Venture
Update Vol VII, #4, May 2003
Done Deals
RTP - Ziptronix (www.ziptronix.com), a maker of three-dimensional integrated circuits, has raised $17.4 million in a B round of financing. Intersouth Partners and Grotech Capital Group co-led the recent investment. Research Triangle Ventures, Research Triangle Institute, MCNC Enterprise Fund, iSherpa Capital, Alliance Technology Ventures and Xilinx Corp. also contributed. Ziptronix produces “ultra-dense” integrated circuits for wireless communications, Wi-Fi and other networking applications. The company was spun off from the Research Triangle Institute in 2000. Ziptronix has raised more than $23 million in funding since its launch. Contact Beth Roach (919.459.2400).
Wilmington - TranS1 (www.trans1inc.com), an early stage company developing technology to treat lower back pain, has raised $12 million in its second round of venture capital. Advanced Technology Ventures (ATV) led the second round funding, with Delphi Ventures, Cutlass Capital and Sapient Capital also participating. Proceeds from the financing will be used to complete the development of the company's lumbar spine surgery product scheduled to enter clinical trials later this year. TranS1's technology avoids the dissection or penetration of any surrounding spinal tissue. TranS1, Inc., formerly Axiamed, was founded in 2000 by Dr. Andrew Cragg, a Minneapolis-based interventional surgeon who developed and patented the trans-sacral approach to accessing the spine for lumbar spine surgical procedures. Contact Jan Walker (910.509.3100).
Raleigh - CipherOptics (www.cipheroptics.com), a developer of information security appliances designed to protect data as it moves through a network, without sacrificing network performance and speed, has raised $9.6 million in its second round of venture capital. Kodiak Venture Partners led this latest funding for CipherOptics. Other investors included Origin Partners, Axiom Venture Partners and New Tampa Technologies. CipherOptics will use the funding to broaden its sales and marketing activities, continue to build its partner distribution network, and to expand development of its next wave of information protection products. Contact David Abels (919.960.9794 x22).
Castle Hayne - VisionAIR (www.visionair.com) has completed a $5 million preferred stock offering. A provider of public safety and criminal justice software, VisionAIR products enable law enforcement agencies to capture, store, access and analyze large amounts of data in real time, for improved decision-making. Bank of America led the funding round, with participation from Southeast Interactive Technologies, GE Capital and Covestco. Company officials said VisionAIR will use the funding to ensure that its software solutions continue to meet the data interoperability requirements of the public safety and criminal justice marketplace. Contact Laura Sexton (800.882.2108).
Raleigh - HAHT Commerce (www.haht.com), a provider of supply chain management software, has raised $4.1 million in venture capital. This round of funding brings the company's total raised since 2001 to $37 million. HAHT officials did not disclose the sources of funds, but they said that there were no new investors. Previously disclosed investors in the company include APAX Partners, Bank of America Capital Investors, CIBC, Granite Ventures, Menlo Ventures, Sippl Macdonald Ventures, and Southeast Interactive. Founded in 1995, HAHT Commerce has operations in North America, Europe, Asia/Pacific and Latin America. Contact Terry Welty (919.786.5100).
Charlotte - NuTech Solutions (www.nutechsolutions.com), a privately held provider of predictive analysis and profit optimization software, has raised $2 million from individual investors. The third round of funding, which came primarily from previous investors, brings NuTech's total funding to more than $14 million since its inception in 1999. NuTech plans to use the additional funds to continue rapid business growth. Companies using NuTech's software include General Motors, Boeing and Bank of America. Contact Valerie VanDerpoel (704.549.4480).
New Developments
RTP - Paradigm Genetics (www.paragen.com), which focuses on agricultural biotechnology, has been awarded a U.S. patent for its “gene knock-out” technology that provides methods for the rapid and systematic mutation of pathogenic fungi. This gene technology allows for the identification of antifungal and fungicide target. The patent covers Paradigm's proprietary Transposon-Arrayed Gene Knock-Out (TAG-KO®) technology, which may lead to new fungicides, human anti-fungal products and industrial products. Contact Melissa Matson (919.425.3000).
Durham - Trimeris Inc.'s (NASDAQ: TRMS, www.trimeris.com) anti-HIV drug, FUZEON, has been approved by the European Commission for use in the European Union. FUZEON was developed by Trimeris in conjunction with commercial partner Roche. The EU approval enables use of Fuzeon in all 15 member countries and represents the third regulatory approval for Fuzeon, following regulatory clearance in the U.S. and Switzerland. Roche and Trimeris Inc. expect that the European market introduction of Fuzeon will occur over the next several months on a country-specific basis. Contact Robin Fastenau (919.419.6050).
RTP - Embrex (NASDAQ: EMBX, (www.embrex.com), a developer of poultry vaccines that are delivered in the egg, has received marketing approval from the U.S. Department of Agriculture for its Newcastle disease vaccine called “Newplex.” The Newcastle disease is a contagious and fatal viral respiratory disease affecting all species of birds. Embrex's patented vaccine selects a suitable vaccine virus and combines it in an appropriate ratio with its specific antibody. Contact Ellen T. Moore (919.314.2561).
Durham - Serenex Inc. (www.serenex.com), a drug development company, has reached an agreement with GlaxoSmithKline (www.gsk.com), to incorporate its chemoproteomics technologies into selected GSK drug discovery programs. GSK and Serenex will evaluate how these technologies impact the process of identifying the best compounds to advance to drug development. The agreement provides GSK with access to two of Serenex's technologies to screen GSK compounds against thousands of protein targets simultaneously. Contact George Young (919.281.6001).
