Venture Update Vol. XI, #10, October 2007
Done Deals
Overture Secures $12.3 Million in Series C Funding
RTP-based Overture Networks (www.overturenetworks.com),
a network equipment provider, secured $12.3 million in Series
C financing; the funds will be used to increase sales and
marketing efforts and fund global expansion. The investment
was led by New York-based Lehman Brothers Venture Partners,
a new investor in Overture Networks; existing investors
in the company include Silicon Valley-based Morgenthaler
Ventures, Durham-based Intersouth Partners, Washington D.C.-based
TDF, Switzerland-based Armada Ventures, Atlanta-based Gray
Ventures and other existing investors. In total, Overture
has raised more than $43 million in venture capital. Contact
Shawn Ramsey (919.782.3262).
Intersouth Invests in Massachusetts BioPharma
Company
Durham-based Intersouth Partners (www.intersouth.com),
an early stage venture capital firm, was part of a venture
syndicate offering $12 million in financing to Massachusetts-based
Proteon Therapeutics, a privately held biopharmaceutical
company. The drug company is developing products to treat
renal and vascular diseases. Also participating in the round
were TVM Capital, Skyline Ventures and Prism VentureWorks.
The same investors also participated in an earlier round
of $19 million in Series A funding in March 2006. Contact
Suzanne Cantando (919.493.6640).
Aldagen Raises Additional $9 Million in Third
Round
Durham-based Aldagen (www.aldagen.com),
a biotechnology company, has raised $9 million in its third
round of venture capital financing. The company has raised
a total of $23 million in the three rounds of funding. Third
round investors include Tullis-Dickerson and CNF Investments;
existing investors include Harbert Venture Partners and
Intersouth Partners. The company is developing therapies
to treat chronic heart failure, limb ischemia and pediatric
metabolic disorders and malignancies. Contact Michelle Linn
(508.419.1555).
NanoCor Raises $3.75 Million from Medtronic
Chapel Hill-based NanoCor Therapeutics (www.nanocorthx.com),
a drug development company, has received a $3.75 million
investment from Minneapolis-based Medtronic, a medical device
company, to support NanoCor's development of a gene-therapy
treatment for heart failure. If the preclinical trials are
successful, NanoCor could receive an additional $3.75 million
from Medtronic. Contact Sheila Mikhail (919.942.0252).
SJF Invests $1.5 Million in Organic Pizza Company
Durham-based SJF Ventures (www.sjfund.com), a venture capital firm that focuses on clean tech, technology-enhanced services, and premium consumer products sectors, led a $1.5 million Series B equity round of financing in Pittsfield, N.H.-based Rustic Crust, Inc., a company which makes all-natural and organic pizza products. The company will use the funds for distribution and product development. Other investors in the round include Portland, Maine-based CEI Community Ventures and individual investors.
Bioptigen Raises $500,000 in Angel Funding
RTP-based Bioptigen (www.bioptigen.com),
a developer of technology platforms to provide non-invasive,
two- and three-dimensional imaging of the eye, has raised
$500,000 in convertible debt in an investment led by the
Greensboro-based Piedmont Angel Network Two. The technology,
developed by Joseph Izatt of Duke University, targets advanced
diagnostics and research of age-related macular degeneration
and glaucoma with tools that image both human and animal
subjects. Contact Sunita Sayeram (919.314.5500).
Hatteras Investment Partners Raising $500 Million
Fund
Raleigh-based Hatteras Investment Partners (www.hatterasinvestmentpartners.com),
an investment advisory firm that specializes in alternative
investment asset management, announced it is raising a $500
million late-stage venture capital fund. The firm was founded
in 2003 by David B. Perkins and Mark W. Yusko. Contact Robert
Brown (888.363.2324).
Echo Therapeutics Merges with Sontra Medical
Corp.
