Venture
Update Vol. VIII, #7, August 2004
Done Deals
High Point – TransTech Pharma, Inc. (www.ttpharma.com), has increased its Series E Preferred Stock round by an additional $30 million and closed on the first tranche of $10 million. Subsequent closings for the remaining $20 million are scheduled later in the year and in 2005, bringing the Series E total to $65 million. Investors include TransTech’s largest shareholder, New York-based MacAndrews & Forbes Holdings, as well as one of TransTech’s research partners, Novo Nordisk A/S. TransTech will use a portion of the proceeds to advance several of its proprietary small molecule drug programs into development during 2004 and 2005. Contact Dr. Adnan Mjalli (336.841.0300 x101).
Charlotte – Alveolus (www.alveolus.com), a developer of non-vascular stenting technologies, has closed a Series B round exceeding $10 million, led by MDS Capital of Toronto, with participation from FCA Venture Partners III, SBIC, MB Venture Partners, of Tennessee, Healthcare Capital Partners of Atlanta, and Matignon Technologies FCPR of Paris, France. The company, which presented at CED’s Venture 2004, will use the capital to prepare for the commercial launch of its Tracheobronchial Stent Technology System. Contact Ji Hwan You (704.998.6012).
Raleigh – Nitronex (www.nitronex.com) has closed another tranche from its previously announced $6 million series C round. The company, which manufactures gallium nitride (GaN) based radio frequency (RF) power transistors, has raised $1.75 million in convertible debt financing this quarter and expects to raise an additional $1.75 million next quarter. The company will use the funds for working capital. Contact Jim DeVivo (919.807.9100).
Cary – Inveresk Research Group, Inc. (www.inveresk.com) has been acquired by Massachusetts-based Charles River Laboratories for $1.5 billion. The combined company, Charles River Laboratories, will continue to be based in Massachusetts and will also continue to trade on the New York Stock Exchange under the ticker CRL. The Inveresk brand will be retained for all preclinical and clinical businesses. Contact Matt Dallas ( 212.850.5634 ).
Raleigh – Hosted Solutions (www.hostedsolutions.com), an NC-based managed hosting and Web hosting company, has acquired the 14,000 square-foot North Raleigh data center and client base of competitor Redundant Networks. Hosted Solutions, formerly called Springboard Managed Hosting, plans to add at least 10 new IT jobs in the coming months as a result of this deal. The company also owns and operates facilities in Cary and Charlotte. Contact Rich Lee (919.852.0690).
RTP – Unitive, Inc. ( www.unitive.com) has been acquired by Arizona-based Amkor Technology. Amkor will also obtain a majority interest of approximately 60% in Taiwan-based Unitive Semiconductor Taiwan Corporation (UST), a joint venture between Unitive and various Taiwanese investors. Unitive and UST are providers of wafer level technologies and services for flip chip and wafer level packaging applications. Amkor will pay $30.5 million at closing and $15.5 million one year later. Amkor will also assume $23 million in bank debt. Contact David Hays (919.459.1232) .
Durham – Inspire Pharmaceuticals, Inc. (www.inspirepharm.com), has closed its follow-on common stock offering of 6.9 million shares of common stock, including 900,000 shares sold upon the underwriters’ exercise of their over-allotment option in full. Inspire, which has technical and scientific expertise in ophthalmology and respiratory areas, sold the shares at a price of $12.00 per share. Morgan Stanley acted as sole book-running manager of the offering. Deutsche Bank Securities acted as co-lead manager and SG Cowen & Co., LLC and Piper Jaffray & Co. acted as co-managers. Inspire . Contact Greg Mossinghoff (919.941.9777 x 236).
On The Up
Xintek, Inc.
Chapel Hill, NC
A local company is paving the way in the field of nanotechnology. Formerly called Applied Nanotechnologies, Xintek (www.xintek.com) develops and manufactures nanotechnology products and field emissions devices that are used for medical imaging, industrial inspection and information technology.
Xintek’s 13 employees work to develop nanotube materials for x-ray and advanced imaging systems, flat panel displays, as well as space, aircraft and telecommunication equipment. Xintek’s devices help their clients’ products in saving energy, extending life, improving response and reducing costs.
Dr. Otto Zhou, a distinguished professor of Material Sciences and Physics at UNC-Chapel Hill and the director of the North Carolina Center for Nanoscale Materials, founded Xintek in October 2000. The National Academy of Engineering selected Zhou as one of the “100 Most Promising Young Engineers” in 2000.
Xintek, which presented at CED’s Venture 2004 conference in April, acquired $3.5 million in 2001 in its first round of financing. From there, it began to improve its products and expand its client list. Xintek’s client list continues to expand, with nine customers in 2002 and growing to 17 in 2003. Twenty issued and pending patents protect Xintek’s technologies and products.
Shan Bai, Xintek’s chief executive offer, came to Xintek after five years with JP Morgan and Union Bank of Switzerland . Bai has high expectations for Xintek’s future.
“Xintek will be a leading manufacturer of field emission material,” said Bai, who also noted that the company’s strong patent position is an excellent benefit for future development.
Recently, Xintek was awarded the 2004 Frost and Sullivan Award for Technology Innovation in the carbon nanotubes industry. Frost and Sullivan, a consulting company for high-technology and industrial markets, recognizes outstanding industry achievements with its awards. Contact Shan Bai (919.928.8009).
