Venture Update Vol. X, #8, August 2006
Done Deals
Durham – Parata Systems (www.parata.com), a provider of pharmaceutical technology, has completed its acquisition of McKesson’s Automated Prescription Systems, previously announced in May. Parata Systems will also expand its corporate headquarters in Durham. The company’s acquisition will bring a projected 130 jobs over the next three years, part of a total $15 million investment over five years. Contact Nanette Kirsch (919.433.4363)
Charlotte – Pelican Life Sciences (www.pelicanls.com) has completed the acquisitions of Continental Laboratory Products, Inc. (CLP), PGC Scientifics Corporation (PGC) and Kemp Biotechnologies Inc. (Kemp). Pelican Life Sciences is backed by $100 million in equity capital commitments through Grotech Capital Group and Ferrer Freeman & Company, LLC. Contact Gina Curcuru (704.875.0044).
RTP – Cisco Systems (www.cisco.com), a California-based company which employs approximately 2,700 people at its RTP office, has signed a definitive agreement to acquire the privately-held Meetinghouse Data Communications of Portsmouth, NH. Under the terms of the agreement, Cisco will pay approximately $43.7 million in cash and assumed options for Meetinghouse. Contact Laura Johnston (408.525.3582).
Raleigh – VitalSource Technologies (www.vitalsource.com), a provider of digital content delivery solutions in education and professional learning environments, has been acquired by Nashville-based Ingram Industries, Inc. for an undisclosed amount. VitalSource provides the market’s only turnkey solution for portable digital content. Contact Andrea Koller (919.755.8100).
Durham – Motricity (www.motricity.com), a global provider of mobile marketplace management solutions, has acquired GoldPocket Wireless. for and undisclosed amount. GoldPocket extends Motricity’s mobile content distribution capabilities and enhances Motricity’s “Fuel” platform with a distribution gateway that connects more than 200 million subscribers. Contact Les Hamashima (919.287.7345).
Charlotte – Digital Optics Corporation (www.doc.com), a provider of miniaturization technologies for the electronics industry, has been acquired by California-based Tessera. Under the terms of the agreement, Tessera will pay approximately $59.5 million in cash for all outstanding Digital Optics equity. This transaction is subject to various standard closing conditions, and is expected to close in the third quarter of 2006. Contact Joe DeBartolo (704.887.3100)
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New Developments
Durham – Affinergy (www.affinergy.com), a Duke University spinout with a proprietary site-specific biological delivery system, has hired key scientific leadership staff to support partner projects and execute its growing grant-funded research programs. Affinergy has also purchased the physical assets of a biotech company and signed a 5 year lease for a facility with advanced scientific infrastructure consisting of approximately 20,000 square feet. Contact Peyton Anderson (919.345.4732).
RTP – NC IDEA, a provider of grants and traditional venture capital to early-stage technology companies based in North Carolina, has awarded $225,000 in grants to seven early-stage companies located throughout North Carolina - CardioVascular Resonances, Illuminus, InsituTec, ZumaTek, DeltaSphere, ImagineOptix, and TransLoc. NC IDEA grants are targeted to help companies prepare for equity funding, providing a boost to create new North Carolina companies and jobs. Contact W. Merrette Moore (919.941.5600).
Holly Springs – Novartis (www.novartis.com), a global pharmaceutical company, announced plans to build the first cell culture-derived influenza vaccines manufacturing plant in the United States at a site in Holly Springs, North Carolina, with construction expected to begin in 2007. Novartis also announced the first European Union submission of a cell culture-derived influenza vaccine, also commonly referred to as "flu cell culture influenza vaccines." Contact Eric Althoff (510.923.6500).
Raleigh – Agri-Ethanol Products (AEP) (www.aepnc.com), an energy development group, has completed a financing agreement with an unnamed international company. With this agreement, AEP now has financing in place for development of up to 20 renewable energy facilities within the East Coast Region, from the Gulf states to New York. Contact Terry Ruse (919.872.6237).
Charlotte – Scientigo (www.scientigo.com), a developer of search engine technology, and Infocall S.p.A. have developed a strategic partnership to collaborate on marketing opportunities in Europe. This new partnership will permit Scientigo to introduce its industry leading local/mobile search and enhanced directory assistance platform, known as “FIND1ST”, to the European market. Contact Greg Cox (407.585.1080).
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On The Up
ZinkKat
Cary, NC
In the ongoing quest for streamlined wireless devices, ZinkKat, a Cary-based startup, is proving itself as an innovator in the integration of communication, entertainment and web-based channels.
Since its inception in January 2004, ZinkKat has been designing, building and distributing integrated, wireless terminals that enable seamless migration among various web, entertainment and communications channels.
ZinkKat is operated by a two-man team made up of its founders David Dubbs, vice president of business development, who works from their Silicon Valley office; and Trey Weaver, chief technology officer, who left a previous CTO post at a consumer products company to start ZinkKat.
