Venture Update Vol. XI, #8, August 2007
Done Deals
Cary – R.H. Donnelley Corporation (www.rhd.com), a Yellow Pages and online local commercial search company, has signed a definitive agreement to acquire Business.com for $345 million. Through this transaction, R.H. Donnelley will add to its existing interactive portfolio a rapidly growing and profitable business-to-business company, with online properties that include Business.com, Work.com and the Business.com Advertising Network. Contact Tyler D. Gronbach (919.297.1541).
Durham – Inspire Pharmaceuticals, Inc. (www.inspirepharm.com), a biopharmaceutical company, has entered into a securities purchase agreement with Warburg Pincus for the sale of $75 million of exchangeable preferred stock. Inspire plans to use the funding from the transaction to fund AzaSite commercialization and several Phase III development programs. Some of the funding will also go towards working capital and general corporate purposes. Contact Jenny Kobin (919.941.9777).
Wilmington – TranS1, Inc. (www.trans1.com), a medical device company focused on minimally invasive surgical procedures to treat lower back pain, has filed a Form S-1 registration statement with the Securities and Exchange Commission for its proposed initial public offering share of its stock. The number of shares that will be offered and the price at which they will be sold is yet to be determined, but the company seeks to raise an estimated $80.5 million. Lehman Brothers Inc. and Piper Jaffray & Co. will act as joint book-running managers. Contact Mary Margaret Grogan (910.332.1700).
Chapel Hill – Emergent Game Technologies (www.emergent.net), an interactive game innovator, has secured $12 million in Series D funding. Jerusalem Venture Partners (JVP) and Worldview Technology Partners led the round with Adena Ventures, Walker Ventures, Copan, and Cisco Systems also participating. Emergent plans to use this money to consolidate its northern California office into its existing research and development facility in Chapel Hill. Contact Peter Evers (415.863.4900).
Raleigh – MiCell Technologies, Inc. (www.micell.com), an early-stage company that develops biomedical materials, has closed on $7 million in new venture funding. Investors in the round include Invemed Catalyst Fund and GE Pension Plan. Founded in 2001, MiCell developed a surface modification technology that can modify and coat biomedical devices with advanced polymers and drugs. The company plans to use the funding to accelerate laboratory data and begin preliminary animal testing. Contact James McClain, Ph.D., (919.313.2111).
Cary – NephroGenex (www.nephrogenex.com), a biotechnology company, has raised $3.3 million in its first round of venture capital. Investors in the deal include Care Capital, BioStratum and Vanderbilt University. NephroGenex is developing advanced treatments for kidney disease. The company is acquiring commercial rights to clinical-stage drug candidates. Contact J. Wesley Fox, Ph.D., (919.678.9512).
Durham – RadarFind Corporation (www.radarfind.com), a healthcare technology startup company, has received $3 million in a Series B round of funding. NC IDEA Fund invested in the round. RadarFind is developing technology to help hospitals track equipment. Contact Terry Kane (919.765.0043).
Winston-Salem – OptiVia Medical (www.optiviamedical.com), a medical device startup focused on minimally invasive surgical devices, has closed on $500,000 in funding from individual angel investors. The company is seeking an additional $1.5 million in a Series B round. OptiVia has received funding in the past from Inception Micro Angel Fund (IMAF) and the Piedmont Angel Network (PAN). Contact Marc Finch (336.748.0402).
Durham – Semprius, Inc. (www.semprius.com), a semiconductor startup company, has received an undisclosed amount of money from Applied Ventures. Semprius recently closed on $4.7 million Series A funding in April. Investors from the Series A round include Intersouth Partners, Arch Venture Partners and Illinois Ventures. The investment from Applied Ventures will be used for the development of a novel transfer printing technology for the manufacture of advanced semiconductor devices. Contact Karl von Gunten (919.460.6984).