Durham - Ercole Biotech, Inc. (www.ercolebiotech.com), and California-based Isis Pharmaceuticals, Inc. (NASDAQ: ISIS; www.isispharm.com) have initiated a multi-year collaboration to discover antisense drugs that regulate alternative RNA splicing. Through this collaboration, the companies will focus on alternative splicing and “leverage Isis' antisense technology to expand the potential of antisense drugs in treating disease,” according to company reports. Financial terms of the deal were not disclosed. Under other terms of the deal, Isis and Ercole will engage in a drug discovery collaboration and cross-license splicing-related intellectual property. Ercole will also receive a license to certain Isis antisense chemistry patents, company officials said. Contact Thanos Maroglou (919.949.2647).
RTP - The Aurora Funds (www.aurorafunds.com), an early stage venture capital firm, has named Greg Bohlen as the firm's new chief financial officer and has also named Tom McMurray as a special ventures partner. Bohlen, who spent the past two years as director of Private Equity Coverage Group at UBS Warburg Investment Banking, brings more than 20 years of financial and investment experience to Aurora. McMurray, who will lead Aurora's efforts to identify promising new investment opportunities in the Washington, DC area, formerly served as general partner at Silicon Valley-based Sequoia Capital. In addition to hiring Bohlen and McMurray, Aurora promoted two members of its team. Doug Gooding has moved from associate to principal under life science investments. Bonnie McCullough, who had been controller, has been named vice president of finance. Contact Jeff Clark (919.484.0400).
Durham - Dennis Dougherty, general partner with Intersouth Partners (www.intersouth.com), has been elected to the board of directors of the National Venture Capital Association (NVCA). The NVCA (www.nvca.org) represents 470 venture capital and private equity organizations across the United States. Dougherty has been a part of the Southeast's venture capital community for nearly 20 years. He is a founding member of the Council for Entrepreneurial Development, and he is also the founding general partner of Intersouth Partners, one of the largest early-stage venture capital funds in the Southeast. Contact Andrea Cook (919.493.6640 x108).
RTP - The Council for Entrepreneurial Development (www.cednc.org) along with the North Carolina Biotechnology Center, the North Carolina Biosciences Organization (NCBIO) and the Biotechnology Industry Organization (BIO), hosted the 12th annual Biotech conference May 21 in the RTP with over 800 people participating. The event highlighted the future of North Carolina's biotech industry and included eight interactive panels discussing biotechnology trends such as DNA research and creative financing. During lunch, Durham-based Trimeris, a biotech company spun out of research at Duke University, was recognized for its anti-HIV drug FUZEON, which recently received FDA approval. In addition, Biotech 2003 featured keynote remarks from industry and government leaders. Mary Tanner, senior managing director of the Investment Banking/Healthcare Group of Bear & Stearns Co., Inc, discussed biotech and pharmaceutical stock market trends. Steve Burrill, CEO and founder of San Francisco-based Burrill & Company, highlighted investment trends guiding future activity in biotechnology. North Carolina Governor Mike Easley, who commemorated the day's events by calling May 21 “Biotech Day,” said he would work to ensure funding for biomanufacturing job training programs in the state. Contact Corey Waters (919.549.7500 x125). www.cednc.org/biotech/2003.
On The Up
Regado Biosciences
RTP, NC
Adverse drug reactions are the fifth leading cause of death in the Unites States, and over 2 million hospitalized patients have severe adverse reactions to medication annually even when the drugs are appropriately administered. Regado Biosciences, an RTP-based drug development company, is creating the first generation of regulatable therapeutics to help reverse this trend.
Regado Biosciences, an early-stage presenting company at CED's Venture 2003 conference in April, was founded in late 2001 using technology transferred from Duke University Medical Center. Its proprietary technology allows Regado to generate specific antidotes for each new drug it develops.
“Our technology generates matched drug-antidote pairs, and thus our products will enable physicians to provide safer and more effective treatment to patients in the acute care setting,” said Dr. Chris Rusconi, vice president of research and a founder of the company.
The initial focus of the company is on developing antidote-controlled drugs that prevent or eliminate blood clots also known as “antithrombotics.” Regado's regulatable drugs will initially address the injectable sector of this market that posted sales of over $3 billion in 2001 and is rapidly growing. Injectable antithrombotics have a broad range of applications including cardiovascular and vascular surgery, angioplasty, orthopedic surgery, acute myocardial infarction, stroke, and sepsis.
The Regado platform is broadly applicable to other areas. As Regado grows, officials said they plan to expand the company's targeted applications to take advantage of other market opportunities. Antidote-controlled neuromuscular blocking agents and applications to cell therapy are two future applications.
Based on its technology, target markets, drug potential and management team, Regado already has drawn seed funding from The Aurora Funds. Aurora also has committed to lead Regado's first round of financing.
Contact Chris Rusconi (919.313.0150).
Mark Your Calendar!
Entrepreneurial Excellence Awards & Family Fun Festival
August 8, 2003
RBC Center
Raleigh, NC
www.cednc.org/awards/
Infotech 2003 Conference
October 27, 2003
Sheraton Imperial Hotel
RTP, NC
www.cednc.org/infotech
For more information, visit the CED Web site (www.cednc.org) or call 919-549-7500.
Venture Update is published by the Council for Entrepreneurial Development (CED) an entrepreneurial support organization located in N.C.
Lisa Rowe-Ralls, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
FAX: 919-549-7405
Email: news@cednc.org