Venture Update Vol. XI, #5, May 2007
Done Deals
Morrisville – ChannelAdvisor (www.channeladvisor.com), a provider of e-commerce channel management solutions, has received an additional $30 million in new funding. The funding round was led by New Enterprise Associates (NEA) with participation from current ChannelAdvisor investors Kodiak Venture Partners, Advanced Technology Ventures, Southern Capitol Ventures and eBay. ChannelAdvisor will leverage the additional capital to continue its growth into e-commerce channels such as paid search and comparison shopping engines. Additionally the company plans to expand its offerings into new geographies and investigate acquisition opportunities. Contact Ashley Jones (919.349.4177).
Wilmington – Merrion Pharmaceuticals Ltd. (www.merrionpharma.com), an international specialty pharmaceutical company focused on developing oral drug products, has filed a proposed IPO Registration Statement on Form F-1 with the SEC. Merrion plans to apply to list its American Depositary Shares on the Nasdaq Global Market, and its ordinary shares on the Irish Enterprise Exchange in Dublin, Ireland. Punk, Ziegel & Company is the lead book-running manager. Goodbody Stockbrokers and Stanford Group Company are acting as co-managers. Contact Michelle Miller (910.799.1847).
Durham – Argos Therapeutics (www.argostherapeutics.com), an immunotherapy development company, has raised $5 million in a three-year debt financing arrangement with Silicon Valley Bank and Oxford Finance Corporation. Argos will use the funds for three ongoing clinical trials in renal cell carcinoma (Phase 2), chronic lymphocytic leukemia (Phase 1/2) and HIV (Phase 1), utilizing its personalized RNA-loaded dendritic cell-based immunotherapy (“Arcelis”) technology for cancer and HIV. Contact Jeff Abbey (919.287.6308).
Durham – Semprius, Inc. (www.semprius.com), a semiconductor technology company, has closed a $4.1 million round of venture funding. The financing was co-led by ARCH Venture Partners and Intersouth Partners. Seed investor Illinois VENTURES, which helped found the company, also participated in the financing. Semprius will use the funds for product development and business development. Contact Suzanne Cantando (919.493.6640).
Cary – Covelight Systems (www.covelight.com), a business intelligence software company, has been acquired by Tel Aviv, Israel-based Radware in an all-cash transaction worth $16 million. The completion of the transaction is subject to standard conditions to closing. The addition of Covelight Systems’ flagship “Inflight” product – which captures detailed business events from Web transactions – to Radware’s APSolute application delivery suite will enable companies to leverage business-event intelligence taking place on a network. Contact Melissa Mirabile (1.212.453.2327).
Charlotte – Transbotics Corporation (www.transbotics.com), which offers products and services for the automation of material handling, has entered into a Definitive Asset Purchase Agreement with AutoMotion Systems Inc. for a total purchase price of approximately $239,000. The acquisition will allow Transbotics to fill a product gap that it currently has with smaller less technologically demanding vehicles that can be used in a wide array of industries. Contact Todd Plyler (704.362.1115).
Raleigh – Red Hat, Inc. (www.redhat.com), a provider of open source solutions, has signed a definitive agreement to acquire the business of MetaMatrix, a developer of data management and integration software. This market is estimated to reach $1.3 billion in 2007, according to Forrester Research. This transaction is subject to the satisfaction of certain conditions to closing set forth in the acquisition agreement. Once the transaction is completed, MetaMatrix will be integrated into Red Hat’s JBoss division. Contact Leigh Day (919.754.3700).
Raleigh – INC Research (www.incresearch.com), a therapeutically focused contract research organization, has acquired Advanced Biologics for an undisclosed amount. Advanced Biologics is a full-service contract research organization (CRO) specializing in full-service clinical development to the pharmaceutical and biotechnology industries worldwide. INC Research's investment banking and capital advisory team, Fairmount Partners, played a key role in the acquisition. Contact Erika Schumacher (858.597.6417).
