Company Overview

DARA BioSciences™, Inc. (“DARA”) is a Raleigh, North Carolina-based development-stage pharmaceutical company that acquires promising therapeutic molecules and medical technologies directly or through investment in established companies. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials.  The company continues to build a diverse pipeline, including candidates for the treatment of metabolic diseases (diabetes), and pain.  DARA is currently conducting a Phase 2a trial for the treatment of neuropathic pain with KRN5500 and is in later stage preclinical development with a number of programs.

DARA’s experienced team efficiently advances product candidates through clinical development, yielding commercially and medically attractive therapeutics.  The company’s strategy exploits the need of midsize and large pharmaceutical companies to fill their sparse pipelines.  The development and liquidity strategy for each entity varies according to market conditions, stage of development, and competitive market landscape.

A unique aspect of DARA's business model is its strategy to move development programs and affiliated or subsidiary companies toward independence, with a focus on building stockholder value prior to a public offering.   At selected times, DARA may distribute all or substantially all of the stock in a subsidiary or affiliated company to DARA's stockholders, a return on investment without the sale of DARA  itself.

For example, in April 2005, DARA stockholders received a distribution of an aggregate of 2,010,000 shares of Medivation (Nasdaq:  MDVN) subject to a lock-up agreement, and upon expiration of the lock-up those shares were worth approximately $25 million, representing a significant return to our stockholders of record at that time.

Obviously, DARA cannot guarantee success or liquidity in this strategy, and any distributions are at the discretion of the DARA Board of Directors, exercising their business judgment.  Distribution decisions and success can be affected by numerous factors, including securities laws and tax considerations.

To best manage the risks of the Company, DARA utilizes a stringent due diligence process anchored by having knowledge of a drug or technology candidate’s attributes that will most likely yield commercial success. The due diligence, development and commercial expertise resident at DARA help ensure that we identify the highest caliber candidates. Precise, targeted research is then conducted to form a solid basis for future marketing approval and medical and commercial success.

The DARA Biosciences senior management team has substantial experience in the formation of pharmaceutical, biopharmaceutical and medical device companies. They understand how the development and commercialization processes come together to build successful medical brands. Collectively, the leadership team has formed more than 10 companies, most of which have gained access to public markets or provided a significant return to private investors.