Ingelheim, Germany and Cambridge, UK – 23 July 2012 – Today,
Boehringer Ingelheim, one of the world’s leading pharmaceutical companies, and
Funxional Therapeutics, a clinical-stage, asset-centric, private company,
announced an agreement under which Boehringer Ingelheim will acquire the
global rights to Funxional Therapeutics’ FX125L compound and somatotaxin
programme. FX125L is a small molecule to treat a broad range of inflammatory
diseases and was recently studied in a Phase 2 clinical trial in patients.
Boehringer Ingelheim will be responsible for all further research, development
and commercialisation of FX125L. Financial details of the transaction were not
disclosed.

“Boehringer Ingelheim is delighted to add another promising compound to its
development pipeline of drugs for the treatment of respiratory disease, one of its
most important therapeutic areas”, said Prof. Klaus Dugi, Corporate Senior Vice
President Medicine, “by acquiring the Funxional Therapeutics programme, we
are looking forward to bringing a potential new therapy to patients, for instance
those suffering from Asthma and COPD.”

David Grainger, Founder and CSO of Funxional Therapeutics commented: “We
are very pleased that the future development of FX125L and the somatotaxin
programme will be now driven forward by Boehringer Ingelheim. They are a very
impressive organisation and their people have the necessary knowledge, skills
and experience to successfully develop FX125L.”

Funxional Therapeutics was founded by David Grainger with initial investment
from Index Ventures and Novo A/S in 2006. Ventech led the Series B financing.
Index Ventures’ partner and Chairman of the board, Michele Ollier said: “This
acquisition is further validation of Index’s business model and we congratulate
the team who have delivered first class science and developed a very exciting
molecule. They have done an extraordinary job of building this company.”