Venture
Update Vol. VII, #8, October 2003
Done Deals
RTP - Incara Pharmaceuticals Corp. (www.incara.com) has raised $5 million in a private placement of debt with Goodnow Capital, an investment firm controlled by Xmark Funds. Goodnow invested another $3 million in Incara in July 2003, with an option to invest the additional $5 million. Incara will receive the additional funds in installments, subject to Incara's completion of a reorganizational merger and satisfactory completion of a toxicology study relating to Incara's catalytic antioxidant compounds. The financing will help Incara complete a Phase 1 clinical trial for AEOL 10150, a catalytic antioxidant compound for the treatment of amyotrophic lateral sclerosis, which is also known as Lou Gehrig's disease. Contact W. Bennett Love (919.558.1907).
RTP - Chimerix, Inc. (www.chimerix-inc.com), has closed a $3.1 million preferred stock financing. Funds from the stock financing will be used as working capital to further the progress of Chimerix's drug development programs for HIV and Hepatitis C. Chimerix's founding investors, Sanderling Ventures and Asset Management, led the $3.1 million financing. In addition, the company has landed a $36.1 million grant from the U.S. National Institute of Allergy and Infectious Diseases, part of the National Institutes of Health. The grant will cover the remaining work necessary to complete development and seek regulatory approval for CMX-001, Chimerix's oral antiviral drug for the treatment of smallpox. Contact George Painter (919.806.1074).
Morrisville - etrials Worldwide, Inc. (www.etrials.com), has closed $2.5 million in a private placement of Series A convertible preferred stock. Prodea, a venture capital firm based in Richardson, TX, led the round along with Infologix, which already is an etrials investor. Fred Nazem, chairman of the board of etrials, and other etrials management also participated in the round. Nazem's firm, Nazem and Company, coordinated the investment. The series A financing will be used to expand the company's international presence. It is the first investment round since the recently completed merger between etrials and Araccel Corporation. Etrials provides software for the collection, integration and review of data in the clinical trial process. Contact Craig Pyne (919.653.3400).
RTP - Oriel Therapeutics (www.orieltherapeutics.com) has received $2 million in capital from Wilmington-based PPD and Trudell Medical International of Canada. Oriel, named the Spin-off Company of the Year and Capital Connection Company of the Year at CED's annual awards in August 2003, has also received grants totaling $250,000 from the N.C. Biotechnology Center and the National Institutes of Health to further develop its technology. The company also recently presented 55,000 shares of common stock to the UNC-Chapel Hill Foundation as part of a licensing agreement signed when Oriel spun off from UNC-Chapel Hill in 2001. Oriel's technology is an inhaler that applies an electronic signal to dry powder inhalers and allows the device to drive the delivery of the drug rather than the patient's own efforts. Contact Paul Atkins (919.313.1290).
Raleigh - Qualyst (www.qualyst.com) has completed the first closing of its Series A preferred stock financing and has forged an agreement with pharmaceutical giant AstraZeneca. Burton Advisors of London is acting as the financial advisor and placement agent of the offering. Qualyst officials did not announce financial details of the first round financing. Qualyst is developing products that allow researchers to predict more accurately how drugs will react in the human body. Faculty at UNC-Chapel Hill's School of Pharmacy founded the drug discovery company. Contact Scott Neuville (919.754.8500).
On The Up
Affinergy, Inc.
RTP, NC
Affinergy, Inc. develops “biological glues” which can selectively bond or repel specific materials and regulate biology at the surface of objects implanted into the body. Practical applications include improving bone ingrowth on orthopedic devices such as hip implants; repelling infections from catheter/medical devices; upgrading the capabilities of blood filters; and “kick-starting” biological processes to grow new arteries.
Affinergy (www.affinergy.com) was recently selected to move into BD Technologies' RTP incubator space. In addition, Affinergy was competitively chosen to participate in an early-stage event at the fifth annual Southeastern BIO Investor Conference (www.sebio.org) in Pinehurst, NC, on Nov. 10 and 11. Twelve early-stage life science companies will participate in the conference.
Affinergy will not make or sell products, but it will capture its revenues from up-front licensing and milestone fees as well as ongoing royalties from companies who make products that are improved by Affinergy's IFBM technology. The company's key competitive advantages over traditional surface coatings allow it to control biology on a specific surface in a customizable manner. Unlike harsh chemical treatments required by competitors, Affinergy technology can be sprayed, dipped, printed, or brushed onto materials, which allows for wider usage. This advantage allows Affinergy to sell to numerous markets while providing advanced performance coatings and potentially reducing manufacturing costs.
Affinergy's CEO, Peyton Anderson, is a successful entrepreneur who co-founded SciQuest, Inc., in 1995 as the startup CEO. Anderson said that he is excited about Affinergy's business model.
“Affinergy's proprietary technology platform, low fixed operating costs, high margins, and recurring revenues make it a unique investment opportunity. Our scientific founders are brilliant people who developed a platform technology with practical uses in many different markets. We aspire to raise the standard of health care for many people while building a successful business.”
Contact Peyton Anderson (919.345.4732).
New Developments
Chapel Hill - UNC-Chapel Hill (www.unc.edu) announced that the university has received a $2 million gift from the Wachovia Foundation. The $2 million commitment from Wachovia will be dispersed among UNC's business, law and medical schools. UNC's Kenan-Flagler Business School will get $1.1 million for its Wachovia Center for Corporate Finance, which will promote innovative and timely research in corporate finance. UNC's School of Medicine will receive $600,000 to establish the Wachovia Scholars Endowment Fund to help recruit and provide scholarships for disadvantaged and minority students entering the school. The remaining $300,000 will go to the UNC School of Law's Center for Banking and Finance, which will establish the Wachovia Term Professorship in Banking and Finance through a permanent endowment. Contact Aimee Worsley (704.715.2005).