Durham-based Echo Therapeutics, Inc., a privately held transdermal
therapeutics company, and Franklin, Mass.-based Sontra Medical
Corporation, a publicly traded transdermal sciences company
have merged to form a single publicly traded company, Echo
Therapeutics, Inc. In the agreement, Sontra acquired all
of the outstanding shares of Echo common stock in exchange
for 6.25 million shares of Sontra common stock; the deal
is estimated at $14 million. The new company will have corporate
offices in Philadelphia and research and development facilities
in Durham and Franklin, Mass. Contact Patrick T. Mooney
(508.530.0329).
RTP-based ChannelAdvisor Acquires Atlanta Firm
RTP-based ChannelAdvisor (www.channeladvisor.com),
a provider of e-commerce channel management software, has
acquired Atlanta-based Marketworks, a technology and marketing
services company. The acquisition increases ChannelAdvisor’s
customer base to 5,500 customers and provides the company
with $2.5 billion in annualized gross merchandise value,
an almost $1 billion increase in gross merchandise value
from 2006. Contact Ashley Jones (919.349.4177).
Preation Acquires eWeb Designs
Durham-based Preation (www.preation.com),
a web services provider, has acquired Raleigh-based eWeb
Designs, a web design firm. Operations for Preation, founded
in 1997, will remain in Durham. Financial terms of the deal
were not disclosed.
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On the Up
Magnus Health Portal
Raleigh, N.C.
Health care is a growing concern for many Americans, especially the 80 million baby boomers expected to reach retirement age in the next 25 years. The first wave of boomers to hit that milestone will do so in 2011, and among their major concerns is proper analysis of existing health conditions and medications and cross-communication between them, their healthcare providers and their insurance company.
Lucky for those millions of boomers, researchers and venture capitalists are ensuring the medical technology and medical device industries remain the fastest growing around, thus providing more effective and accessible health care options to individuals today than to any generation before. To that effect, 2007 is shaping up to be the most successful year to date for the medical device and equipment industry. According to data collected by Pricewaterhouse Coopers (PwC), over $2 billion was invested in the industry during the first two quarters of 2007 alone, compared with a mere $801 million invested during that same timeframe five years ago. This 259% increase in investment could signal big returns as investors and researchers work to best meet the healthcare needs of America’s aging population.
One such company hoping to find success in today’s rapidly evolving healthcare information industry is Raleigh, N.C.-based Magnus Health Portal. Formed in 2005, the early stage company is addressing the need to provide access to patients’ health information through Msense™, a coordinated software platform that consolidates thousands of points of healthcare information. The system imports patient data from disparate medical information systems, Internet connected PC’s and paper records, allowing the information to be searched in a Google-style fashion. The data can then be analyzed to provide current health status and active medical recommendations, and can also be provided via real-time reports at the click of a button for health care providers. The company is managed by a team of executives including Chas Scarantino, President; William Pittman, Vice President; Charles Scarantino M.D., chairman of the board.
“I think the patient-directed health record is an important step in getting the patient involved in their healthcare,” says Dr. Charles Scarantino. “So often I see patients who are not sure why or when a certain test was done. Having the patient involved in obtaining their information gets the patient informed and proactive in their treatment.”
The Magnus mission “is to empower patients to take control of their healthcare by facilitating communication and information exchange between people and their physicians.” Later this month, the company will demo their technology and empower the minds of conference attendees at Tech 2007, the Council for Entrepreneurial Development’s (CED) premier technology conference, scheduled for October 10-11 in Chapel Hill, N.C. Magnus Health Portal is one of over 30 demo companies who will showcase their technologies in the Demo Pavilion. To learn more about Tech 2007, visit www.cednc.org/tech.
To learn more about Magnus Health Portal, visit www.magnushealthportal.com.
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New Developments
Pozen Signs Deal with AstraZeneca for $345 Million
Chapel Hill-based Pozen (www.pozen.com),
a pharmaceutical company, has received a $30 million initial
payment from AstraZeneca for the start of a Phase III program
for a fixed dose combination of the proton pump inhibitor
(PPI), esomeprazole magnesium, with the non-steroidal anti-inflammatory
drug naproxen. The two companies have agreed to amend a
previous agreement; the new terms provide Pozen with up
to $345 million for achievement of development, regulatory,
and sales milestones. Contact Fran Barsky (919.913.1044).
