Venture Update Vol. XI, #11, November 2007
Done Deals
Arysta LifeScience Sold to Permira Advisers for
$2.2 Billion
Cary-based Arysta LifeScience (www.arystalifescience.com),
an agriscience and lifescience development company, has
been sold to Europe’s Permira Advisers, a private equity
firm, for $2.2 billion. Headquartered in Tokyo, Arysta has
its North American headquarters in Cary. The company makes
products, such as insecticides, for crop protection. All
of the approximate 40 individuals who work at the company’s
Cary office expected to retain their jobs. Contact Linda
Frerichs (919.678.4948).
Cisco Acquires WiMax Wireless Technology
San Jose-based Cisco Systems (www.cisco.com),
a networking technology company, bought Texas-based Navini
Networks for $330 million in an effort to control and expand
its wireless technology offerings. Navini’s WiMax technology,
a wireless communications technology similar to WiFi but
with a more expansive range, will help Cisco build high-speed
Internet networks in emerging markets. WiMax wireless networks
can extend for miles and operate at speeds 30 times faster
than WiFi. Cisco is headquartered in San Jose, Cali. and
employs 3,200 in the Triangle. Contact John Noh (408.853.8445).
Motricity to Acquire InfoSpace Mobile Services
Division for $135 Million
Durham, N.C.-based Motricity (www.motricity.com),
a provider of mobile content services and
technology, has signed an agreement to acquire the mobile
services business unit of InfoSpace for
close to $135 million in cash. Investor Carl Icahn, who
has previously invested in Motricity, and Advanced Equities
provided significant investments to lead the funding of
the acquisition. Under the agreement, Motricity will acquire
InfoSpace's mobile services division, which provides mobile
search, storefronts, portals and messaging services for
mobile carriers. The acquisition is expected to provide
over $100 million in additional annual revenues for Motricity.
Contact Les A. Hamashima (919.287.7345).
Tengion Raises $33 Million in Third Round
Winston-Salem-based Tengion (www.tengion.com),
a clinical stage biotechnology company, has raised $33 million
in its third round of financing from investors including
Deerfield Partners, Bain Capital, Johnson & Johnson
Development Corp., HealthCap, Quaker BioVentures, Oak Investment
Partners, L Capital Partners, Horizon Technology Finance
and Oxford Finance Corp. The company is developing "autologous
neo-organs and tissues," such as bladders, that are
derived from the patient's own cells and says it has the
potential to enable people with organ and tissue failure
to lead healthier lives without donor transplants or the
side effects of current therapies. Contact Gary Sender (gary.sender@tengion.com).
Aurora Funds Participates in
$20 Million Investment in GA-based Pharma Company
Durham-based Aurora Funds (www.aurorafunds.com),
a venture capital firm, was one of several investment partners
to participate in a $20 million Series B round of financing
in Georgia-based Metastatix, a drug development company
working to develop treatments for HIV and cancer. Also participating
in the round were Frazier Healthcare Ventures, H.I.G. Ventures,
S.R. One, the Georgia Tech Advanced Technology Development
Center, CM Capital, MedImmune Ventures, Georgia Venture
Partners and Centrosome Ventures. Aurora also participated
in the company’s A round of financing in September 2006.
Contact Jeff Clark (919.484.0400).
Vitrue Closes on $10 Million Series B Funding
Atlanta-based Vitrue (www.vitrue.com),
a video-centric social media company, has closed on a $10
million, Series B round of financing, led by Dace Ventures.
Other investors involved in the round include Comcast Interactive
Capital, Turner Broadcasting and General Catalyst Partners.
The company previously raised $5.5 million in its first
round. Vitrue creates branded video-centric social media
sites that enable consumers to create, edit and submit videos
and content. Contact Gloria Griessman (404.352.0711).
Frontier Capital Invests $6.5 Million in M3TG
Charlotte-based Frontier Capital (www.frontierfunds.com),
an investment firm, has invested $6.5 million in Charlotte-based
M3 Technology Group (M3TG), a technology company which provides
consulting and managed services for enterprise messaging,
collaboration and active directory solutions for mid-market
and large corporations. The company will use the investment
to fund new product development initiatives, support the
expansion of its professional and enterprise services teams,
and increase the company’s direct sales and channel marketing
activities. Contact Katherine Webb (919.863.2393 x223).
PhaseBio Lands Additional $5.4 Million in Funding
Durham-based Phase BioScience (www.phasebio.com),
a biotechnology company that develops biotherapeutics and
improves drug delivery and purification, has raised an additional
$5.4 million in Series B financing. Total funding for the
second round of venture capital is now $6.6 million. Lead
investors in the second round include Fletcher Spaght Ventures
and Johnson & Johnson Development Corporation. Hatteras
Venture Partners also re-invested. This funding will provide
the financial resources needed to continue the development
of PhaseBio’s drug technologies. Contact Gabriel R. Cipau,
Ph.D. (919.271.0926).
