Acacia Pharma Closes $10 Million Investment Round

Funds to be Used to Complete Two Phase II Programmes

CAMBRIDGE, England, March 31, 2011 - Acacia Pharma, a pharmaceutical company specialising in the
development of drugs for cancer supportive care, announces it has
successfully closed a funding round, raising a total of $10 million. New
investor Lundbeckfond Ventures joins Gilde Healthcare in this Series A
financing.

Acacia Pharma will use the proceeds to complete Phase II
development of its two lead product opportunities, APD421 for the prevention
of nausea & vomiting in post-surgical patients and APD515 for the treatment
of xerostomia (dry mouth) in advanced cancer patients. As a consequence of
the investment, Associate Professor Johan Kordel of Lundbeckfond Ventures
will join the Board of Acacia Pharma.

Julian Gilbert, Acacia Pharma's CEO said, "I am delighted to
welcome Lundbeckfond Ventures to the company and thank Gilde Healthcare for
their continued support. These new funds allow the company to drive its lead
programmes forward to achieve significant clinical milestones as efficiently
as possible."

Johan Kordel of Lundbeckfond Ventures added, "Acacia Pharma
has an experienced team and an innovative and resource efficient approach to
developing several products meeting unmet medical needs in the underserved
cancer supportive care area. Acacia Pharma fits well with our investment
strategy."

Pieter van der Meer of Gilde Healthcare commented, "We are
pleased to offer continued support to Acacia Pharma. The company has
developed a broad pipeline of product opportunities, all of which being
tested in the clinic. We anticipate a bright future for the company and its
shareholders."

About Acacia Pharma

Acacia Pharma (www.acaciapharma.com) is a
pharmaceutical company focused on cancer supportive care, a rapidly
developing commercial opportunity. The growth in the cancer supportive care
market has been driven by the increasing incidence of cancer, the expansion
of effective cancer therapies and the desire to improve both the
effectiveness of treatment and the quality of life of cancer patients.

Acacia Pharma has generated a pipeline of product
opportunities addressing a range of supportive care indications such as
nausea & vomiting, xerostomia and cachexia using a commercially driven
approach to product discovery based on known drugs. This strategy leads to
product opportunities with a higher probability of success and enables rapid
clinical proof-of concept. In addition, Acacia Pharma's products are expected
to reach the market quickly given that they are based on the novel use of
well-characterised pharmaceuticals.

Acacia Pharma is led by an experienced management team who
have already successfully built and exited a number of life sciences
companies. Management, Gilde Healthcare and Lundbeckfond Ventures are the
Company's key shareholders. Acacia Pharma is based in Cambridge, UK.

About Lundbeckfond Ventures

Lundbeckfond Ventures (www.lundbeckfondventures.dk) is
an open and evergreen life science venture fund investing in companies
primarily in Europe, but selectively also in the US. It is financially driven
and invests in late stage drug discovery and development, as well as in
medtech and diagnostics. Lundbeckfond Ventures is part of the asset
management subsidiary of the Lundbeck Foundation which in addition to
substantial financial assets has majority or significant ownerships in H.
Lundbeck A/S, ALK-Abello A/S and Falk A/S.

About Gilde Healthcare Partners

Gilde Healthcare Partners (www.gildehealthcare.nl) a
transatlantic venture and growth capital firm, is headquartered in Utrecht,
the Netherlands in Utrecht. It has over EUR400 million under management and
is actively looking to lead new investments in therapeutics, diagnostics,
medical devices and enabling technologies. Gilde can invest up to EUR15
million in a company. Gilde is a successful builder of healthcare businesses
across Europe. By investing in companies with clear achievable business
models, Gilde has used its financial resources and network to create
significant value for both its investors and the entrepreneurs it backs. For
a list of Gilde's portfolio companies please visit the website.

    Contacts

    Acacia Pharma
    Julian Gilbert
    Telephone: +44-1223-875132

    Citigate Dewe Rogerson
    David Dible
    Mark Swallow
    Telephone: +44-20-7638-9571

    Lundbeckfond Ventures
    Johan Kordel
    Telephone: +45-39-12-80-00

    Gilde Healthcare Partners
    Pieter van der Meer
    Telephone: +31-30-219-25-36

Acacia Pharma, Julian Gilbert, Telephone: +44-1223-875132; Citigate Dewe Rogerson, David Dible, Mark Swallow, Telephone: +44-20-7638-9571; Lundbeckfond Ventures, Johan Kordel, Telephone: +45-39-12-80-00; Gilde Healthcare Partners, Pieter van der Meer, Telephone: +31-30-219-25-36