BDSI Signs $60 Million License Agreement with Meda
Morrisville-based BioDelivery Sciences International (BDSI) (www.bdsinternational.com), a pharmaceutical company, has signed a $60 contract with Sweden-based Meda, a pharmaceutical marketing and product development company. The agreement calls for Meda to market and distribute throughout the U.S. BDSI’s BEMA Fentanyl product, which treats pain associated with cancer. The drug is expected to launch in late 2008. Contact Bill Douglass (212.825.3210).
GlaxoSmithKline Awarded $41 Million Government
Contract for Development of Antibiotics
RTP-based GlaxoSmithKline (www.gsk.com),
a drug development company with additional company headquarters
in London and Philadelphia, was awarded a $41 million contract
from the U.S. Department of Defense’s Defense Threat Reduction
Agency to develop a new line of antibiotics to combat potential
biological threats. The drug company will identify antibiotics
that attack both the membrane and cell structures of bacteria
known as Gram negative pathogens; existing antibiotics are
not effective in penetrating the membrane, thus making the
bacteria increasingly resistant to existing treatments.
Contact Mary Anne Rhyne (919.483.2839).
Murdock Donates $35 Million to Duke University
Medical School
Durham-based Duke University Medical School (www.duke.edu/medical.html)
has received a $35 million donation from David H. Murdock,
chairman and owner of Castle & Cooke, Inc. and Dole
Food Company, Inc. The donation, the largest ever to the
School, will be used to fund research of early diagnosis
and treatment of cancer. The research will take place in
the North Carolina Research Campus and will also include
participation from the University of North Carolina system
schools and the N.C. Community College System.
Hamner Institutes Awarded $450,000 Cancer Research
Grant
RTP-based Hamner Institutes for Health and Sciences (www.thehamner.org),
a nonprofit health and medicine research organization, has
been awarded a $450,000 grant to research chemical compounds
that fight cancer. The research will be conducted over an
18-month period by Dr. Sheela Sharma of the University of
Alabama at Birmingham.
FDA Grants Approval to Alba Bioscience for Blood
Grouping Reagents
Durham-based Alba Bioscience Inc (www.albabioscience.scot.nhs.uk),
a biomanufacturing company, has received clearance from
the U.S. Food and Drug Administration (FDA) to market fifteen
monoclonal blood grouping reagents, known as ALBAclone®
Blood Grouping Reagents, to determine rare blood types,
providing better blood transfusion products to hospital
laboratories and blood donor centers. The products will
be launched in October at the American Association of Blood
Banks annual meeting in California. The company’s Durham
facility will manufacture the reagents; the company is headquartered
in Edinburgh, Scotland. Contact Noel R. Brown (919.313.2888).
Biogen Idec Partners with LigoCyte on Anti-inflammatory
Drug Development
Cambridge, Mass.-based Biogen Idec Inc. (www.biogenidec.com),
a biotechnology company with manufacturing headquarters
in Research Triangle Park, N.C., will partner with Montana-based
LigoCyte Pharmaceuticals Inc. to develop therapies for the
treatment of chronic inflammatory diseases, including those
which affect respiratory, gastrointestinal and autoimmune
systems. The agreement calls for LigoCyte to receive milestone
payments on the successful development of drug candidates,
while the companies will share in the co-development, co-promotion
and sharing of profits resulting from commercialized products.
Contact Shannon Altimari (617.914.6524).
Trana Discovery develops tRNA HTS Assay Platform
for Treatment of HIV
Cary-based Trana Discovery (www.tranadiscovery.com),
a drug discovery company, in collaboration with Birmingham,
AL-based Southern Research Institute, a basic and applied
pre-clinical drug research organization, has developed a
high throughput screening (HTS) assay for the identification
of new compounds for the treatment of HIV. The treatment
will allow pharmaceutical companies to discover new classes
of drugs to treat HIV through rapid and efficient compound
screening; the screening will identify compounds which interrupt
the lifecycle of HIV through the inhibition of transfer
RNA (tRNA). Contact Karl von Gunten (919.931.1434).