Chrysalis Ventures Invests $2.5 Million in VoIP
Company
Louisville, KY-based Chrysalis Ventures (www.chrysalisventures.com),
a venture capital firm focused on early- and expansion-stage
companies in the Southeast and Midwest, has invested $2.5
million in Charlotte-based SinglePipe, a provider of VoIP
services. Meritus Ventures also participated in the round.
This is the second round of financing raised by the company;
Chrysalis previously invested $4 million in SinglePipe in
early 2007. Contact Wright Steenrod (502.583.7644).
Entegrion Awarded $2 Million for Development
of Trauma Treatment
RTP-based Entegrion (www.entegrion.com),
a life sciences company, was awarded a $2 million Congressional
appropriation for the continued development of the infusible
hemostatic agent Stasix®, a drug that is expected to control
internal hemorrhage in trauma and surgical patients. The
company, along with scientists and physicians at the University
of North Carolina at Chapel Hill, develops advanced, practical
and cost-effective therapeutics for limiting bleeding resulting
from combat injuries, civilian trauma, surgery and disease,
including its first product, Stasilon®, a hemostatic wound
dressing, developed in conjunction with the U.S. Office
of Naval Research. Contact Meredith E. Mannheim (919.536.1500).
Align Pharmaceuticals Acquired by Cyclacel
Cary-based Align Pharmaceuticals (www.alignpharma.com),
a biopharmaceutical company, has agreed to be acquired by
New Jersey-based Cyclacel, a drug development company, for
as much as $5.3 million in a cash and stock deal. Align,
which develops products for management of radiation and
chemotherapy, will be relocated to the Cyclacel facility
in N.J. Cyclacel develops products in the areas of oncology
and hematology. Contact Corey Sohmer (908.517.7330).
Quintiles Latin America Acquires Bio-Trials
RTP-based Quintiles Transnational Corp. (www.qtrn.com),
a bio tech, pharma and healthcare contract research organization,
announced its Latin American subsidiary has acquired Bio-Trials,
a Central American clinical research organization. Bio-Trials
provides clinical monitoring, clinical site coordination,
regulatory support, study management and supply distribution
services. Quintiles currently has more than 19,000 employees
and offices in more than 50 countries. Terms of the deal
were not disclosed. Contact Greg Connors (919.998.2000).
Oriel Therapeutics Raises Third Round of Funding
RTP-based Oriel Therapeutics (www.orieltherapeutics.com),
a drug delivery and development company, has raised an undisclosed
amount of funding in its third round of venture capital.
The round was led by New Leaf Venture Partners. The company,
a spin out of the University of North Carolina at Chapel
Hill, develops drug delivery and development methods for
the pharmaceutical, biotechnology, and diagnostic industries
for the development and commercialization of innovative
pre-metered unit and multi-dose dry powder delivery systems
for medicines for asthma and COPD. Oriel has raised $5 million
in its previous two rounds of venture financing. Contact
Paul Atkins (919.313.1290).
DARA Biosciences Acquires Point Therapeutics
in Reverse Merger
Raleigh-based DARA Biosciences (www.darabiosciences.com),
a development-stage pharmaceutical company, announced it
will merge with Boston-based Point Therapeutics, a biopharmaceutical
company, in a deal which gives DARA stockholders 96.4% of
Point’s outstanding shares and results in Point changing
its name to DARA. This reverse merger allows the privately-held
DARA to take advantage of Point’s public company status,
avoiding the complex and pricey process of an IPO. Terms
of the deal have not been disclosed. Contact Lynn H. Morris
(919-872-5578).
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On the Up
Secure Command, LLC
Fairfax, Virginia
Imagine a virtual world where your computer operating system is safeguarded from spyware, malware and the evil deeds of mindless hackers; a virtual world where your computer operates in a sort-of Internet Cleanroom. No need to imagine…this virtual world exists with credit to the innovative mind behind Secure Command, LLC (www.securecommand.com). Founded in 2006 by CEO Dr. Anup Ghosh, Secure Command, LLC offers a next-generation security product, called Internet Cleanroom Workstation, to protect user workstations and servers from Internet-based attacks.
While current approaches to security attempt to protect, detect, and react to Internet security threats, Secure Command products use virtualization to isolate corporate systems from the Internet. The system allows the user to remain connected and have access to the Internet through “disposable” operating systems which are created on demand and then disposed of after use. This virtual operating system protects the host operating system and corporate network from Internet-based attacks, while still allowing users to seamlessly connect to the Internet using standard applications and without compromising their machines and their corporate networks. The host operating system maintains its pristine condition despite the threats.
Most recently, Secure Command was a demo participant and stage presenter at CED’s Tech 2007 conference. The company took home first prize in the coveted Tech 2007 People’s Choice Award Competition, after receiving the most votes from conference attendees.
Dr. Ghosh is a seasoned expert in the online securities field having served as a program manager in the advanced technology office at the Department of Defense’s Defense Advanced Research Projects Agency (DARPA); authored three books on e-commerce security; and been the recipient of the 2005 National Security Agency Frank Rowlett Trophy for Individual Contributions for his breakthrough research into cyber defense to include technology that automatically quarantines computer-based worms, limiting their migration and restoring the users computer to its pre-infected state within minutes. Contact Anup Ghosh (703.340.6569).
