Venture
Update Vol. VII, #7, September 2003
Done Deals
Pittsboro - Biolex (www.biolex.com) has completed a $24.4 million round of venture financing. Durham's Intersouth Partners and Quaker BioVentures of Philadelphia, PA, led the financing. The round also included new investors Johnson & Johnson Development Corporation, Mitsui & Co. Venture Partners, The Dow Chemical Company, Dogwood Equity, and Trelys Venture Partners. All existing investors participated, including The Wakefield Group, Kitty Hawk Capital, Franklin Street Partners, Tall Oaks Capital, and Academy Centennial Fund. The investment will be used to enhance Biolex's Lemna Expression (LEX) System for developing therapeutic proteins and to advance new protein drug candidates into development. Contact Jan Turek (919.542.9901).
Durham - OncoGenome Sciences (www.oncomethylome.com) has completed a $16 million funding round and is changing its name to OncoMethylome Sciences. The company is backed by ING Belgium, Polytechnos Venture Partners, Germany, Life Science Partners Management (a Dutch venture capital fund) and three Belgian Venture funds: Technowal, Meusinvest and S.I.B.L. “OncoMethylome” explains the company's focus on cancer detection using its technology called hyper-methylation that accurately detects cancer at early stages of the disease. The company's laboratory headquarters are in Belgium, and the company's U.S. offices are in Durham. Contact Joseph Bigley (919.593.3152).
Raleigh - LipoScience (www.liposcience.com), a developer of medical tests that identify risks for heart disease, has raised $15 million in its fifth round of venture capital. Investors in the Series E round include Three Arch Partners, U.S. Bancorp Piper Jaffray Ventures, GE Capital Equity Investments, A. M. Pappas & Associates and INVESCO Private Capital. Founded in 1994, LipoScience launched its main technology product in 1999 that analyzes patients' lipoprotein numbers using a process called "nuclear magnetic resonance spectroscopy." The company also works with healthcare organizations such as the Centers for Disease Control and Prevention, the National Institutes of Health and the Mayo Clinic on research initiatives. Contact Michelle Turenne (919.256.1306).
RTP - BioStratum (www.biostratum.com), a privately held developer of diabetes treatments, has raised $9.5 million in convertible bridge financing. Investors in this round include HealthCap, BankInvest, Liftaeknisjodurinn and Equity Resources Group. BioStratum has also named a new CEO, Robert Schotzinger, who joined BioStratum in November 2000 as its chief medical officer. In addition to its latest funding, BioStratum officials said they also expect to raise an undisclosed amount of additional funds before the end of September. The company's lead drug candidate, which is in Phase II clinical trials, was recently granted "fast track" status by the FDA. Contact Mark Turner (919.433.1000).
Cary - Engineous Software (www.engineous.com), which provides product design software, has closed on a $5.8 million fourth round of venture capital. Baltimore-based QuestMark Partners led the investment, with other investors including GE Investments, Noro-Moseley Partners and Idanta Partners. Founded seven years ago, Engineous now has 77 employees and has raised a total of $25 million. Engineous enables engineers to solve simulation design problems using a "software robot," which integrates existing design software, evaluates design alternatives at a faster rate and optimizes final product designs. Contact Marijo Mencini (919.677.6700 x277).
On The Up
Kucera Pharmaceutical Co.
Winston-Salem, NC
Since spinning out from area universities in June 2001, Kucera Pharmaceutical Co. has gained recognition and reached significant milestones in several treatment areas. The company, which was an early stage presenter at CED's Venture 2003 conference in April, has put together both novel technology and an experienced management team.
Kucera (www.kucerapharma.com), based in Winston-Salem, is developing patented small molecules capable of acting as novel anti-viral therapies. The company, which spin-off of Wake Forest University Health Sciences and the School of Pharmacy at UNC-Chapel Hill, is also working with anti-cancer agents.
Russ Read, the company's CEO, said Kucera's leading molecule in the development pipeline is called KPC-2, a promising anti-HIV treatment with a unique mechanism of action. In June 2003 Kucera received a Small Business Innovation Research (SBIR) Grant to continue research and development of KPC-2. The first phase of the grant is worth $100,000.
Also driving the company forward is an experienced management team. Read has more than 25 years of experience in pharmaceuticals. Company co-founder Dr. Louis Kucera, a professor of microbiology and immunology at Wake Forest University, has more than 30 years experience in anti-viral research. And Dr. Ronald Fleming, another co-founder, has 14 years in experimental therapeutics and drug development.
Read said Kucera has raised $2.6 million thus far through seed funding and a series A round of funding. He said Kucera is now seeking additional funding ranging from $6 million to $11 million get the company into clinical trials.
“Kucera is delivering a product profile in its target market based on future market needs,” Read said. “We are very proud of our scientists and the endeavors of the greater Kucera team to do our part in moving toward improved treatments against drug-resistant HIV and other viral illnesses.”
Contact Russ Read (336.723.7133).
New Developments
Rocky Mount - The Golden LEAF Foundation (www.goldenleaf.org) has agreed to commit up to $60 million for a new employee-training program for biomanufacturing, pharmaceutical and other biotechnology-related industries in North Carolina. Area biotech and pharmaceutical companies will supply an additional $4.5 million for the biotech training initiative. The project includes expanded community college training programs, a central training facility at N.C. State University and educational programs for biotechnology related life-science disciplines at North Carolina Central University. The new training program has been a top priority for the North Carolina Biosciences Organization (NCBIO) and its Biotech Manufacturers membership forum since early 2002, as they've worked closely with representatives of the North Carolina Community College System and the University of North Carolina system to develop the program. Contact NCBIO's Sam Taylor (919.212.1833).