Durham – Parata Systems, LLC (www.parata.com) has acquired the assets of Amistar and Distributed Delivery Networks Corporation related to automated product machine (APM) technology, which enables prescription pickup via self-service kiosks. The sale was completed for an undisclosed amount. Parata's latest acquisition is expected to generate additional jobs in production, marketing, service and support, among other functional areas. In June 2006, Parata was named CED’s Growth Company of the Year. Contact Nanette Kirsch (919.433.4363).
Cary – Office Automation Solutions (OAS) (www.oasolutions.com), a developer of public information management software, has been acquired by Nebraska-based Election Systems and Software (ES&S) for an undisclosed amount. The acquisition of OAS will broaden and compliment ES&S’s current line of business solutions to Secretary of States and other related agencies, further enhancing its ability to provide systems and expertise that reinforce transparency and good government. Contact Ben Hartmere (919.854.4123 x107).
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On the Up
Southeast TechInventures
Morrisville, N.C.
Developing new and innovative technologies is vital to the continued growth and success of the economy, both locally and globally. That's what makes Southeast TechInventures (STI), a local technology accelerator, such an important asset to the Research Triangle.
STI, which presented at the Angel Investor Retreat on April 24 at CED's Venture 2007 Conference, is building an effective technology accelerator to speed the commercialization of technologies and intellectual property in a variety of health care settings.
With more than 20 years of successful leadership experience in both corporate and entrepreneurial settings, Karen LeVert, CEO and co-founder of STI, spearheads the company's daily operation. She spent the early years of her career with a Fortune-500 company assuming roles from computer programmer to general manager of a 500-person operation.
No stranger to entrepreneurship, her first entrepreneurial venture was the launching of a franchise bioremediation company in 1998 that she later sold in 2001. Before co-founding STI, LeVert co-launched a Silicon Valley venture-funded software company in San Francisco, Calif. where she served as Executive Vice-President of Business Development.
LeVert and her staff draw from a wealth of experiences to leverage relationships with research universities, government funding agencies, private investors and corporate entities to provide the structure, process and funding needed to successfully bring new technologies to market.
STI assists developing entities by obtaining intellectual property license from universities, helping to further develop the technology, establishing the entity as a spin-off company, connecting the entity with key financing contacts, and providing valuable business guidance and consulting.
Since its inception in early 2003, STI has provided its services to many local startups including Advanced Liquid Logic, Bioptigen, ImaginOptix and VizorTech. Earlier this year, STI received an undisclosed amount of financing from angels and strategic investors. Contact Karen LeVert (919-941-6080).
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New Developments
Durham – Investment Principals from NC IDEA (www.ncidea.org) recently closed the first round of investments in a new venture fund. The amount raised during the initial round – and the target for the fund – were not disclosed. The new fund will be invested in promising seed and early stage companies in the IT, materials technologies and biomedical applications sectors, with typical investments ranging from $250,000 to $750,000. The fundraising efforts for the new fund are expected to be completed by late 2007. Contact John Cambier (919.941.5600).
Raleigh – Red Hat (www.redhat.com), a provider of open source solutions, will work with the University of North Carolina system and the North Carolina Research Campus to advance the adoption of open source philosophies of standards and collaboration in biotechnology, bioinformatics, public policy and healthcare research. Red Hat plans to establish a presence on the research campus in Kannapolis, N.C., and will work with public and private sector tenants to advance the usage of open source technology, process and problem solving in the various research sectors located on the campus. Contact Leigh Day (919.754.3700).
Raleigh – N.C. State University (www.ncsu.edu) will spearhead a new graduate education program in the emerging field of analytics. The Institute for Advanced Analytics will oversee the Master of Science in Analytics (MSA), a graduate program approved that is set to admit its first class of 40 students in July. The MSA is an intensive 10-month professional degree that focuses exclusively on the tools, methods and applications of data analytics. Dr. Michael Rappa, who proposed the institute in April 2006, has been named its founding director. Contact Mick Kulikowski (919.515.3470).
