Venture Update Vol. XI, #4, April 2007
Don’t miss CED's Venture 2007, set for April 23-25, 2007, in North Carolina’s Research Triangle. Connect with hundreds of investors and 50+ presenting companies from across the Southeast and Mid-Atlantic.
Done Deals
Raleigh – River Cities Capital Funds (www.rccf.com), which has offices in Cincinnati and Raleigh, has raised $75 million in a first close of its $150-200 million fourth fund, according to recent fundraising disclosures. The firm is actively looking to invest in IT and healthcare expansion-stage companies in the Midwest and Southeast. Contact Rik Vandevenne (919.573.6112).
Durham – Motricity (www.motricity.com), a provider of mobile content services and solutions, has received $50 million from investment legend Carl Icahn, through an affiliated company. Motricity will use the additional equity funding to pursue acquisitions that broaden its technology base and expand its share of the mobile content services industry. Contact Contact Les Hamashima (919.287.7345).
Durham – Regado Biosciences, Inc. (www.regadobiosciences.com), a privately-held biopharmaceutical company focused on the discovery and development of antidote-controlled antithrombotics, has completed a $23 million Series C financing. New investor Caxton Advantage Life Sciences Fund joined existing investors Domain Associates and Quaker BioVentures, to lead the financing with participation from original seed investor the Aurora Funds and other individual investors. Regado plans to use the funds to further develop the REG1 anticoagulation system as an antidote-reversible anticoagulant for use in coronary revascularization procedures (CABG and PCI) and further as an anticoagulant for other indications. Contact Bruce Sullenger (919.287.9428).
Durham – Liquidia Technologies (www.liquidia.com), a company that manufactures engineered nanoscale particles and patterned surfaces, has received $16 million in new venture capital from New Enterprise Associates. Liquidia plans to use the funds to hire new researchers, as well as technology and business development employees. Contact Luke Roush (919.991.0835).
Durham – Chelsea Therapeutics International, Ltd. (www.chelseatherapeutics.com) has entered into definitive securities purchase agreements with several of its existing institutional and accredited investors to raise approximately $12.5 million, before placement agent fees and offering expenses. The financing is expected to close on or about March 22, 2007, subject to customary closing conditions. Leerink Swann & Company served as placement agent with ThinkEquity Partners acting as financial advisor for the offering. The proceeds from this financing will be used to fund the continued clinical development of CH-1504 in rheumatoid arthritis and Droxidopa in neurogenic orthostatic hypotension. Contact Kathryn McNeil (718.788.2856).
Durham – StrikeIron Inc. (www.strikeiron.com), a provider of live data and business functionality over the Web, has closed a $5 million Series C round of venture capital funding – adding Ascent Venture Partners to its list of investors. Returning investors in the round include The Aurora Funds, Inc. and NC IDEA. The company has received $9.6 million in funding since its launch in 2003. StrikeIron will use this round of funding to expand sales and marketing initiatives, accelerate platform and product development efforts, and further strategic partner programs. Contact Jane Foreman (919.405.7010).
Morrisville – Unit Dose Solutions Inc. (www.unitdoseinc.com), a provider of outsourced drug repackaging services, has raised a $2.5 million Series B Preferred Stock funding round with Cummins Group, LLC. The bridge in new equity from Cummins Group and angel investors positions the company for continued growth, serving customers such as hospital, nursing home, assisted living and other institutional pharmacies, primary care physician practices and pharmaceutical manufacturing and distribution companies in the United States. Cummins Group is currently negotiating with additional venture capitalists for a potential $10 million Series C round by summer 2007. Contact Scott Misner (919.235.0940).
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On the Up
Protochips
Raleigh, N.C.
Seeing microscopic particles is no "small" task, but Protochips, a current FastTrac Tech company, and its electron-microscopy products enable scientists and engineers to explore the world of nanoscale materials.
Through Protochips' innovation, particles are seen at the highest resolution for nanostructures in native environments. Its two products, C-Flat™ and DuraSin™, allow scientists to observe real-time environments with a transmission electron microscope (TEM).
In 2006 Protochips premiered C-Flat™, its ultra-flat, holey carbon-coated TEM support grid used for TEM. C-flat distinguishes itself from competitors because it is made without plastic and arrives to clients residue-free. Therefore, uniform ice thickness provides better particle dispersion while using the support grid.
Scientists have agreed that the uniform thickness can be attributed to higher quality data and higher resolution with C-Flat. Made available in January 2007, the product has nine holey film patterns. C-Flat, along with Protochips's other products, can be customized to fit users' needs for size, shape or spacing of the holes on the grids. The material of the grid can be altered as well.
Protochips's innovative C-flat can be used for single particle analysis, cryo-electron tomography and automated TEM analysis. Protochips has taken TEM to the "smallest" level.
"Our products enable new discovery and support research and development around the world," said John Damiano, president of Protochips.
The DuraSiN™ Film and Mesh has the advantage of a wide range of applications with the non-organic, durable material. These two products can withstand harsh chemical and temperature environments.
Protochips has developed DuraSiN film for the analysis of colloids, powders, aerosols and polymers. It is designed to have specimens grown directly on the film to withstand high temperatures or severe chemical conditions.
The durability of DuraSiN films support multi-analysis of TEM or X-ray and AFM, which covers both the internal structure and surface detail of a specimen.
Semiconductor devices are in the development stages, which will interact with the particle inside the microscope with the assistance of Protochips' films. In January 2007 NC IDEA provided a grant for intellectual property protection and business development. Contact John Damiano (919.341.2612).