Cary – My EDGAR, Inc. (www.myedgar.com), a financial services company, has completed its acquisition of Florida-based Bassett Press, Inc. Bassett Press will continue to operate as a wholly owned subsidiary of My EDGAR and will keep its entire staff and operations. Through acquisitions and client sales, My EDGAR continues to pursue its goal of becoming one of the largest Edgar financial partners for today's public companies. Contact Brian R. Balbirnie (919.481.4000).
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On the Up
Semprius, Inc.
Durham, N.C.
With the technology industry soaring these days, it comes as no surprise that Semprius, Inc., a semiconductor technology company, has taken a giant leap in the advancement direction. Semprius is commercializing an innovative process for printing high performance single crystal semiconductors on materials ranging from glass to flexible and rigid plastics.
After founding Semprius in 2005 as a spinout of the University of Illinois, Dr. John Rogers, Dr. Ralph Nuzzo, Dr. George Whitesides and Etienne Menard set up company headquarters in Durham, N.C., near the Research Triangle Park, for its prominence and involvement in the high-tech industry.
Semprius’ semiconductor technology allows for the fabrication of thin, lightweight and durable electronics at a very low cost, and the resulting circuits have a higher level of performance than organic semiconductors. The initial applications of this technology were applied to mobile communications, flexible digital X-ray detectors, TFT backplanes for flat panel displays, and radio frequency identification (RFID). The technology can also be used to make large flexible displays or rubber gloves with sensors to be used in surgery.
Since its founding, Semprius has received numerous awards and recognitions. In 2006, Semprius won the Wall Street Journal’s Technology Innovation Award for making large-scale, high-performance electronic circuits that can be applied to any surface. In June 2007, Semprius was awarded the Council for Entrepreneurial Development’s Spin-out of the Year award, given to the company that shows the most potential for impact in its market and success in the future.
Along with these honors, Semprius has received a significant amount of funding. In April 2007, Semprius received $4.1 million from Intersouth Partners and ARCH Venture Partners and in June 2007, Semprius received a Small Business Innovation Research Phase 1 grant worth $150,000 from the National Science Foundation. Semprius will use this capital to hopefully become the first company to develop a cost-effective process for forming high-performance thin-film electronic devices on plastic substrates. Contact Joseph Carr (919.806.4378).
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New Developments
RTP – RTI International (www.rti.org), a scientific research and development institute, has been selected by the U.S. Agency for International Development to implement its AIDS Support and Technical Assistance Resource Sector One Indefinite Quantity Contract (AIDSTAR Sector 1). RTI and its nine fellow partners will undertake various activities, including Treatment with anti-retroviral therapy and related services, reduction of stigma and discrimination against persons living with HIV/AIDS and prevention and support for those living with the disease. The American Red Cross, Baylor International Pediatric AIDS Initiative, CARE, International Humana People to People Movement, the Infectious Disease Institute, the Manoff Group, Pact, Plan USA and Project Concern International make up the RTI consortium. Contact Lisa Bistreich (919.316.3596).
Winston-Salem – Wake Forest University (www.wfu.edu) has launched two startup companies, FiberCell and PlexiLight, to turn breakthrough technologies developed at the university into products for the commercial marketplace. FiberCell plans to develop the next generation of solar cells based on a novel architecture that utilizes nanotechnology and optical fibers to dramatically boost efficiency. PlexiLight plans to develop a revolutionary lighting source that is lightweight, ultra-thin and energy efficient. FiberCell and PlexiLight have received startup funding from Wake Forest and Connecticut-based NanoHoldings. Contact Eric Frazier (336.758.5237).
RTP – AlphaVax (www.alphavax.com), a vaccine technology company, has been awarded $3.6 million from the National Institute of Allergy and Infectious Diseases (NIAID) of the National Institutes of Health (NIH). The three-year award supports the advancement of preclinical studies and the development of new adjuvant technologies based on the company’s proprietary vector platform. The key experimental observations are RNA replicon vectors that can serve as highly potent adjuvants for co-administered protein immunogens, such as the influenza vaccine. Over the years, AlphaVax has received several NIH awards. Contact Dr. Jonathan Smith (919.595.0321).
