Venture
Update Vol. VIII, #3, April 2004
Done Deals
Cary - Ultimus (www.ultimus.com), a provider of business process management (BPM) and workflow automation solutions, has secured a $10 million investment from Advent International to add to the company's global team and take advantage of new growth opportunities across international markets, including North America and several emerging growth areas in Asia Pacific, Latin America, Europe and the Middle East. Contact Steve Drago (919.678.0900).
Raleigh - Relativity Technologies, Inc. (www.relativity.com), has completed a $6.5 million round of funding led by Wachovia Strategic Ventures with active participation from current investors Intel Capital Corporation, Noro-Moseley Partners and Wakefield Group as well as new investor Tall Oaks Capital Partners. Relativity will use this investment to expand sales and accelerate the development of new products for maintaining, enhancing, renovating and modernizing mainframe applications. Contact Peter Mollins (919.786.2866).
RTP - SmartPath (www.smartpathinc.com), a provider of marketing resource management (MRM) software, has been acquired for an undisclosed amount by New York-based DoubleClick, a provider of online marketing technologies. SmartPath's software platform will enable DoubleClick to expand its marketing management of traditional marketing channels, such as print and television. Contact Jeffrey Phillips (919.462.1489).
Durham - Pinpoint Networks (www.pinpoint.com), a provider of software and services for managing and delivering mobile content, has merged with Tennessee-based Power By Hand (www.powerbyhand.com), a source for handheld content, information and education. Ryan Wuerch will serve as chairman & CEO of the merged company, and Jud Bowman will serve as president & COO. The combined company has the support of institutional and strategic investors including New Enterprise Associates (NEA), Intel Capital, Massey Burch Capital, Noro-Moseley Partners, and Wakefield Group, which collectively manage more than $7 billion of capital. The merged company will be a leading provider of mobile content delivery solutions to wireless carriers, portals, handset manufacturers and retailers. Contact Lynn Vitello (919.287.7345).
RTP - Paradigm Genetics (www.paragen.com) has completed the acquisition of Pittsburgh-based TissueInformatics, a privately held developer of software for the quantitative analysis of tissue changes, for approximately $4.5 million in Paradigm stock. Paradigm officials will maintain TissueInformatics' operations in Pittsburgh. The combined organization will have about 212 employees. Paradigm Genetics is focused on the discovery and validation of genes, targets and biomarkers for product development in the pharmaceutical and agricultural industries, with an internal focus on metabolic disorders, pathway engineering and chemical genetics. Contact Melissa Matson (919.425.3725).
Cary - Data.TXT Corporation (www.timematters.com), a provider of legal practice management software for lawyers in the United States, has been acquired by LexisNexis U.S., a provider of legal, news and business information services. Data.TXT will continue to operate from Cary with the current management and staff. Financial terms of the deal were not disclosed. Data.TXT's time and billing management tools and software will enhance LexisNexis services, including legal research, electronic discovery, electronic filing and court access, client development and practice management. Contact Bob Butler (800.328.2898).
On The Up
Biopheresis Technologies LLC
Cary, NC
A Cary-based biomedical company is leading the way in the technological development of a potential cancer therapy. Biopheresis Technologies LLC has developed a patented paradigm for cancer technology, a treatment that has shown promising preliminary results against breast, colon, prostate and lung cancers.
The Biopheresis treatment removes soluble immuno-inhibitors that interfere with the human body's immune system. These immuno-inhibitors obstruct a powerful cancer-fighting agent of the immune system, tumor necrosis factor (TNF). Removing these inhibitors allows TNF and other cells to help fight cancers again.
Company officials say the treatment may also provide improved patient well being. To date, in clinical evaluation Biopheresis' therapy has been generally well tolerated by patients.
Founded in 2000, Biopheresis has three employees/full time consultants and seven part time consultants/contactors.
Santo J. Costa, the chairman of Biopheresis, says that Biopheresis has a challenging road ahead, but the future looks bright.
“A basic challenge we have is to bring the device through the regulatory approval process in Europe and the United States,” said Costa, who was formerly an executive with Quintiles as well as Glaxo. “In the next 5-10 years, we are hopeful that Biopheresis will become a recognized therapy for the treatment of certain types of cancers.”
Biopheresis has raised nearly $1 million from a non-profit cancer research foundation and from private individuals thus far.
The funds raised will go to the development of its technology and to initiate the regulatory process in the United States.
The company will be an early-stage presenter at CED's Venture 2004 conference, held April 27-28 at The Friday Center in Chapel Hill.
Biopheresis seeks to raise an additional $5-10 million. Contact Sandy Costa (919.862.4321).
New Developments
RTP - Regional business and academic leaders have launched a five-year, $5 million strategy to generate 100,000 new jobs and increase employment in all 13 counties of the Research Triangle Region. Staying on Top: Winning the Job Wars of the Future (available online at www.researchtriangleregion.org) outlines action items to nurture the growth of industry “clusters” around key technology areas such as pharmaceuticals, agricultural biotechnology, pervasive computing and informatics. Contact Ted Abernathy (919.840.7372 x14).
