Venture
Update Vol VI, #6, July-August, 2002
Durham - SCYNEXIS, Inc. (www.scynexis.com), a provider of a full range of synthesis chemistry services to the life sciences industry, completed a $29 million round of financing from a syndicate of U.S. and European venture funds led by Alta Partners. This is the largest venture capital round in North Carolina this year. Also included among the new investors were Burrill & Company, SR One, CDC Innovation Partners and KdL Healthcare Ventures. SCYNEXIS' original investors Genavent, SG Asset Management and Ventech also participated in the Series C financing. SCYNEXIS was launched as a spin-off from Aventis CropScience in July, 2000. In addition to its RTP headquarters, the company has an office near Cambridge, England. Contact: Terry Marquardt (919.544.8600)
RTP - Nobex Corporation (www.nobexcorp.com) lined up $12 million in its $40 million round from AEA Investors in the company's sixth venture round. Other investors in the round include Aurora Funds of Durham, Crescendo Ventures of Palo Alto, Calif., and Sweden-based HealthCap. Nobex also recently entered in a strategic alliance with GlaxoSmithKline (GSK) for the development of oral insulin products for the treatment of diabetes, according to the North Carolina Biotech Center. Under a deal valued at up to $283 million, GSK will pay an up front sum and milestone payments to Nobex in support of product development, manufacturing, and marketing. The two companies will collaborate on product development and drug discovery efforts. Contact: Christopher Price (919.474.0507)
Raleigh - INC Research (www.incresearch.com), a provider of central nervous system and oncology clinical drug development services, received an $11 million private round of equity financing. California-based Crosspoint Venture Partners led the round with participation by existing investors. The new capital will allow the company to pursue growth opportunities, to include global business expansion and further enhancement of its data management capabilities, provided through its wholly-owned division, DataSpectrum Inc. Contact: Glenn Bilawsky (919.876.9300)
Fayetteville - Total Billings (www.scs-direct.com), a mailing outsourcer, raised a $3 million second-round from Frontier Capital of Charlotte and Dogwood Equity of Raleigh. Contact: Greg Staderman (910.487.8755)
Charlotte - AvidXchange (www.avidxchange.com), which sells an Internet-based bid management and purchasing system to commercial and multi-family real estate companies, secured $1 million in venture capital, bringing its total to $3.5 million raised since it was launched in 2000. CT Communications Inc. of Concord led the round, which includes new investment from previous backers and AvidXchange executives. The company will use the money to increase its sales push in Atlanta, Charlotte, Washington, Chicago and New York. Contact: Michael Praeger (704.943.3860)
UNC Charlotte
The University of North Carolina at Charlotte, the fourth largest institution in the UNC system, is home to an innovative and dynamic research center, which is spinning off more and more new companies each year.
In the early 1990s, UNC Charlotte built the C.C. Cameron Applied Research Center as a home for interdisciplinary research followed by the creation of the Charlotte Institute for Technology Innovation to accelerate commercialization.
During fiscal year 2001, university and Cameron researchers disclosed 36 inventions, filed 28 patent applications, had six patents awarded and formed six new start-up companies. Two of the new spin-off companies include Waveguide Solutions, which designs and builds devices and subsystems for optical communications, and MindValve, an innovator in intelligent business decisions and real-time analytics. Already in 2002, UNC Charlotte has five more companies being spun-off and five more in the pipeline, according to Mark Wdowik, Executive Director of Technology Transfer.
The 36 inventions disclosed in FY2001 by UNC Charlotte researchers include innovations in biotechnology, mechanical systems, precision machining, optoelectronics, information technologies, advanced manufacturing methods, New Developments semiconductor materials, devices and processes, and advanced polymers.
"We are strategically focused in order to make the greatest impact," said Elizabeth Hardin, Interim Executive Director for the Charlotte Institute.
"We are interdisciplinary, applied, and actively performance managed."
UNC Charlotte consistently ranks in the top five for tech transfer on the Southern Technology Council's Tech Transfer list on a normalized, per research dollar basis.
As further testament to its growing track record, the Institute received $10 million, the largest corporate gift ever from Duke Energy, in February 2002. The Institute begins initial construction on its new 100-acre research park this summer and has a permanent director, Deborah Clayton, starting in August.
