Venture Update Vol. IX, #4, April 2005
Done Deals
Raleigh – CLOSURE Medical Corporation (Nasdaq: CLSR, www.closuremed.com), a developer of biomaterial-based medical devices, has been acquired by Johnson & Johnson (NYSE: JNJ, www.jnj.com) for approximately $370 million. CLOSURE is expected to operate as a stand-alone entity reporting through Ethicon, Inc., a Johnson & Johnson company, with whom CLOSURE Medical has worked since 1996 on the development of topical adhesives. Contact Benny Ward (919.876.7800).
Raleigh – Peopleclick Inc. (www.peopleclick.com), a provider of workforce solutions for global companies, has entered into a $15 million debt financing agreement with RBC Centura's Knowledge Based Industries division. The financing gives Peopleclick additional working capital to accelerate growth plans, including pursuing acquisition opportunities that will expand product and service offerings. Contact James Buchanan (919.645.2800).
RTP – Xsira Pharmaceuticals (www.xsira.com) has sold its Transfluor imaging technology assets to Molecular Devices Corp., a Silicon Valley-based developer of bioanalytical measurement systems, for $11 million in cash. Transfluor technology offers a way to visualize key cellular events and to detect receptor activation. Xsira, which commercialized the acquired Transfluor technology based on research conducted at Duke University, will now focus on its own drug discovery program, using a license to the technology granted by Molecular Devices. Contact Roger Blevins (919.248.8000).
RTP – Icoria (NASDAQ SC: ICOR, www.icoria.com) has sold select agricultural assets to St. Louis-based Monsanto Company (NYSE: MON, www.monsanto.com) for $6.75 million in cash, installment and milestones payments, plus additional considerations. The acquired assets are related to the field of transgenic traits for agriculture the focus of research conducted under an existing six-year, $55-million agreement signed in 1999 between the companies. Icoria will use proceeds from the sale to accelerate development of its health care business and to fund an internal drug and diagnostics discovery program. Contact Brian Ritchie (212.845.4200).
RTP – RTI International (www.rti.org) has finalized its acquisition of three research divisions of MCNC Research & Development Institute (www.mcnc-rdi.org) in a deal worth nearly $5 million over four years. The move transfers all researchers and research contracts from MCNC-RDI’s Signal Electronics Division, Materials and Electronic Technologies Division, and Advanced Network Research Division to RTI International, where they will become part of RTI's Science and Engineering Group. Contact Patrick Gibbons (919.541.6136).
Raleigh – Summus, Inc. (www.summus.com), a provider of mobile media applications for the consumer wireless market, has raised more than $4 million through the exercise of warrants. Summus will use the funds to pursue partnerships, expand marketing campaigns on new and existing products, and seek out international opportunities. Contact Gary Ban (919.807.5646).
Charlotte – RolloverSystems (www.rolloversystems.com), a provider of technology-based 401(k) and 403(b) rollover products and services, has received an equity investment from Robert L. Johnson, founder of Black Entertainment Television and majority owner of the NBA Charlotte Bobcats. Johnson, who will keynote CED’s Venture 2005 conference on April 27, will become a key shareholder and chairman of the board of RolloverSystems. Johnson will be the majority investor in a round of financing totaling “several million dollars,” according to company officials. Contact Brad Gilliam (888.600.7655).
RTP – Clinipace, Inc. (www.clinipace.com), a software company focused on late-stage clinical research studies and registries, has raised an undisclosed first round of venture funding from the Emergent Growth Fund of Gainesville, Florida. Clinipace, which has also opened a new headquarters in Research Triangle Park, will use the capital to fund product development and boost sales and marketing efforts. Clinipace's flagship product, Tempo, is a Web-based software solution that enables the collection and management of clinical research data, and manages project logistics on one unified and extensible technology platform. Contact Chris Porter (919.306.3008).
RTP – ChannelAdvisor Corp. (www.channeladvisor.com), a provider of auction and marketplace management software and services, has acquired two of the top German eBay Certified Developers and providers of auction management services, AuktionMaster and SpeedSell, for an undisclosed amount. The combination of ChannelAdvisor, AuktionMaster and SpeedSell creates a global company with over $70 million Gross Merchandise Volume (GMV)/month under management. Contact Ashley Jones (919.388.9405).
Durham – SourceKit (www.sourcekit.com), a developer of web-based software, has acquired pnFlashGames, a distributor of Flash games and the software components, for an undisclosed amount. PnFlashGames.com averages over 150,000 unique visitors each month with over 4,000 website owners registered. When webmasters download the pnFlashGames module and install it inside their portal system, it allows them to host Flash games and keep the scores of their users, in turn creating Internet communities and increasing hits to those websites. Contact Drew Adams (919.286.3456).
RTP – WebSourced, Inc. (www.websourced.com), a leading provider of Internet marketing solutions, has acquired the assets of England’s Smart Interactive, Ltd. (www.smart-interactive.co.uk) for an undisclosed amount. Smart Interactive will now have a full-time, fully staffed office in the United Kingdom, positioning the company to expand further in Great Britain and throughout Europe. Contact Andy Beal (919.433.3004).
