Venture Update Vol. IX, #3, March 2005
Done Deals
RTP - Icagen Inc. (NASDAQ: ICGN, www.icagen.com) priced its initial public offering of 5 million shares of common stock in early February. Icagen's IPO is the first for a Triangle area company since September 2002. The managing underwriters of the offering were J.P. Morgan Securities Inc. and UBS Securities LLC, acting as joint book-running managers, and CIBC World Capital Markets Corp. Icagen, Inc. is a biopharmaceutical company focused on orally-administered small molecule drugs that modulate ion channel targets. Contact Richard Katz (919.941.5206).
Raleigh - Art.com (www.art.com), an online retailer of art, is in the process of finalizing a $30 million Series A round led by Polaris Venture Partners of Massachusetts, with contribution support from Raleigh-based Southern Capitol Ventures. The company will use the funds to expand operations and development. Contact Melissa Miller (919.831.0015 x2171).
Morrisville - LVL7 Systems, Inc. (www.lvl7.com), a provider of production-ready networking software to communication system manufacturers, has raised $21 million to expand its software portfolio and growing customer base of top-tier original equipment manufacturers. Leading the oversubscribed Series C financing was Silicon Valley-based venture capital firm USVP, with participation from Lighthouse Capital Partners and LVL7's previous investors: The Carlyle Group, Gabriel Venture Partners, H.I.G. Ventures, and Research Triangle Ventures. Contact Jerry Kendall (919.865.2788).
Raleigh - Voyager Pharmaceutical Corporation (www.voyagerpharma.com), a biopharmaceutical company focused on diseases of aging and development, has raised $16 million to fund ongoing clinical trials of its drug candidate for Alzheimer's disease and to develop its drug candidate pipeline. The offering was purchased by non-institutional investors, with over 90% acquired by current shareholders. With this round, Voyager has now raised over $40 million from its shareholder base. Contact Mike Giannini (919.846.4880).
Cary - Arsenal Digital Solutions (www.arsenaldigital.com), a provider of data storage management services, has raised $15 million in debt from Wells Fargo Foothill. Arsenal will use the funds to drive growth in 2005. The company, which has raised more than $101 million in equity and debt funding since its founding in 1998, recently recorded its 15th consecutive quarter of double digit compounded annual growth rate. Contact Steve Siegel (919.466.6707).
RTP - Synthematix, Inc. (www.synthematix.com), a provider of software solutions for chemists, has been acquired by California-based Symyx Technologies, Inc. (www.symyx.com) for approximately $13 million. The deal is based on Synthmatix's current revenue outlook, plus an addition potential earn out of up to $4 million over a one year period based on achievement of incremental revenue targets. Synthematix is supported by a broad base of investors, including Catalysta Ventures and Southern Capitol Ventures of Raleigh. Contact Tom Laundon (919.474.0742 x105).
RTP - Nextreme Thermal Solutions (www.NextremeThermal.com), a spin-off of independent nonprofit research organization RTI International, has raised $8 million in Series A financing from SpaceVest, The Aurora Funds, Harris & Harris Group, and RTI International. The company, which is developing the next generation of thermoelectric materials and devices, will use the funds to develop thermoelectric devices to address acute thermal management problems in the semiconductor industry and to further develop the application base, including power generation and optical communication. Contact Christa Miller (919.870.5718).
On The Up
Triad Semiconductor, Inc.
Winston-Salem, NC
Since its inception in 2002, Winston-Salem's Triad Semiconductor, Inc. (www.triadsemi.com) has focused on revolutionizing the field of integrated circuits.
A spin-off of Wake Forest University's incubator program, Triad Semiconductor is a fabless semiconductor company that manufactures integrated circuit (IC) chips to process analog sensor signals and perform communications functions for wired or wireless networks.
The company offers standard products and ASICs developed using proprietary mixed-signal structured array (MSSA) technology, a new type of integrated circuit design and manufacturing platform that enables mixed-signal ASICs to be developed with lower cost in less time as compared to traditional standard cell and full custom methodologies.
This new IC design requires a single manufacturing step to configure an array of primitive analog and digital circuit elements into an application specific integrated circuit. ASIC development costs are reduced, as well reduced time to market for new IC designs.
Currently, Triad Semiconductor's technologies are used in such areas as medical diagnostic and treatment equipment, biomedical research instrumentation, aircraft structural health monitoring, data logging and telemetry, and sensor systems and networks.
Through a partnership with N.C. A&T State University, Triad Semiconductor secured a $146,000 contract with the U.S. Air Force to create semiconductors that detect tiny cracks in the wings of jets. In addition, the company is exploring medical-device opportunities through partnerships with Wake Forest and Virginia Tech universities.
“It is a long road to go from having an idea to actually creating a product,” said president and chief executive officer Dan Wrappe. “The reason we have been so successful is because our technology is innovative, and we addressed the three major downfalls in the semiconductor industry. We reduced the time to market, lowered the development cost and reduced the product volume per design.”
Triad Semiconductor was recently selected to present at CED's 22nd annual Venture Conference in Pinehurst, NC, in April 2005. Contact Dan Wrappe (336.721.9450).
New Developments
Chapel Hill - UNC-Chapel Hill (www.unc.edu) and Quintiles Inc. (www.quintiles.com) have established a clinical research alliance to give more patients and investigators access to clinical research and improve efficiency in the clinical trial process. As part of the alliance, UNC will establish a clinical research unit that will provide centralized support for clinical research at the university, and Quintiles will provide Good Clinical Practice training for staff at the clinical research unit. To help establish the clinical trial unit, Quintiles is providing a $600,000 research grant over two years to UNC. Contact Greg Connors (919.998.2000).