Its first product, Chili, which was recently unveiled at the Demo 2006 conference in Phoenix, AZ, targets teenage consumers. It seeks to address the problem of multitasking around three disconnected platforms in the home – the wired telephone, portable music player and computer.
In essence, Chili is wearable cordless phone, MP3 player and Podcast and Web stream receiver. It is equipped with a Bluetooth wireless base station that plugs into the family computer and phone line. It can operate up to 350 feet away from the base station.
Working product prototypes are currently being reviewed by prospective distributors after Chili generated investment interest at Demo 2006. Initial sales of Chili are projected for the Christmas 2006 season.
ZinkKat, which presented at CED’s Venture 2006 Conference, has filed patents for RF Radio Link and dual purpose Radio Link. Two additional patents will be filed for Voice-DNS and industrial design of Chili.
ZinkKat seeks to provide turnkey products that are distributed via branded partners while maintaining a limited overhead structure.
ZinkKat outsources research and development as well as manufacturing operations but maintains all IP and oversees the design and execution of its product line.
To date, ZinkKat has raised $400,000 in equity-based financing to complete product prototyping and is currently in the process of raising an additional $1.5 million to complete the funding of research and development, an in-store trial and a production ramp for Chili.
“ZinkKat is just plain cool… a fashion accessory for the 'hip-tech’ generation,” said Chris Shipley, Executive Producer of DEMO 2006. “Designed to enter the market at a very affordable price, and with private-label deals in the pipeline, ZinkKat is set up for a home run.” Contact Trey Weaver (919.345.0597).
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In the Pipeline
RTP – Tranzyme Pharma (www.tranzyme.com), a biopharmaceutical company, has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) to protect key aspects of the Company’s core drug-design platform, Macrocyclic Template Chemistry (MATCH™). Tranzyme Pharma has successfully leveraged MATCH to build a diverse library of small, high-potency molecules. Contact Vipin K. Garg, Ph.D. (919.313.4764).
Durham – Inspire Pharmaceuticals (www.inspirepharm.com), has started a Phase 3 clinical trial to evaluate its drug candidate, denufosol tetrasodium Inhalation Solution, in patients with mild cystic fibrosis (CF) lung disease.The initial Phase 3 clinical trial, which will be referred to as TIGER-1 (Transport of Ions to Generate Epithelial Rehydration), is designed to include a 24-week efficacy treatment period, followed by a 24-week safety extension period. Contact Dan Budwick (212.477.9007).
RTP – Quintiles Transnational (www.quintiles.com/default.htm), a global pharmaceutical services company, has created a Strategic Biostatistics Unit to help customers cut the time and reduce the costs of drug development through the "adaptive design" of clinical trials and other statistical approaches. A study design is called "adaptive" if it allows modification of an essential design feature (e.g., sample size). Contact Dick Jones (919.998.209).
Morrisville – TriE Medical (www.triemedical.com), a privately held medical device company, has developed a shake/fire system for the testing of metered dose inhalers. SFSystem is completely programmable, which allows the user to create run recipes based on difference shake distances, dwell times, and firing positions. Contact Grayson Bell (919.388.3360).
Durham – The Semiconductor Research Corporation (SRC) (www.src.org),a global university research management group, is teaming up with five universities to create a new research center designed. The SRC, its industry partners and the universities are pooling $7 million to fund the effort over the next three years. Research will focus on stretching the performance of silicon in complimentary metal oxide semiconductors, or CMOS. Contact Scott Stevens (512.413.9540).
RTP – BioMachines (www.bio-machines.com), has started a new services division, Applied Proteomics Services, through an agreement with the University of Massachusetts Medical School's (UMMS) Proteomic Fractionation Group (PFG). The group provides diverse proteomic sample preparation, fractionation and mass spectrometry services for state-of-the-art analysis. Applied Proteomics Services will utilize its fully integrated technology platform to provide real advantages in data quality, throughput and the ability to review, interpret and troubleshoot experimental outcomes. Contact Julie Sheldon (919.883.0012).
Raleigh – Hydrosize Technologies (www.hydrosize.com), has received a Phase II SBIR award ($750,000 for 2 years) from the Naval Air Systems Command (NAVAIR) with technical management provided by the Air Force Research Laboratory (AFRL/ML) to continue the development of a solvent-free, high temperature sizing. Contact Heather Brink (919.873.0970)
Durham – Serenex, Inc. (www.serenex.com), a drug discovery and development company, has initiated a Phase 2 clinical trial of its lead product, SNX-1012. The compound will be tested in patients with certain solid tumors who are treated with chemotherapy and develop oral mucositis. The study is expected to be completed in early 2007. Contact Ian Howes (919.281.6001).
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Mark Your Calendar!
CED’s Tech 2006
October 11, 2006
McKimmon Center
Raleigh, NC
For more information, 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.
Robert Albright, editor
P.O. Box 13353, RTP, NC 27709
Phone: 919-549-7500
FAX: 919-549-7405
email: news@cednc.org