Xintek Partners with Siemens to Develop New X-ray
Technologies
RTP-based Xintek (www.xintek.com),
a University of North Carolina spin-out that develops nanotechnology-based
products for X-ray and information display, has entered
into an agreement with Siemens Medical Solutions, a medical
technology and health care supplier, to create a joint venture
company in Research Triangle Park, N.C. to develop a new
multi-pixel X-ray source technology for diagnostic imaging
applications. The technology will be used for medical imaging
and therapy, homeland security and industrial inspection,
and is expected to enable new diagnostic imaging systems
with enhanced performance and capabilities. Contact Shan
Bai (919.524.4702).
Biomanufacturing Training and Education Center
Opens on NCSU Centennial Campus
Raleigh-based North Carolina State University has opened
a state-of-the-art training center, the Golden LEAF Biomanufacturing
Training and Education Center (BTEC)(www.btec.ncsu.edu)
to provide specialized education and training in the biotechnology
industry. Touted as the world’s largest biotech education
training facility, the 82,500-square-foot center located
on the school’s Centennial Campus is expected to give North
Carolina an advantage in the rapidly growing and globally
competitive biotechnology industry as it provides hands-on
training to up to 2,000 university and community college
students and industry employees annually. Contact Mick Kulikowski (919.515.8387).
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In the Pipeline
Icagen Begins Phase I Study for Treatment of Epilepsy
RTP-based Icagen (www.icagen.com), a drug development company, has begun a Phase I study of ICA-105665, a novel small molecule compound for the treatment of epilepsy. In preclinical studies, the drug demonstrated activity in models predictive of efficacy for the treatment of partial seizures, generalized seizures and treatment-resistant seizures. Contact Richard D. Katz (919.941.5206).
GlaxoSmithKline Purchases Rights to Sell Sleep
Drug
RTP-based GlaxoSmithKline (GSK) (www.gsk.com),
a pharmaceutical company, has entered into an agreement
with Massachusetts-based Sepracor, to buy the rights to
sell Lunivia (eszopiclone) in markets outside the U.S. and
Japan. The drug is sold as Lunesta in the U.S. The agreement
calls for GSK to pay $20 million in initial payments to
Sepracor, with up to $155 million in aggregate license and
payments if milestones are met. Contact Mary Anne Rhyne
(919.483.2839).
SRC and NIST Partner to Develop Nanoelectronics
Technology
RTP-based Semiconductor Research Corporation (SRC) (www.src.org),
a university-research consortium for semiconductor technologies,
is entering into a public-private partnership with the National
Institute of Standards and Technology (NIST), a program
of the U.S. Department of Commerce, to support research
and innovation in nanoelectronics. The partnership is expected
to receive up to $18.5 million in NIST grants and industry
funds over a five year period to fund a number of high-priority
research projects identified by the Nanoelectronics Research
Initiative. Scott Stevens (512.413.9540)
Network Appliance to Build Research Data Center
RTP-based Network Appliance (www.netapp.com),
a data storage company, will begin construction on a new
$61 million, 125,000-square-foot technology research center
at its RTP campus. State and local governments have committed
close to $18 million in incentives for the company, which
considered two alternative sites before selecting the RTP
location. The company plans to use the research and development
facility to improve energy and seek ways to make data centers
more energy efficient. The facility is expected to create
50 new jobs initially, with a long term goal of adding over
600 new jobs in sales, engineering and research and development.
Contact Jodi Baumann (415.407.0013).
PRA International Relocating to Raleigh
Reston, Va.-based PRA International (www.praintl.com),
a leading clinical development organization, will relocate
its corporate headquarters to Raleigh. The move, expected
to be complete by the end of 2007, will affect 37 workers
currently working from the company’s Reston office. PRA
has offices in North America, Europe, South America, Africa,
Australia and Asia.
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Mark Your Calendar!
CED's Tech Conference
October 10-11, 2007
The Friday Center
Chapel Hill, 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