Zosano Pharma, Inc. Secures $30 Million in New Round of Financing

Funds to Support Late-stage Development of ZP-PTH for Osteoporosis
FREMONT, Calif.--(Business Wire)--
Zosano Pharma, Inc., a privately held pharmaceutical company developing products
based on its novel transdermal delivery technology, today announced that the
company has closed a new round of financing in the amount of $30 million. Nomura
Phase4 Ventures led the round and all of the company`s existing venture
investors, including New Enterprise Associates, HBM BioVentures and ProQuest
Investments, participated.

Proceeds will primarily support the ongoing scale-up for Phase 3 clinical
development and manufacturing readiness for Zosano`s lead program, ZP-PTH rapid
delivery patch for the treatment of osteoporosis.

"We are pleased to have completed this significant financing with participation
from our existing investors, particularly in this challenging economic
environment," said Zosano Chair and CEO Gail Schulze. "We continue to lay the
groundwork for our pivotal phase 3 clinical study and in parallel are advancing
a number of strategic partnering discussions. We believe that this financing is
further evidence that ZP-PTH has tremendous potential to deliver an important
and differentiated therapeutic alternative to the large, yet underserved
osteoporosis market."

"We are impressed with the progress Zosano is making in advancing ZP-PTH for
osteoporosis," stated Denise Pollard-Knight, Managing Director of Nomura Phase4
Ventures. "This new investment in Zosano reflects our continued confidence in
the clinical promise of ZP-PTH, in the team`s ability to deliver the product to
patients, and in this novel technology`s value across many therapeutic
applications, including vaccines."

Zosano recently reported positive results from its phase 2 study of the ZP-PTH
rapid delivery patch being developed as an alternative to daily injections for
the treatment of osteoporosis. ZP-PTH delivers PTH 1-34, teriparatide (PTH), a
compound proven to stimulate formation of new bone and reduce the risk of
fractures.

The phase 2 study evaluated the safety and efficacy of three doses of ZP-PTH on
lumbar spine bone mineral density (BMD) after 24 weeks relative to placebo and
Forteo® subcutaneous injection in postmenopausal women with osteoporosis. The
results demonstrated that daily administration of all three doses of ZP-PTH for
24 weeks resulted in a significant gain in BMD of the lumbar spine over placebo
(p<0.001). The ZP-PTH 40 mcg patch, which effectively delivers 16 mcg of PTH,
was similar to a Forteo 20 mcg injection, in mean percent change from baseline
in lumbar spine BMD (4.97% versus 3.55%). Importantly, treatment with ZP-PTH 40
mcg also showed a significant increase in total hip mean percent change from
baseline in BMD (+1.33%) compared to placebo (-0.634%) and Forteo (0.094%), both
at p<0.05. All ZP-PTH doses were well tolerated with no systemic adverse events
different from Forteo. There were no clinically significant sustained
occurrences of hypercalcemia in any treatment group and topical reactions were
minimal, as expected.

About Zosano Pharma, Inc.

Zosano Pharma, Inc. is a privately held pharmaceutical company focusing on the
development of its lead clinical program, the ZP-PTH rapid delivery patch for
the treatment of osteoporosis. ZP-PTH is being developed as an alternative to
daily injections and is based on Zosano`s novel transdermal delivery technology
which can deliver peptides, proteins, small molecules and vaccines by permeating
the skin`s outer layer and ensuring significant therapeutic effect. This proven
proprietary technology offers many key benefits, including efficacy and safety
comparable to approved injectables, needle-free and pain-free delivery, a
self-administered patch, rapid onset of action and room temperature storage.
Zosano`s transdermal delivery technology has been clinically tested in more than
400 patients with four different peptides and a vaccine. Zosano aims to develop
products both independently and through strategic licensing and co-development
arrangements. Founded in 2006 as an ALZA Corporation spin-out led by Nomura
Phase4 Ventures, Zosano is funded by New Enterprise Associates, Nomura Phase4
Ventures, HBM BioVentures and ProQuest Investments. For more information, please
visit www.zosanopharma.com.

Zosano Pharma, Inc.
John Vuko, CFO, 510-745-1297
jvuko@zosanopharma.com

Copyright Business Wire 2009