Durham - The Aurora Funds (www.aurorafunds.com), an early stage venture capital firm, announced that Dr. Christopher Kroeger has joined the team as Life Science Associate. Kroeger recently earned his MBA from Harvard Business School, after earning his doctorate in medicine at Stanford University School of Medicine. Kroeger's new role at The Aurora Funds allows him to combine several areas of interest, including research, medicine and business. Kroeger will work closely with the other members of the Aurora Life Science investment team to source and evaluate prospective deals. He will also work closely with Aurora's life science portfolio companies, sharing his diverse scientific, medical and business expertise. Contact Shawn Ramsey-Kroboth (919.621.0737).
RTP - The North Carolina Biotechnology Center (www.ncbiotech.org) has appointed Charles Moreland, a retired vice chancellor for research at N.C. State University, as Western North Carolina liaison for the Biotech Center. Moreland, a chemistry professor for 38 years and current vice chairman of the Biotech Center's board of directors, will serve as a point person for developing the industry in the western part of the state. Moreland will work to connect the region's business, education and government leaders with the programs and resources of the NC Biotech Center in the RTP. The Western North Carolina office will open officially in Spring 2004. Contact Barry Teater (919.541.9366).
In the Pipeline
Chapel Hill - POZEN Inc. (www.pozen.com) has signed a licensing agreement with San Diego-based Xcel Pharmaceuticals that will provide POZEN with a $2 million upfront payment and up to another $8 million in milestone payments. Under the terms of the agreement, Xcel will have exclusive rights in the U.S. to commercialize POZEN's MT 300 compound, which is expected to provide an effective injectable treatment for patients suffering from severe migraine headaches. MT 300 is being developed as an improved and highly purified formulation of dihydroergotamine mesylate (DHE) in a convenient pre-filled syringe that is suitable for at-home use. Contact Lisa Barthelemy (919.913.1044).
Winston-Salem - Targacept (www.targacept.com) has been awarded a grant from the National Institute of Standards and Technology's (NIST) Advanced Technology Program (ATP). The grant will provide approximately $2 million over a three-year period. The award will help fund Targacept's development of computer simulation software designed to predict biological and toxicological effects of drugs, which would enable enhanced predictions about the molecular properties of drug candidates, improve selection of compounds for development and reduce the failure rate in the drug development process. Contact Debra Perret (336.480.2226).
RTP - Raindrop Geomagic (www.geomagic.com), a developer of computer-aided inspection systems, has been awarded $2 million in research funding from the National Institute of Standards and Technology's Advanced Technology Program (ATP). The award will fund research to develop, validate and benchmark new computer-aided inspection (CAI) technology over a three-year period. The NIST ATP award allows Raindrop Geomagic to extend its research to address the technical challenges that arise from introducing CAI technology into the manufacturing environment. Contact Bob Cramblitt (919.481.4599).
RTP - Zen-Bio, Inc. (www.zen-bio.com), has received a $100,000 Phase I Small Business Innovation Research (SBIR) grant from the National Institute of Diabetes and Digestive and Kidney Diseases. Zen-Bio will use the grant for the commercialization of visceral preadipocytes and adipocytes, both of which are cells that help researchers determine the causes of human metabolic disorders such as obesity, diabetes and cardiovascular disease. The primary focus of research at Zen-Bio is the link between obesity and type 2 diabetes. Contact Richard Giersch (919.547.0692).
Durham - Inspire Pharmaceuticals, Inc. (www.inspirepharm.com), announced that the U.S. Food and Drug Administration has accepted for filing the company's New Drug Application (NDA) for diquafosol, aimed at treating dry eye. In addition, the FDA stated in the Filing Review Letter that no potential filing review issues were identified during the 60-day preliminary review period. After submitting the diquafosol NDA on June 27, the FDA granted Priority Review status for the application and set December 24, 2003, as the target date for initial FDA action. Recognizing Inspire's recent FDA success, NASDAQ officials invited Inspire CEO Christy Shaffer to preside over the “Market Open” in New York on Sept. 30. Contact Mary Bennett (919.941.9777).
RTP - Icagen, Inc. (www.icagen.com) has completed patient enrollment in its Phase II clinical trial of ICA-17043 for the treatment of sickle cell anemia. Results from this 90-patient trial are expected in the first quarter of 2004. The trial is being conducted at 21 centers across the United States. The study, which has three levels (high dose, low dose and placebo), is designed to evaluate the effectively of ICA-17043 and provide further information regarding its safety in sickle cell anemia patients. Contact Richard D. Katz (919.941.5206).
Wilmington - aaiPharma Inc. (www.aaipharma.com) has received U.S. Food and Drug Administration approval of Darvocet A500 for the treatment of mild to moderate pain. Darvocet A500 will provide patients a unique Darvocet formulation with the safety benefits of less acetaminophen and the full power of propoxyphene. aaiPharma previously acquired the pain treatment product from Athlon Pharmaceuticals. The Wilmington-based company is preparing for an immediate launch to the trade followed by a national launch of Darvocet A500 in October. Contact James B. Sloan, Jr. (910.254.7690).
Mark Your Calendar!
InfoTech 2003 Conference
October 27, 2003
RTP, NC
www.cednc.org/infotech
SEBIO 2003 Conference
November 10 & 11, 2003
Pinehurst, NC
www.sebio.org
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