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New Developments
INC Research to Add 1,100 Jobs in Raleigh
Raleigh-based INC Research Inc. (www.incresearch.com),
a contract research organization which specializes in the
development of drugs to treat central system disorders,
cancer, infectious diseases and childhood illnesses, has
received support from the State of North Carolina to expand
its presence in Raleigh. The company plans to add close
to 1,100 jobs and make capital investments of $19.2 million
in Raleigh during the next four years. INC currently employs
362 workers in the state and has a presence in 36 locations
worldwide. Contact Erika Schumacher (858.597.6417).
Local Universities Receive Federal Grants for
Genomics Research
Durham-based Duke University’s Institute for Genome Sciences
and Policy (www.duke.edu)
and Chapel-Hill-based University of North Carolina (UNC)(www.unc.edu)
have been awarded $6.5 and $5.6 million respectively from
the National Human Genome Research Institute (NHGRI) (of
the National Institutes of Health) for human genome research.
According to the NHGRI, Duke’s grant is part of the ENCyclopedia
of DNA Elements (or ENCODE) project, a program is designed
to study the “entire human instruction book” as included
in the genome, while the UNC grant will be used to examine
the impacts of discoveries from large-scale genomic research
for individuals, families and populations, with a particular
focus on studies with implications for specific racial,
ethnic or other socially defined groups.
BTEC Awarded $455,000 FDA Grant
Raleigh-based Biomanufacturing Training and Education Center
(BTEC)(www.engr.ncsu.edu/btec),
a hands-on, industry-specific Golden LEAF education and
training center located on the North Carolina State University
Centennial Campus, was awarded a federal grant from the
U.S. Food and Drug Administration for training of field
and operational personnel in the agency’s Office of Regulatory
Affairs. The grant is worth up to $455,000 over a five year
period. The training will include distance learning and
hands-on direction, and it slated to begin next spring.
Contact Rick Lawless (919.513.0969).
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In the Pipeline
Lab Corp Partners with New Jersey Firm in Genomics
Exploration
Burlington-based Laboratory Corporation of America Holdings
(www.labcorp.com),
one of the world’s largest clinical laboratories, will team
with New Jersey-based MedCo Health Solutions to explore
using the drug tamoxifen with genotyping to combat breast
cancer. Genotyping bases drug prescriptions on an individual’s
gene test results to ensure that each cancer patient receives
the appropriate drugs and dosages. LabCorp is a pioneer
in genomic testing and the commercialization of new diagnostic
technologies. Contact Eric Lindblom (336.436.6739).
Targacept Plans to Advance TC-5214 as Augmentation
Therapy for Depression
Winston-Salem-based Targacept (www.targacept.com),
a clinical-stage biopharmaceutical company, plans to advance
TC-5214 into clinical development as an augmentation therapy
for patients who don’t respond satisfactorily to first-line
antidepressant treatments. Trials showed that patients
who received TC-5214 experienced improvement in symptoms
of depression and irritability. The development of TC-5214
has the potential to provide more adequate treatment options
for the millions of Americans who suffer from Major depression.
Contact Alan Musso (336.4802186).
Biolex Therapeutics Releases Phase 2a Clinical
Results for Hepatitis C Treatment
Pittsboro-based Biolex Therapeutics, a clinical-stage biopharmaceutical
company, announced successful preliminary top-line results
from the Phase 2a trial, a twelve-week study designed to
evaluate a range of four doses of Locteron administered
once every two weeks in combination with the antiviral drug
ribavirin. The study results also suggested 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. Biolex is co-developing Locteron with its partner
OctoPlus N.V. The company is expected to begin Phase 2b
trials in the first half of 2008. Contact Dale Sander (858.663.6993).
Arbor Pharmaceuticals to Partner with Campbell
University on Pediatric Treatment
Raleigh-based Arbor Pharmaceuticals (www.arborpharma.com),
a pharmaceutical company focused on the licensing, development,
and commercialization of products for pediatricians, announced
it will collaborate with the North Carolina-based Campbell
University Pharmaceutical Sciences Institute (CUPSI) to
develop a novel formulation to treat ear infections in children.
Arbor Pharmaceuticals collaborates with pharmaceutical development
companies and established promotional partners in the pharmaceutical
industry to develop and market their products in order to
serve the needs of pediatricians throughout the US. CUPSI
is a pharmaceutical contracting organization, which provides
quality research, development and small-scale production
services at a competitive price to the pharmaceutical and
biotechnology industries. Contact Jarrett Disbrow (919.792.1700
x1701).
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Mark Your Calendar!
CED’s
Venture Capital for Entrepreneurs
Session 1: November 29, 2007
Session 2: January 16, 2008
N.C. Biotechnology Center
RTP, N.C.
CED’s
Globalization Conference
February 14, 2008
Embassy Suites RTP East
Cary, N.C.
CED’s MedTech Conference
March 6, 2008
Duke University
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.
Jill Weinberger, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919.549.7500
FAX: 919.549.7405
email: news@cednc.org