Asheville - AdvantageWest (www.awnc.org), Buncombe County and AB Tech are partnering to create a new wet lab on the campus of AB Tech Enka to attract high-growth businesses in the life sciences industries to western North Carolina. The lab will be occupied initially by Asheville-based Genesis Molecular Discovery, a startup focused on providing chemical and molecular information and services to the pharmaceutical industry. Genesis Molecular is a client of AdvantageWest's Blue Ridge Entrepreneurial Council and Blue Ridge Angel Investors Network. Contact Dale Carroll (828.687.7234).
Cary - Covelight Systems (www.covelight.com), a provider of products that combat fraud, misuse and abuse by authenticated web-application users, has named Silicon Valley veteran Spencer Snedecor as the company's new CEO. With over 25 years experience as a technology business executive, Snedecor comes to Covelight from security encryption software vendor, PGP Corporation of Palo Alto, CA, where he served as a founding executive and vice president of sales. Prior to joining PGP Corporation, Snedecor also held executive positions with Network Associates and Symantec. Contact Jeanie Parker (919.677.9680).
In the Pipeline
High Point - TransTech Pharma, Inc. (www.ttpharma.com) and New York-based SIGA Technologies, Inc. (NASDAQ: SIGA, www.siga.com) have received a $2.7 million challenge grant from the National Institutes of Health (NIH) to support the development of protease inhibitors to treat orthopoxvirus infections, such as smallpox and monkeypox. Contact Adnan Mjalli (336.841.0300 x101).
Durham - Argos Therapeutics (www.argostherapeutics.com) has received a $1 million grant from the Alliance for Lupus Research for the development of a therapeutic antibody product for systemic lupus erythematosis. Research has found evidence that a protein called interferon-alpha contributes to immune system abnormalities in adults and children with lupus - an autoimmune disease in which the immune system attacks the body's own tissues and organs. Contact Bradd Pavur (919.870.5718).
RTP - Qualyst (www.qualyst.com) has received a two-year, $100,000 funding grant from the North Carolina Biotechnology Center and the Kenan Institute. The company, spun out of UNC-Chapel Hill's School of Pharmacy in 2001, will use the grant money to fund Dr. Hongbin Wang's research of high throughput mechanisms to predict drug-drug interactions. Contact Ian Mehr (919.313.6507).
RTP - Kucera Pharmaceutical Company (www.kucerapharma.com) has received a $100,000 SBIR grant from the National Institutes of Health (NIH) to develop novel compounds for the treatment of respiratory syncytial virus - a common cause of bronchiolitis and pneumonia in babies. Kucera, which spun out from research developed at the Wake Forest University School of Medicine and the UNC-Chapel Hill in 2001, has developed a platform technology that enables the conjugation of small molecules and other drugs to tackle viral diseases. Contact Brad Walters (919.313.6636).
RTP - NOBEX Corporation (www.nobexcorp.com) has received two new U.S. patents for its polyethylene glycol (PEG) and related “micro-alkylPEGylation” technology. The two patients will allow and enhance the delivery of both peptide-based and small organic molecules by oral delivery but also by injection, pulmonary and transdermal delivery. Contact Nnochiri Ekwuribe (919.474.0507).
Pittsboro - Biolex, Inc. (www.biolex.com) has partnered with European company OctoPlus to co-develop a controlled release formulation of recombinant human alfa interferon - a protein used to treat infectious diseases, such as Hepatitis C and B, and certain cancers. The co-developed product, called Locteron, combines OctoPlus' proprietary biodegradable PolyActive drug delivery technology with Biolex' BLX-883, a recombinant alfa interferon produced in its proprietary LEX System. Contact Jan Turek (919.542.9901).
RTP - The Council for Entrepreneurial Development (www.cednc.org) has selected the final round of presenting companies for Venture 2005. CED's 22nd annual Venture conference, set for April 26-27, 2005, at Pinehurst Resort in Pinehurst, NC, will feature 33 presenting companies from across North Carolina. The final round selections include RTP-based Affinergy, Inc., RTP-based Amphora Discovery, Cary-based Arsenal Digital Solutions, Raleigh-based CivaTech Corporation, Cary-based Covelight Systems, Inc., Morrisville-based Gentris Corporation, Raleigh-based HexaTech, Inc., Cary-based Instancy, Inc., Morrisville-based LVL7 Systems, Inc., Wilmington-based Merrion Pharmaceuticals, Inc., RTP-based Mi-Co, Durham-based Motricity, Inc., Asheville-based Navigational Sciences, Inc., RTP-based Qualyst, Inc., Yadkinville-based Salzburg Therapeutics, Morrisville-based TapRoot Systems, Inc., Charlotte-based TelecommUSA, Raleigh-based TxFs, Inc., RTP-based WiMAX Systems, Inc. and Raleigh-based Zenph Studios, Inc. Thirteen other companies were chosen during the first two selection rounds in December 2004 and January 2005. Contact Andrea Cook (919.549.7500).
Mark Your Calendar!
CED's Venture 2005 Conference
April 26-27, 2005
Pinehurst Resort
Pinehurst, NC
www.cednc.org/venture
Biotech 2005 Conference
May 24-25, 2005
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/conferences/biotech/2005
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