RTP - The Research Triangle Regional Partnership (www.researchtriangle.org) and Council for Entrepreneurial Development (www.cednc.org) recently teamed with North Carolina State Treasurer Richard Moore to promote North Carolina's innovation economy to a group of leading investors in Boston. Other speakers at the Boston event included RTRP's Charles Hayes, CED's Monica Doss, Duke University's Kristina Johnson, Inspire Pharmaceuticals' Christy Shaffer, and Wakefield Group's Steve Nelson. Over 50 Boston-based investment firms attended the luncheon, including Draper Fisher Jurvetson, Polaris Venture Partners, Prism Venture Partners and Summit Partners. Contact Tracy Harris (919.549.7500 x117).
Raleigh - Vital Source Technologies (www.vitalbook.com) has signed an exclusive three-year agreement with IBM (www.ibm.com) to preload more than 2,000 classics of western civilization on ThinkPad notebooks and ThinkCentre desktops for education customers. K-12 schools, colleges and universities can also work with IBM and Vital Source to preload textbooks and other customized content. Vital Source is presenting at CED's Venture 2004 conference. Contact Clay Dunnagan (919.755.8067).
Durham - SJF Ventures (www.sjfventures.com) has received national recognition from the Community Development Venture Capital Alliance (CDVCA). Two SJF portfolio companies, Salvage Direct and Ryla Teleservices, received national awards at CDVCA's 10th Anniversary Conference in March 2004. With offices in Durham and Philadelphia, SJF Ventures (formerly Sustainable Jobs Fund) is focused on expanding industrial technologies and business services firms. Contact Janet Cowell (919.649.4172).
In the Pipeline
RTP - AlphaVax (www.alphavax.com) has announced plans to expand its manufacturing capacity for clinical trial supplies. AlphaVax initiated the first clinical trial for its novel vaccine technology last year, and the company has additional projects that will require manufacturing support to enter clinical development in the next few years. AlphaVax plans to create two separate production suites and an additional filling suite. The company is also expanding its development and manufacturing staff to support the project load for its technology. Contact Peter Young (919.595.0400).
Winston-Salem - Kucera Pharmaceutical Company (www.kucerapharma.com) has discovered a novel antiviral compound that has confirmed activity against the causative viral agent responsible for Severe Acute Respiratory Syndrome (SARS). The company has also received a $150,000 Small Business Research Award from the North Carolina Biotechnology Center (www.ncbiotech.org) to support the company's preclinical studies. Contact Russ Read (336.723.7133).
Durham - StemCo Biomedical Inc. (www.stemcobiomedical.com) has gained FDA clearance to market its second product, Aldecount, through the 510(k) process. Aldecount is based on the company's “research use only” product, Aldefluor, which was launched last year. Aldecount works to improve the way hematopoietic stem cells are enumerated during aphaeresis and subsequent transplantation therapy. Contact Noel Brown (919.484.2571 x224).
RTP - Synthematix, Inc. (www.synthematix.com), a provider of chemistry reaction planning and knowledge management systems, has inked an agreement with Eisai Research Institute (ERI). Under the terms of the agreement, ERI will use Synthematix's ARTHUR Suite to help chemists search, mine, plan and build synthetic reactions and procedures. Synthematix's technology will improve ERI's communication within and between discovery and process research groups. Contact Tom Laundon (919.474.0742).
RTP - Norak Biosciences, Inc. (www.norakbio.com) has completed a collaborative agreement with Sumitomo Pharmaceuticals Co., Ltd. to utilize Norak's Transfluor technology for G protein-coupled receptor (GPCR) drug discovery. Under the terms of the agreement, Norak developed Transfluor cell lines expressing an orphan GPCR target of interest to Sumitomo and then screened this cell line on its high content imaging systems against a Sumitomo compound library. Contact Terry E. Willard (919.248.8000 x8804).
Durham - Regado Biosciences has signed a contract with Nebraska-based Transgenomic Inc. (www.transgenomic.com) to manufacture the two components of an antidote-controlled, regulatable anticoagulant therapy. Transgenomic will also provide a range of related services, including analytical method development, stability studies and other related formulation development activities, in support of Regado's advance toward an investigational new drug (IND) filing. Contact Doug Gooding (919.949.2990).
Durham - Merix Bioscience (www.merix.com), a company pioneering therapeutic cancer vaccines, has signed a joint licensing agreement with California-based Geron Corporation. In exchange for five million shares of Geron stock, valued at over $43 million, Merix will allow Geron the use of its platform technology for modifying dendritic cells to present one or more defined antigens in order to provoke an anti-tumor immune response. Contact Bradd Pavur (919.870.5718).
RTP - Tranzyme (www.tranzymepharma.com/en/profile.html) has expanded its strategic alliance with BD Technologies, a unit of Becton, Dickinson and Company. The collaboration is focused on the development and commercialization of novel high-throughput assays for drug discovery. Contact Vipin K. Garg (919.597.6614).
RTP - The Council for Entrepreneurial Development (www.cednc.org) has finalized the speaker and presenting company line-up for Venture 2004, scheduled for April 27-28 at The Friday Center in Chapel Hill. Confirmed featured speakers at the 21st annual conference include former Senator Bob Dole, Carlyle Group's co-founder David Rubenstein, and Johnson & Johnson Development Corp.'s President David Holvek. Venture 2004 will also feature a marquee "Fund of Funds" Manager panel with leading private equity managers from Parish Capital Advisors, Fairview Capital, Adams Street Partners and Quellos Group. In addition, CED has selected 27 NC-based companies to present at the conference. Contact Andrea Cook (919.549.7500).
Mark Your Calendar!
Venture 2004
April 27-28, 2004
The Friday Center, Chapel Hill, NC
www.cednc.org/venture
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