Venture Update Vol. X, #5, May 2006
Done Deals
Charlotte – Pelican Life Sciences (www.pelicanls.com) has secured $100 million in private equity funding for acquisitions and development. The $100 million in equity capital commitments was raised through Grotech Capital Group and Ferrer Freeman & Company, LLC. The funds will be used to acquire companies with proven track records of providing high-quality, differentiated products to support the pharmaceutical, biotech, and academic research market. Contact Bill Baugh (704.875.0044).
Durham – Motricity (www.motricity.com), a mobile content and solutions provider, has received an additional $40 million in funding to fuel the company's aggressive expansion in the mobile content industry. The funding round was led by Advanced Equities Inc. with participation from other existing investors including New Enterprise Associates and Technology Crossover Ventures. Contact Les Hamashima (919.287.7345).
Greensboro – Batanga (www.batanga.com), a based web publisher targeting the Hispanic market, has raised $5 million in its second round of venture capital, led by H.I.G. Ventures. The additional funding will be used to help the company expand into additional distribution, marketing and content channels as well as marketing and advertising. Contact Troy McConnell (336.669.6065).
RTP – Chorus Systems, Inc. (www.chorussystems.com), a provider of IT performance analytics software, has closed a series B investment round after an additional influx of $3 million from Novak Biddle Venture Partners. The round was led by Core Capital Partners in conjunction with Inflection Point Ventures and Anthem Capital Management. Proceeds from the round will fund an expansion of its sales and marketing programs, as well as continued product research and development. Contact Sirus Chitsaz (919.248.9393).
Raleigh – Intervolve, Inc. (www.intervolve.com), a on demand supply chain software provider, has completed a Series C of funding, adding $2 million in private equity. NC IDEA and Sanoch Management participated in the round. The funds will be used for technical purposes, specifically to help accelerate customer implementations and to help develop next generation products. Contact Sandy Smith (919.341.7582).
Raleigh – Red Hat (www.redhat.com), a provider of open source solutions to the enterprise, has entered into a definitive agreement to acquire JBoss, the global leader in open source middleware for approximately $350 million in initial consideration, plus $70 million subject to the achievement of certain future performance metrics. Contact Leigh Day (919.754.3700 ext. 44369).
Raleigh – Noverant (www.noverant.com), a provider of software and services for regulatory compliance in industries regulated by the USFDA, has been acquired by the Dr. F. Gozzo family for an undisclosed amount. The business will continue to operate under the Noverant name and plans to move to a new expanded facility in RTP. Contact Curt Noack (919.861.4540).
Winston-Salem – Targacept, Inc., (www.targacept.com), a biopharmaceutical company engaged in the design, discovery and development of a new class of drugs to treat central nervous system diseases and disorders by selectively targeting neuronal nicotinic receptors, announced the pricing of its initial public offering of 5,000,000 shares of its common stock at a price of $9.00 per share. Targacept’s common stock began trading on NASDAQ on April 12, 2006 under the symbol “TRGT.” Contact Alan Musso (336.480.2186).
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On The Up
INI Power Systems, Inc.
Cary, NC
As yesterday’s PC desktops grow obsolete in light of today’s popular push to go digital, researchers are scrambling to find ways to keep laptops, PDA’s and cell phones up-to-speed with the demand for almost instantaneous access to information and communications.
In response to the digital age’s growing power dilemma, Cary-based INI Power Systems, Inc., (www.inipower.com) has pioneered Portable Power Fuel Cell Systems.
Their patented, Direct Methanol Laminar Flow Fuel Cell (LFFC) provides an inherently high performance micro power system directed at replacing current battery technologies used in portable consumer electronics.
Today’s broad range of consumer electronic devices each require some type of primary or secondary battery to provide usable, grid-free power.
At the same time, the increasing complexity of these devices is exasperating the difference between battery power advancements and device power requirements.
In short, the new, cutting-edge data storage devices require more powerful and longer-lasting sources of portable power to achieve this instantaneous access.
The resulting “Battery Gap” necessitates the development of hybrid and stand-alone fuel cell devices, such as with the Portable Power Fuel Cell Systems, to offer long-lasting, truly grid-free power.
INI Power Systems’ direct methanol Laminar Flow Fuel Cell (LFFC®) was developed in response to this growing gap between power demand and battery capacity.
The INI LFFC® converts the chemical energy of methanol (an infrastructure-friendly liquid fuel) directly into electrical power – so long as the fuel is provided, the fuel cell will continue to generate power.
This means the simple replacement of a fuel cartridge, available through your local department or convenience store, will be all that is required to continue operating the device.
“The last five years have seen an explosion in the functionality of portable electronic devices associated with wireless communications,” said Vice President of Business Development Jeffrey Harrison. “New features and a desire to be ‘always on’ have pushed batteries to the point that continuous operation is limited to only a few hours. INI’s technology is unique in that its fuel cell outperforms the competition in power delivery, operation, manufacturability and cost.”
Over the last four years, INI has expanded its portfolio to six additional patents pending covering improvements and inventions related to the laminar flow concept patent. INI will also present at CED’s Venture 2006 Conference in May. Contact Jeffrey Harrison (919.677.1654).