New Developments
Raleigh – Art.com (www.art.com) has released its new Original Art & Photography service to showcase work by both established and emerging artists working in the mediums of drawing, mixed media, painting, photography and watercolor. Membership provides artists with the opportunity to maintain full control of image display and pricing, and retain 100 percent of proceeds on the sale of all original works. Contact Melissa Wilson (919. 831.0015 x2171).
Cary – SAS (www.sas.com) announced that Sprint has selected SAS’s Activity-Based Management software to establish a centralized, enterprise-wide process for gathering and reporting activity-based data. SAS’s software solution integrates with existing financial and operational systems to generate cost and profitability business models. Contact Bob Chase (919.677.8000).
RTP – Smart Online (www.smartonline.com), a provider of Web-based services for small businesses, has signed syndication agreements Inc.com and FastCompany.com, two online business information and news providers. B oth online publications will use Web-based applications from Smart Online, including tools for researching and writing business plans, applying for loans, and drafting leases for office space and equipment. Contact Steve Leon (512.288.0950).
Greensboro – Batanga (www.batanga.com) has partnered with Rock the Vote to encourage young Latinos to register to vote. Batanga, which has 20 separate broadcast formats reaching over 1.5 million listeners, will provide its listeners a link to a newly created Rock the Vote section, where they will be able to register to vote and see Spanish language content. Batanga will also work with additional Latin music artists to develop further encouragement for voter registration. Contact John Reilly (212.445.8440).
Raleigh – Southern Capitol Ventures (www.southerncapitolventures.com), an early stage venture capital firm, has named Dr. Lowry Caudill to its Advisory Board. Dr. Caudill, who co-founded RTP’s Magellan Laboratories, has been actively involved with SouthCap since 2003. Dr. Caudill joins other area executives on SouthCap’s advisory board, including former Red Hat COO Tim Buckley and another Megellan co-founder, Dr. Al Childers. Contact Jason Caplain (919.858.7580 x223).
In the Pipeline
Durham – Icagen, Inc. (www.icagen.com) has entered into an agreement with McNeil Consumer & Specialty Pharmaceuticals – a Johnson & Johnson company – to collaborate on the clinical development and commercialization of ICA-17043, a novel small molecule under development for the chronic treatment of sickle cell disease. The companies will jointly develop and commercialize ICA-17043 in the U.S. and equally share development expenses and commercial returns. Icagen will receive an upfront payment and may be eligible to receive certain milestone payments. Contact Richard Katz (919.941.5206).
RTP – RTI International (www.rti.org) has received a $2 million grant to develop technology that uses plants and agricultural waste to produce clean sustainable energy or chemicals. The project, funded by the U.S. Department of Energy, is one of several ongoing technology research programs at RTI to exploit American energy sources in the most environmentally friendly, efficient and sustainable manner possible. RTI’s project scientists are working in cooperation with others at Clemson University, Cratech and Sud-Chemie. Contact Kathy Pitts (919.990.8388).
RTP – SCYNEXIS Inc. (www.scynexis.com), a drug discovery and development company focused on medicinal, analytical and process chemistry, has received a three-year, $3 million contract from the National Institute on Drug Abuse (NIDA). With the grant SCYNEXIS will produce bulk drug substances for NIDA's ongoing program to develop safe and effective medications for illicit drug dependency. Contact Terry Marquardt (919.544.8600).
Chapel Hill – Asklepios (www.askbio.com) has received a $1.6 million grant from the Muscular Dystrophy Association (MDA) to develop gene therapy for Duchenne muscular dystrophy (DMD), which is a fatal, childhood-onset disease. The contract – administered through MDA’s Translational Research Program – is the largest awarded to a private company in MDA’s 54-year history. Asklepios plans to develop and test a virus-based system designed to deliver a muscle protein that's needed but missing in DMD. Contact Sheila Mikhail (919.313.4612).
RTP – Gentris Corp. (www.gentris.com) and California-based AutoGenomics, Inc. are collaborating to accelerate market introduction of a series of panels in pharmacogenomic testing. These panels of tests can give an indication of a person's tolerance of a drug or efficacy. This agreement will enable rapid detection of genetic mutations related to a patient's drug metabolism status, allowing physicians to administer therapies with the best chance of a beneficial outcome while reducing the likelihood of serious adverse events. Contact David Gessner (919.465.0100).
Raleigh – Salix Pharmaceuticals (www.salix.com) has acquired exclusive U.S. rights to four products from King Pharmaceuticals, Inc. Two of the products are cream products for relief of the inflammatory and pruritic (itching) manifestations of corticosteroid-responsive dermatose, and the other two products are suppository products for use in inflamed hemorrhoids and postirradiation proctitis. Salix paid $13 million for the four products. Contact Michael Freeman (919.862.1000).
RTP – The Council for Entrepreneurial Development (www.cednc.org) has confirmed a keynote speaker and selected 27 demo participants for InfoTech 2004. The 14th annual conference, set for Oct. 8 in the RTP, will feature keynote remarks from Andrew J. “Flip” Filipowski, an investor and serial entrepreneur who was named one of the 100 most influential individuals in the technology field in 2000 by Upside magazine. Among the demo participants showcasing their technology at InfoTech include: Charlotte-based End II End Communications, Carolina Beach-based Institute for Innovations, Raleigh-based Red Hat, Apex-based clearTXT, RTP-based RTI International, Cary-based Covelight Systems and RTP-based MCNC - Grid Computing and Networking Services. Contact Andrea Cook (919.549.7500).
Mark Your Calendar!
CED's InfoTech 2004 Conference
October 8, 2004
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/infotech
6 th Annual Southeastern BIO Investor Forum
November 8-9
Doral Golf Resort & Spa
Miami, FL
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