Portfolio Company Update: Strategic Financing

LEI: 549300Q7EXQQH6KF7Z84

29 March 2023

RTW Venture Fund Limited

Portfolio Company Update: Strategic Financing

RTW Completes $125 Million Strategic Financing in Milestone Pharmaceuticals

· Proceeds from strategic financing expected to support Milestone's operations into mid-2025 including etripamil NDA submission and launch in PSVT

RTW Venture Fund Limited (the "Company"), a London Stock Exchange-listed investment company focused on identifying transformative assets with high growth potential across the life sciences sector, is pleased to note the announcement by Milestone Pharmaceuticals, Inc. (Nasdaq: MIST) ("Milestone") on 28 March 2023 of its $125 million strategic financing with affiliates of existing shareholder, RTW Investments, LP (the "Investment Manager" and "RTW"). The Company confirms that it participated in the financing together with other funds managed by the Investment Manager.

Milestone is a publicly traded clinical stage biopharmaceutical company focused on the development and commercialization of innovative cardiovascular medicines. Milestone is advancing etripamil, its lead investigational product, through Phase 3 clinical trials for paroxysmal supraventricular tachycardia ("PSVT"). Etripamil is a novel calcium channel blocker designed as a self-administered nasal spray for a rapid response therapy in episodic cardiovascular conditions, which may shift the current treatment paradigm for many patients with PSVT from the emergency department to the at-home setting.

The strategic financing was anchored by the purchase of $50 million in convertible notes by RTW-managed funds, including the Company, as well as a commitment by RTW of $75 million in non-dilutive royalty funding, which, together, Milestone expects will support the New Drug Application ("NDA") submission and subsequent launch of etripamil for patients with PSVT. If approved, etripamil is intended to give health care providers a new tool to enable patient self-management. Etripamil has the potential to provide the patient with a greater sense of control over their PSVT, a condition marked by highly symptomatic, unpredictable, and burdensome episodes of cardiac arrhythmia. Milestone plans to submit an NDA to the U.S. Food and Drug Administration in the third quarter of 2023.

On 28 February, Milestone represented 0.64% of the Company's NAV. Prior to the strategic financing, funds managed by the Investment Manager supported Milestone via a $25 million private placement in July 2020, IPO in May 2019 and led an $80 million Series D cross-over financing round in Milestone in October 2018.

Roderick Wong, MD, Managing Partner of the Investment Manager said, "Etripamil has demonstrated strong potential to offer patients a meaningful intervention for the treatment of PSVT outside of the costly and inconvenient acute-care setting and we are highly encouraged by the results of the Phase 3 RAPID study in October 2022. We are excited to expand our partnership with the convertible note and royalty financings to continue to support Milestone's effort to advance etripamil to a potential U.S. regulatory approval and future commercialization efforts."

The full text of the announcement can be found on Milestone's website www.milestonepharma.com.

For Further Information

RTW Investments, LP +44 (0)20 7959 6361 Woody Stileman, Managing Director

Krisha McCune, Director, Venture Fund Client Service

Buchanan +44 (0)20 7466 5107 Charles Ryland

Henry Wilson

George Beale

About RTW Venture Fund Limited:

RTW Venture Fund Limited (LSE: RTW & RTWG) is an investment fund focused on identifying transformative assets with high growth potential across the life sciences sector. Driven by a long-term approach to support innovative businesses, RTW Venture Fund invests in companies developing next-generation therapies and technologies that can significantly improve patients' lives.

RTW Venture Fund Limited is managed by RTW Investments, LP, a leading healthcare-focused entrepreneurial investment firm with deep scientific expertise and a strong track record of supporting companies developing life-changing therapies.

Visit the RTW website at www.rtwfunds.com for more information.

***********

The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events, and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements, as well as those included in any related materials, are subject to risks, uncertainties and assumptions about the Company and/or its underlying investments, including, among other things, the development of the applicable entity's business, trends in its operating industry, expected use of financing proceeds and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

The information contained in this announcement is given at the date of its publication (unless otherwise marked). No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness.

***********