Cary – Calvert Holdings (www.calvertholdings.com), a diversified biotechnology firm, has formed Calvert BioCapital Fund I, a new venture capital fund that will acquire and develop early-stage biopharmaceutical compounds and technologies. Michael Recny will be the co-founder and managing partner of the fund. Calvert Holdings will provide the initial seed investment for Calvert BioCapital and will seek additional capital from potential limited partners. Contact Lisa Creech Bledsoe (919.854.4453).
RTP – Jenken Biosciences (www.jenkenbio.com), a specialty pharmaceutical company, has received a $142,716 low-interest loan from the North Carolina Biotechnology Center. Jenken plans to use the funding to advance products and will test their drug, JKB-121, a treatment for liver inflammation in people who are obese and have diabetes. The research loan Jenken received is one of many offered by Biotech Center to help enhance entrepreneurial life science efforts across North Carolina. Barry Buzogany (919.765.0032).
Cary – BioLink Life Sciences, Inc. (www.biolinkonline.com), a niche pharmaceutical company, has announced that they have received two SBIR grants totaling $158,000. The U.S. Department of Agriculture and North Carolina Department of Commerce awarded the two grants. BioLink will use the money to advance the development of their iron supplement for people with the iron deficiency, anemia. Over the past year, BioLink has filed five patents for its technology and hope to bring their products to the market. Contact Deanna Nelson (919.678.9478).
RTP – BioMedomics, Inc. (www.biomedomics.com), a private biomedical company that launched in 2006, has received a $100,000 federal grant from the U.S. Centers for Disease Control and Prevention. The North Carolina Biotechnology Center recently awarded BioMedomics a grant worth $25,000. The funding will aid in boosting the development of BioMedomics’ technology of developing personalized diagnostics based on gene detection. Contact Dr. Frank Wang (919.883.5542).
RTP – North Carolina Biotechnology Center (www.ncbiotech.org), has loaned $50,000, along with other services, to two university spinout companies. Provagen, the first spinout from N.C. A&T State University, is developing protein technology. Sirga Advanced Biopharma, a spinout from North Carolina State University, is developing therapies for drug-resistant diseases. The Technology Enhancement and Acceleration Model (TEAM) provided the loans, while Business Acceleration and Technology Outlicensing Network (BATON) provided legal and financial guidance for the startups. Contact Barry Teater (919.549.8814).
RTP – Semiconductor Research Corporation (SRC) (www.src.org), the world’s leading university-research consortium for semiconductors and related technologies, will be recognized at the White House for its “critical” contributions to the U.S. – and, ultimately, the world’s – chip industry. Representatives from the consortium and industry attended the award ceremonies on July 27 to celebrate their National Medal of Technology in Washington. The National Medal of Technology represents the nation’s highest honor for technological innovation. Contact Scott Stevens (512.413.9540).
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In the Pipeline
Pittsboro – Biolex Therapeutics (www.biolex.com), a privately held biopharmaceutical company, has announced successful initial results from the SELECT-1 Phase IIa clinical trial of Locteron, the first controlled-release interferon alfa being developed for the treatment of chronic hepatitis C. In the 12-week Phase IIa trial, the combination of the highest dose of Locteron evaluated and the antiviral drug ribavirin achieved an early virologic response (EVR) in 100% of the hepatitis C patients treated. The study results also indicated that patients receiving Locteron experienced side effects that were less frequent and less severe than those previously reported in clinical trials for the currently marketed pegylated interferons and for albumin-fused interferon (Albuferon) currently under development. Biolex is co-developing Locteron with its partner OctoPlus N.V. Contact Michelle Linn (508.419.1555).