Morrisville – etrials Worldwide, Inc. (www.etrials.com), a provider of eClinical software and services, has signed a contract with an undisclosed U.S.-based pharmaceutical company that could result in revenue to etrials of approximately $3.4 million over the next 24 months, if the trials and treatments contemplated by the contract are fully implemented with etrials. The agreement with the pharmaceutical company will enable the company to capture, manage, integrate and analyze trial data using etrials' electronic data capture , electronic diary and interactive voice/web response software solutions. Contact Mike Banas (312.553.6704).
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In the Pipeline
Durham – Inspire Pharmaceuticals, Inc. (www.inspirepharm.com) has received FDA approval for AzaSite (azithromycin ophthalmic solution) 1% for the treatment of bacterial conjunctivitis. Inspire anticipates launching AzaSite in the latter part of the third quarter of 2007 and expects to generate $30 million to $45 million in sales in the 2008 calendar year based on current manufacturing and commercial plans. Contact Jenny Kobin (919.941.9777 x219).
Burlington – Laboratory Corporation of America Holdings (www.labcorp.com), an esoteric and oncology testing company, has signed an agreement with Applera Corporation granting LabCorp a license to Celera's breast cancer metastasis and estrogen/progesterone receptor discoveries. The license agreement allows LabCorp to select from among Celera's genomic findings to develop and commercialize two molecular oncology laboratory service tests. Contact Pam Sherry (336.436.4855).
Morrisville – Salix Pharmaceuticals, Ltd. (www.salix.com), has licensed exclusive rights to market DIACOL 1500 mg Tablets in 28 territories in Europe to Dr. Falk Pharma GmbH of Freiberg, Germany. As part of the agreement, Falk also has a non–exclusive option to market DIACOL in Italy and France. Under the terms of the agreement, Salix may receive up to $4 million in milestone payments, as well as royalty payments based on product sales. Falk made the first milestone payment of $1.5 million upon execution of the agreement. Contact Mike Freeman (919.862.1000).
RTP – AlphaVax Inc. (www.alphavax.com), a life science company developing a new vaccine technology, announced that immunization of volunteers has been initiated in clinical trials evaluating vaccines for cytomegalovirus (CMV) and influenza developed with the company’s novel alphavaccine technology. These projects were funded in part by grants AI62632 and AI060060 from the National Institutes of Allergy and Infectious Diseases, National Institutes of Health, Department of Health and Human Services. Contact Jeff Chulay (919.595.0399).
Raleigh – North Carolina State University (www.ncsu.edu) has announced that the U.S. Environmental Protection Agency (EPA) has approved BioUD, a natural alternative to the mosquito repellent DEET identified at the university and licensed by HOMS, LLC. While EPA has deemed DEET safe for adults, recent reassessments have resulted in new child safety labeling requirements on all products containing the chemical. HOMS will immediately begin distribution of the BioUD formula in a product called “Bite Blocker.” Contact Keith Nichols (919.515.3470).
Wilmington – AAIPharma Inc. (www.aaipharma.com) has completed over $2.0 million in upgrades to its parenteral manufacturing facility in Charleston, South Carolina and its sterile product release operation in Wilmington, N.C. Improvements were made to increase capacity and to ensure compliance with European Union (EU) aseptic processing and testing guidelines, positioning the facilities to be approved for aseptic filling and release of products exported to the EU. Contact Sara Strassle (910.254.7000).
Apex – Computational Engineering International (CEI) (www.ensight.com), a provider of engineering and scientific visualization tools, has signed an agreement with Red Cedar Technology to License its ABAQUS ODB API Reader. The agreement makes it possible for Red Cedar Technology to incorporate the reader into its HEEDS application, a program that interfaces with popular computer-aided engineering applications to automate the “design optimization” process. Contact Amanda Baley (919.363.0883).
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Mark Your Calendar!
Biotech 2007 Conference
May 14-15, 2007
Durham Marriott at the Civic Center
Durham, NC
CED's 2007 Entrepreneurial Excellence Awards
June 12, 2007
American Tobacco Historic District
Durham, 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.
Robert Albright, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
FAX: 919-549-7405
email: news@cednc.org