Contact: Beth Hardin (704.687.4100)
Cary - Inveresk Research (Nasdaq: IRGI) (www.inveresk.com) sold $145 million in stock to the public, in the first initial public offering by a North Carolina company this year. The research and drug development firm plans use to use the cash generated in the IPO to repay debt owed to the company's major stockholders and to expand its clinical research facilities in the United States, Canada, and Europe. In addition to its base in Cary, the company has facilities in Edinburgh, Scotland; Montreal, Canada; Maidenhead, England and seven other countries in Europe. Contact: Walter Ninno (919.460.9005)
Durham - ChemCodes (www.chemcodes.com), a developer of chemical synthesis technology for the discovery and development of new medicinal compounds and materials, announced the appointment of John Didsbury as president and CEO. Didsbury recently served as a head of strategy and operations for GlaxoSmithKline's drug discovery unit based in Research Triangle Park. He replaces ChemCodes' interim CEO, Robert Bell, who will move to the role of chairman. Contact: Steve Holdaway (919.806.3553)
Durham - Inspire Pharmaceuticals' (Nasdaq: ISPH) (www.inspirepharm.com) shares shot upward after the company unveiled strong test data for its experimental treatment for dry-eye disease, marking a major turnaround from earlier disappointing results. Shares in the company rose 103 percent after the announcement. "We are extremely pleased with the results of this study. The corneal staining results, an important measure of the drug's efficacy, are overwhelmingly positive throughout the entire study," stated Christy L. Shaffer, Ph.D., Chief Executive Officer of Inspire. Inspire expects to submit an application to the Food and Drug Administration for marketing approval of INS365 in the second half of next year. Contact: Christy Shaffer (919.941.9777)
Wilmington - PPD, Inc. (Nasdaq: PPDI) (www.ppdi.com) acquired by way of merger Morrisville-based Piedmont Research Center II, Inc., a cancer research company that performs preclinical evaluations of anti-cancer therapies. The research facility serves national and international pharmaceutical and biotechnology companies. PPD, Inc. also recently purchased stocks and warrants worth $3.6 million in BioDelivery Sciences International. According to Local Tech Wire, PPD says it is interested in BioDelivery's patented technology for possible oral delivery of drugs vs. injection. The investment was made as part of BioDelivery's recently concluded public offering. Contact: Fred Eshelman (910.251.0081)
Raleigh - Innovent Solutions (www.InnoventSolutions.com), a business intelligence and CRM solutions provider, acquired Boston-based Reportability.com, a company known for implementing enterprise reporting and analysis solutions for corporate clients. Financial terms of the deal have not been disclosed, but all key staff from Reportability.com will join the organization, effective immediately. Innovent Solutions is headquartered in Los Angeles with offices in San Mateo, Minneapolis, and Raleigh. The acquisition of Reportability.com better positions Innovent to reach financial services and insurance companies in the Northeast United States. Since 1996, Innovent has been an actuate services provider, where the company provides training, design, development and deployment of actuate information delivery solutions. Contact: Eric Dingfelder (919.401.0029)
On June 18, 2002, the entrepreneurial community and their families celebrated the Triangle's year of challenges met and success achieved with the 16th annual Entrepreneurial Excellence Awards. More than 500 CEO's, employees, service professionals and other friends of entrepreneurial companies enjoyed the awards presentation and a night of carnival games, great food, and fun.
Special thanks to Jim Cain and the Carolina Hurricanes staff for hosting the Awards celebration and to all other sponsors. Some of the award winners include:
Entrepreneurial Excellence & Deal of
Year
Magellan Labs
Alfred Childers
W. Lowry Caudill
Growth Company of Year
TogetherSoft
Life Science Technology of the Year
Norak Bioscience, Inc.
IT Product of the Year
Peopleclick
Spin-Out Companies of the Year
Amphora
Silicon Wireless
Established Company
Trimeris
Start-Up of the Year
Athenix
Cropsolution
For more information about CED's Awards and winners, visit www.cednc.org/awards/2002
Springboard:
Southeast 2002
September 27, 2002
Kenan-Flagler Business School, UNC-Chapel Hill,
Chapel Hill, NC
InfoTech
2002
October 29-30, 2002
Sheraton Imperial
RTP, NC
For more information, visit the CED Web site (www.cednc.org) or call 919.549.7500.
CED is a private non-profit organization based in Research Triangle Park, North Carolina. With over 5,000 members representing 1,200 entrepreneurial companies, investors, intermediaries, corporations, educators and public policy leaders, CED is the largest and most active entrepreneurial support organization in the United States. For more information, contact www.cednc.org.
Research Triangle Venture Update is published by the Council for Entrepreneurial Development (CED), a non-profit organization located in Research Triangle Park, N.C.