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New Developments
RTP – Credit Suisse First Boston (www.creditsuisse.com), a financial services firm, has plans to add up to 400 new jobs in an expansion of its "Center of Excellence" facility. The Switzerland-based financial institution plans to fill the new positions over the next two years and invest $40 million in the RTP facility, which houses support staff for the company's investment banking division. Contact John Gallagher (212.325.0932).
RTP – The Council for Entrepreneurial Development has released its annual Venture Report. NC-based companies raised more than $530 million in 2005, representing a nearly 40% increase from 2004. North Carolina received its all-time highest national ranking (#8) in total venture capital investments in 2005, and the state also ranked third nationally in terms of total dollars raised by life science companies ($288 million total). Contact Robert Albright (919.549.7500).
RTP – For the third consecutive year, North Carolina has been ranked as the nation's third leading state for biotechnology. North Carolina trails only California and Massachusetts in the number of biotechnology companies, according to Beyond Borders, Ernst & Young’s 2006 report on the industry, released in April at the BIO 2006 convention in Chicago. Contact Michael Constantino (919.981.2800).
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In the Pipeline
Durham – Inspire Pharmaceuticals (www.inspirepharm.com), a biopharmaceutical company, has received a $1.25 million milestone payment from Japan-based Santen Pharmaceutical related to the development of a product for the treatment of eye diseases in Asia. The payment resulted from Santen's completion of its Phase 2 clinical testing of diquafosol in the first quarter of 2006. Contact Jenny Kobin (919.941.9777 x 219).
Raleigh – Sicel Technologies, Inc. (www.siceltech.com), the developer of telemetric systems that use miniature implantable wireless sensor technologies, has announced that DVSR (Dose Verification System), its wireless, implantable radiation sensor and reader has received 510(k) clearance from the FDA. FDA clearance was based upon successful completion of a multicenter clinical study. Contact Michael Riddle (919.465.2236).
Pittsboro – Biolex Therapeutics (www.biolex.com), a company which uses duckweed to replicate human therapeutic proteins, has announced the expansion of its collaboration with Medarex, Inc. The collaboration was initially formed in February 2005 to create a commercial line for an undisclosed Medarex monoclonal antibody using the Biolex LEX System(SM). The collaboration has been expanded to include commercial line creation for two additional Medarex antibodies. Contact Michelle Linn (774.696.3803).
Raleigh – Erimos Pharmaceuticals (www.erimos.com), a company focused primarily on the discovery, development and commercialization of cancer drugs, and North Carolina State University have filed a joint patent for use of a developmental Erimos product, EM-1421. The product offers potential promise for mitigating the oftentimes fatal complications of multiple influenza strains, among those, Avian Flu. Contact Cindy Clark (919.821.5204).
RTP – Gentris Corporation (www.gentris.com), a global provider of applied clinical pharmacogenomic services and diagnostic product solutions, has announced the availability of Human Genomic DNA Reference Controls for the Cytochrome P450 2D6 gene (CYP2D6). CYP2D6 affects the metabolism of a large number of compounds, including several commonly prescribed cardiovascular, anti-depressant and analgesic drugs. Contact Jonathan Jordan (919.557.7890).
Burlington – TriPath Imaging Inc. (www.tripathimaging.com), a company that develops, manufactures, markets, and sells innovative solutions to improve the clinical management of cancer, including detection, diagnosis, staging, and treatment and Ventana Medical Systems, Inc. have received 510(k) clearance from the FDA for using the Ventana Image Analysis System to assess levels of the biomarker Ki-67, which can provide doctors with data on growth rates for cancer cells. Contact Paul Sohmer (336.222.9707).
Raleigh – Five former Glaxo executives have joined Trana Discovery, Inc. (formerly Neos Discovery) to commercialize technology that identifies drug compounds that interrupt the lifecycle of pathogens through the inhibition of transfer ribonucleic acid (tRNA). The executives include Steve Peterson (CEO), Winnell Newman (Co-Founder, President), Richard Guenther (Co-Founder, Chief Technical Officer), Dan Mitchell (Chief Science Officer), Michael Gallucci (Chief Financial Officer), Ron Stanton (Vice President, Business Development) and Ed Gallagher (VP, Intellectual Property). Contact Karl von Gunten (919.931.1434).
RTP – Chimerix, Inc. (www.chimerix-inc.com), a biotechnology company creating and developing orally available medicines from bioactive molecules has signed a Cooperative Research and Development Agreement with the United States Army Medical Research Institute of Infectious Diseases to evaluate Chimerix's smallpox therapeutic, CMX001, in animal models. The agreement with USAMRIID will provide Chimerix with the opportunity for testing CMX001 and other potential drug candidates. Contact George Painter (919.806.1074).
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Mark Your Calendar!
CED’s Venture 2006
May 2-3, 2006
Pinehurst Resort
Pinehurst, NC
Biotech 2006
May 22-23, 2006
Benton Convention Center
Winston-Salem, 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