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New Developments
RTP – The Council for Entrepreneurial Development (www.cednc.org) has announced the presenting company lineup for Venture 2007. More than 50 pre-seed, early, main stage and showcase companies from across 7 states will present at the conference, to be held April 23-25 at the Washington Duke Inn & Golf Club on the campus of Duke University in Durham, N.C. Visit the Venture 2007 Web site for more details.
Winston-Salem – Plureon Corp. (www.plureon.com), a stem cell technology company, has been awarded a grant by the National Institute of Diabetes and Digestive and Kidney Diseases to advance the company's platform stem cell technology in the field of diabetes. The grant provides $1 million in funding over a two-year period and may be extended after that for a total of up to $4 million. Contact Hal Eason (336.499.2673).
Raleigh – INC Research (www.incresearch.com), a therapeutically focused contract research organization, and GVK Biosciences of India (GVK BIO) have entered into a 50:50 equity stake joint venture to form INC GVK BIO Private Limited. The joint venture gives INC Research the capability to run full service, Phase I-IV clinical trials in India for its Pharma and biotechnology customers, utilizing clinical research resources at GVK that are fully dedicated to INC GVK Bio India projects. Contact Tanya Orth (858.457.4888).
Rock Mount – The Golden LEAF Foundation (www.goldenleaf.org) has awarded two grants totaling $2,250,000 to help two North Carolina universities. North Carolina State University received $1.5 million and Appalachian State University received $750,000 to help both universities develop alternative energy resources. Contact Ray Jacobson (252.442.7474).
Greensboro – North Carolina Agricultural and Technical State University (www.ncat.edu) has launched a spin-off company based on research conducted in the School of Agriculture and Environmental Sciences. Provagen is a biotechnology company that plans to produce and market a protein – called Protein V – that can be used in medical research or in manufacturing treatments and diagnostic tests for disease. A&T will retain equity in the company and earn royalties on the product. Contact Laurie Gengenbach (336.334.7048).
RTP – Cognosci, Inc. (www.cognosci.com), a pharmaceutical company with proprietary anti-inflammatory compounds based on apolipoprotein-E, was awarded two Small Business Innovation Research (SBIR) grants worth over $525,000. The first grant, "Novel Therapy for Sepsis," was received from the National Institute of Allergy and Infectious Disease (NIAID) and the second, "Novel Intervention for Colitis," was from the National Institute of Diabetes And Digestive And Kidney Diseases (NIDDK). The receipt of these awards adds new collaborative investigators at Duke University and at Vanderbilt University to the extensive roster of academic collaborators for Cognosci. Contact Michael P. Vitek (919.765.0028).
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In the Pipeline
Durham – Professor Adam Wax and a team of researchers at Duke University's Pratt School of Engineering (www.pratt.duke.edu) have built a light-based probe was almost instantly able to detected the earliest signs of cancer in cells that line internal organs in its first laboratory tests on human tissue. If the preliminary success of the "optical biopsy" is confirmed through clinical trials, such a device could ultimately provide a particular advantage for early diagnosis, treatment and prevention of many types of cancer, according to the researchers. Contact Kendall Morgan (919.660.8414).
Cary – CeNeRx BioPharma, Inc. (www.cenerx.com), a clinical stage company developing and commercializing innovative treatments for diseases of the central nervous system, has announced top-line results from a Phase I clinical trial of Tyrima, its lead candidate for the treatment of depression and anxiety. In this study, Tyrima was safe and well tolerated. Tyrima is a member of a novel class of drugs known as reversible inhibitors of monoamine oxidase A, or RIMAs. CeNeRx will also present at CED's 24th annual Venture 2007 conference. Contact Barbara Lindheim (212.918.4650).
RTP – GlaxoSmithKline (www.gsk.com) announced that the United States FDA approved Tykerb (lapatinib), in combination with Xeloda (capecitabine), for the treatment of patients with advanced or metastatic breast cancer and who have been unsuccessfully treated with other chemotherapeutic agents. It is the first targeted, once-daily oral treatment option for this patient population. Tykerb was granted Priority Review by the FDA in November 2006. Contact Susan Cruzan (301.827.6242).
Morrisville – Salix Pharmaceuticals (www.salix.com) will pay Merck $55 million for gastrointestinal drugs to treat ailments such as ulcers. Salix will pay up to $6 million for the rights of Pepcid Oral Suspension and Diuril Oral Suspension. Salix recently reported a profitable fourth quarter, beating Wall Street expectations. The company also secured a $100 million line of credit to finance the deal with Merck. Contact Michael Freeman (919.862.1000).
RTP – Talecris Biotherapeutics, Inc. (www.talecris.com) has begun a Phase I/Phase II clinical trial investigating the ability of Plasmin to treat acute Peripheral Arterial Occlusion (aPAO). In patients with aPAO, arterial blood flow to extremities, usually the legs, becomes blocked by a blood clot. Plasmin will be tested in patients with recent (within two weeks) onset or worsening of symptoms resulting from a blood clot in a leg artery or arterial bypass graft. Contact Lacy McMahon (919.316.6316).
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Mark Your Calendar!
Venture 2007 Conference
April 24-25, 2007
Washington Duke Inn & Golf Club
Durham, NC
Biotech 2007 Conference
May 14-15, 2007
Durham Marriott at the Civic Center
Durham, NC
CED's 2007 Entrepreneurial Excellence Awards
June 12, 2007
American Tobacco Historic District
Durham, N.C.
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