio*One Capital Pte. Ltd.

Bio*One Capital is a leading, dedicated biomedical sciences investment
management company in Asia with a worldwide presence. Investments are
focused on promising and innovative global biomedical companies where
Bio*One Capital can play a value adding role in bridging and supporting
companies’ growth strategies in Asia through their operations in Singapore.
A part of the Singapore Economic Development Board, Bio*One Capital
oversees a portfolio of over 50 companies in the United States, Europe,
Singapore and Asia. For more information, please visit

About Alexza Pharmaceuticals

Alexza is an emerging specialty pharmaceutical company focused on the
development and commercialization of novel, proprietary products for the
treatment of acute and intermittent conditions. The Company’s technology,
the Staccato system, vaporizes unformulated drug to form a condensation
aerosol that allows rapid systemic drug delivery through deep lung
inhalation. The drug is quickly absorbed through the lungs into the
bloodstream, providing speed of therapeutic onset that is comparable to
intravenous administration, but with greater ease, patient comfort and

Alexza has six product candidates in clinical development. Alexza’s
lead program, AZ-004 (Staccato loxapine) for the treatment of acute
agitation in schizophrenic or bipolar disorder patients, is in Phase 3
testing. AZ-001 (Staccato prochlorperazine) for the acute treatment of
migraine headaches has completed Phase 2 testing. AZ-104 (Staccato
loxapine) for the acute treatment of migraine headaches and AZ-002
(Staccato alprazolam) for the acute treatment of panic attacks associated
with panic disorder are in Phase 2 testing. Product candidates in Phase 1
testing include AZ-003 (Staccato fentanyl) for the treatment of
breakthrough pain, which is partnered with Endo Pharmaceuticals in North
America, and AZ-007 (Staccato zaleplon) for the treatment of insomnia. More
information, including this and past press releases from Alexza is
available online at

Safe Harbor Statement

The anticipated conference call will contain forward-looking statements
that involve significant risks and uncertainties. Any statement describing
the Company’s expectations or beliefs is a forward-looking statement, as
defined in the Private Securities Litigation Reform Act of 1995, and should
be considered an at-risk statement. Such statements are subject to certain
risks and uncertainties, particularly those inherent in the process of
developing and commercializing drugs. The Company’s forward-looking
statements also involve assumptions that, if they prove incorrect, would
cause its results to differ materially from those expressed or implied by
such forward-looking statements.

These and other risks concerning Alexza’s business are described in
additional detail in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2007, and the Company’s other Periodic and Current
Reports filed with the Securities and Exchange Commission, including the