Chapel Hill - The North Carolina Small Business and Technology Development Center (www.sbtdc.org) announced that North Carolina jumped 18 spots to fourth in the nation for the amount of Small Business Technology Transfer (STTR) awards the state received in 2002, according to the U.S. Small Business Administration. Small businesses that receive federal STTR funding are required to incorporate a university or nonprofit institution in their proposal and work plan. During the 2002 fiscal year in North Carolina, the STTR program provided $1.56 million for 13 Phase I projects and $3.21 million for five Phase II projects - a total of $4.77 million in tech transfer awards for the state. California, Massachusetts and Virginia were the only states ranked ahead of North Carolina. Contact John Ujvari (919.962.8297).
Winston-Salem - Wake Forest University Health Sciences (www.wfubmc.edu) has established a new company to assist seven universities in the University of North Carolina (UNC) system with technology commercialization. The new company, Seed Stage Associates LLC, is a wholly owned for-profit subsidiary of Wake Forest University Health Sciences. The firm will serve Winston-Salem State University, the N.C. School of the Arts, UNC Greensboro, UNC Asheville, N.C. A&T State University, Appalachian State University and Western Carolina University. Contact Robert Conn (336.716.4587).
RTP - Biogen (www.biogen.com) announced that its RTP-based manufacturing plant has obtained U.S. Food and Drug Administration approval for the commercial production of a drug that fights skin problems. The $173 million large-scale manufacturing plant will produce Amevive, which is intended to treat chronic plaque psoriasis, a long-lasting ailment that produces raised patches of redness and scaling on the skin. Biogen broke ground on the 250,000-square-foot facility in 1999 and completed construction ahead of schedule. Contact Christina Dillon (617.679.2812).
Durham - Intersouth Partners (www.intersouth.com), an early-stage venture capital firm, has named Donald Rainey as a full-time partner. Based in Reston, Va., Rainey has served as a venture partner with Intersouth for over three years. Rainey also serves on the boards of Defywire, Artifact and Covega. In 1998, Rainey founded Total SumParts, a firm that offers staffing to organizations in need of technical professionals on demand. Prior to founding Total SumParts, Rainey was President of The Attitude Network, an Internet start-up company subsequently sold to The Globe.com. Contact Andrea Cook (919493.6640).
In the Pipeline
Durham - Inspire Pharmaceuticals (www.inspirepharm.com) received positive results from a Phase IIIb study of diquafosol for the treatment of dry eye. The four-week, placebo-controlled study included assessments from both a conventional environmental component and an experimental control chamber designed to exacerbate dry eye. Inspire submitted a New Drug Application for diquafosol in late June 2003, and the FDA granted priority review for the dry eye drug in late July 2003. Contact Mary Bennett (919.941.9777 x245).
RTP - Incara Pharmaceuticals (www.incara.com) has received an $850,000 Small Business Innovative Research (SBIR) Grant from the National Cancer Institute, a division of the National Institutes of Health (NIH). The National Cancer Institute awarded the two-phase grant for Incara to study the antitumor and radiation-protective effects of Incara's catalytic antioxidants. Both phases of the grant will be conducted through a collaboration between Incara and the Department of Radiation Oncology at Duke University Medical Center. The two-phase grant includes $100,000 up front, followed by the remaining $750,000 over the next two years. Phase II of the grant will be contingently approved by the NIH whenever Incara meets specific Phase I objectives. Contact W. Bennett Love (919.558.1907).
Durham - Ribonomcs (www.ribonomics.com) has received a $420,000 grant from the U.S. Department of Defense to hunt for genetic variations in breast cancer tissue that may help find new drugs to treat it. The grant was funded through the Breast Cancer Research Program of the U.S. Army Medical Research and Materiel Command. Ribonomics will use the funding to research variations in breast cancer tissue to identify and develop new targets for therapy. Contact Chris Kelly (919.544.1023).
RTP - Tranzyme Inc. (www.tranzyme.com), a drug discovery company focused on diseases of the neurosensory system, has received a new patent related to the company's gene delivery technology, TranzVector. The U.S. patent provides intellectual property for the packaging of lentiviral and retroviral gene transfer vectors. In June 2003 Tranzyme also received a $1 million equity investment from Tokyo-based Shin Nippon Biomedical Laboratories Group. Tranzyme, based in Alabama, has a laboratory in BD Technologies' incubator in the RTP. Contact Vipin K. Garg (919.597.6614).
RTP - United Therapeutics Corp. (www.unitedtherapeutics.com) has filed an investigational new drug (IND) application with FDA for the development of Remodulin. United Therapeutic's drug is delivered intravenously for the treatment of pulmonary hypertension, a condition in which the blood pressure in the lung arteries is abnormally high. The company, based in Maryland, employs about 25 people in the RTP. Contact Andrew Fisher (301.608.9292).
Mark Your Calendar!
Capital Connection Quarterly Luncheon
September 10, 2003
RTP, NC
www.cednc.org
InfoTech 2003 Conference
October 27, 2003
RTP, NC
www.cednc.org/infotech
SEBIO 2003 Conference
November 10 & 11, 2003
Pinehurst, NC
www.sebio.org
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 the Research Triangle Park, 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