RTP – Icagen, Inc. (www.icagen.com), a biopharmaceutical company, has filed an Investigational New Drug application (IND) with the U.S. FDA for ICA-105665, a novel small molecule compound for the treatment of epilepsy. ICA-105665 is an activator of subtypes of KCNQ ion channels, which are attractive targets for the treatment of epilepsy based on their function and genetic linkage to a seizure disorder. ICA-105665 will be administered orally and is intended to be developed as a chronic therapy for patients with epilepsy. Provided that the IND is accepted, during the third quarter of 2007 Icagen plans to initiate a Phase I clinical trial. Contact Richard D. Katz, M.D., (919.941.5206).
Winston-Salem – Targacept, Inc. (www.targacept.com), a clinical stage biopharmaceutical company, has initiated a Phase I clinical trial of TC-5619, a novel small molecule that modulates the activity of the neuronal nicotinic receptor (NNR) subtype known as alpha7. TC-5619 was discovered using Targacept’s proprietary drug design technology known as Pentad(TM) and is the lead product candidate in its alpha7 NNR program. The alpha7 NNR is associated with a variety of biological functions. In particular, the alpha7 NNR has been shown in animal studies to be an essential regulator of both inflammation arising from injury or infection and cognitive functions. Contact Alan Musso (336.480.2186).
Morrisville – Addrenex Pharmaceuticals, Inc. (www.addrenex.com), a specialty pharmaceutical company that develops drugs to combat adrenergic dysregulation, has received $6 million in investments from Atlanta-based Sciele Pharma as part of a licensing agreement. Sciele agreed to market Addrenex’s drug Clioncel that targets hypertension, attention deficit disorder and hyperactivity. Sciele will also have the option to buy an additional 10 percent in Addrenex and will pay milestone payments up to $11 million to the company. Addrenex plans to file a new drug application with the U.S. FDA later this year, along with initiating a Phase III clinical trial. Contact Joseph T. Schepers (678.341.1401).
Durham – Tranzyme Pharma (www.tranzyme.com), a leading biopharmaceutical company developing drugs for gastrointestinal and metabolic diseases, has received U.S. FDA fast track designation for its novel grehlin agonist, TZP-101. Tranzyme’s TZP-101 will provide treatment for severe gastroparesis and post-operative ileus (POI). The fast track designation requires the FDA to assist in the development and expedite the review of TZP-101 because it has the potential to address an unmet medical need. Contact Vipin Garg, Ph.D. (919.434.6643).
Durham – Metabolon (www.metabolon.com), a developer of biomarker technologies and services, has announced that they are expanding to include integrated service that combines information gathered from a variety of sources. Called "mVision," the new product lineup will combine discovery, analysis and effects data to help clients in their research efforts. mVision will identify biomarkers from a variety of chemical classes and in several types of samples, like plasma and urine. mVision is the fourth service that Metabolon offers to help researchers understand disease processes and evaluate drug effects. Contact Stephanie Ferrell (919.287.3359).
Durham – Aldagen, Inc. (www.aldagen.com), a biotechnology company advancing a pipeline of clinical-stage regenerative therapies, has established a Class 10,000 clean room for Good Manufacturing Practice (GMP)-certified manufacture of its cellular products. The manufacturing facility is approximately 1,000 square feet and is fully validated and supported by environmental monitoring and quality control activities. The facility has been designed and operating procedures are in place to scale up for commercial manufacture of products upon completion of the trials and approval by the FDA. Contact Ed Field (919.484.2571).
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Mark Your Calendar!
CED's Opportunity Conference
September 10-11, 2007
SunSpree Resort
Wrightsville Beach, N.C.
CED's Tech Conference
October 10-11, 2007
The Friday Center
Chapel Hill, N.C.
CED’s Venture Conference
April 16-18, 2008
Washington Duke Inn & Conference Center
Durham, N.C.
CED’s BioTech Conference
May 19-20, 2008
Benton Convention Center
Winston-Salem, N.C.
Venture Update is published by the
Council for Entrepreneurial Development (CED)
an entrepreneurial support organization located in the Research Triangle Park, N.C.
Jill Weinberger, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
FAX: 919-549-7405
email: news@cednc.org