On The Up
Mardil, Inc.
Morrisville, NC
According to the American Heart Association, more than 5 million Americans suffer from congestive heart failure (CHF), a condition in which the heart can't pump enough blood to the body's other organs. A primary causative factor of CHF is mitral regurgitation or mitral insufficiency, where the mitral valve does not close properly after pumping the blood.
An estimated two million people in the US suffer from mitral valve insufficiency. However, less than 100,000 patients a year undergo surgery to help correct this problem due to the complexity and expense of the required open heart surgery to correct the valvular defect.
Founded in 2002, Morrisville-based Mardil, Inc. (www.mardil.com) is focusing on developing minimally invasive procedures and devices to address these problems with cardiovascular disease. The company plans to design, develop and market new devices to fulfill a current unmet need either by improving on existing technology or by designing a device to serve a need that has been identified by medical professionals.
The current technique used to treat mitral regurgitation is to repair the valve from within the heart or replace the valve, which often requires the use of open-heart surgery and a cardio-pulmonary bypass pump. But a new, patented device developed by Mardil will change the way the condition is treated.
BACE (Basal Annuloplasty of the Cardia Externally) is a device that utilizes a minimally invasive procedure in the treatment of valvular heart disease. Mardil’s BACE system reduces mitral regurgitation without the need for cardiopulmonary bypass and open-heart surgery. The device has also been clinically validated and patented.
“Our technology will dramatically change the current treatment landscape of open heart surgery as the only treatment option for valvular disease,” said CEO Gopal Muppirala. “By developing a minimally invasive procedure to implant BACE, we hope to transform patient care with reduced recovery times, complications, and costs for those with congestive heart failure.”
Mardil was recently selected to present at CED's 22nd annual Venture conference in Pinehurst, NC, set for April 26-27. For more information on Mardil, contact Gopal Muppirala (919.649.6418).
In the Pipeline
Pittsboro – Biolex (www.biolex.com), a privately held protein therapeutics company, has inked a multi-level strategic alliance with Centocor, Inc., to manufacture selected proteins using Biolex’s “LEX System.” Biolex will receive an upfront payment for access to the LEX System, and Centocor will provide Biolex funding over three years to support scale-up. Johnson & Johnson Development Corporation, the venture capital subsidiary of Johnson & Johnson, will make an investment in Biolex’ next equity financing round and provide Biolex further investments to assist with the establishment of additional large scale GMP biomanufacturing facilities. Contact Michelle Linn (508.869.0138).
Durham – Icagen, Inc. (NASDAQ: ICGN, www.icagen.com) has received a milestone payment from Yamanouchi Pharmaceutical Co., Ltd. related to the selection of a compound for advanced preclinical studies as a result of the collaboration between the two companies in dementia, including Alzheimer’s disease. The Icagen/Yamanouchi collaboration in dementia, including Alzheimer’s disease, which began in 2000, provided for an initial upfront payment, research funding and milestone payments to Icagen in return for worldwide rights to lead compounds generated for the treatment of these disorders. Contact Richard Katz (919.941.5206).
Morrisville – Sicel Technologies (www.siceltech.com) has received a second grant from the Sisko Foundation to further develop the company's implantable sensor technology. The grant will be used to create miniature fluorescence sensors that can be encapsulated for implantation at the site of a tumor. Sicel develops telemetric systems that use miniature implantable wireless sensor technologies to continuously provide real time feedback about biological and physiological changes in cell and organ systems. Contact Mike Riddle (919.465.2236).
RTP – Adherex Technologies Inc. (AMEX: ADH, www.adherex.com) and RTP-based SCYNEXIS, Inc. (www.scynexis.com) have signed an agreement under which SCYNEXIS will provide comprehensive medicinal and analytical chemistry services to Adherex with the goal of accelerating and expanding Adherex’s small molecule cadherin antagonist development programs. The agreement provides Adherex with dedicated chemistry resources at SCYNEXIS, including a medicinal chemistry team backed by unique technologies. All proprietary information and data developed through the agreement will be owned solely by Adherex. Contact Melissa Matson (919.484.8484).
Chapel Hill – Lantibio (www.lantibio.com) announced that the FDA has accepted an Investigational New Drug Application (IND) for the human clinical testing of Moli1901, the company’s treatment of dry eye syndrome. The company planned to begin a Phase I clinical study for Moli1901 in Q1 2005. Contact Luis Molina, Ph.D. (919.960.0217).
RTP – The N.C. Biotechnology Center (www.ncbiotech.org) has issued $150,000 loans to two local life science companies, ArrayXpress and Asklepios, through its Small Business Research Awards program. Raleigh-based ArrayXpress (www.arrayxpress.com) will use its loan to develop a diagnostic test for a swine disease. Asklepios BioPharmaceutical (www.askbio.com), recently selected to present at CED’s Venture 2005 conference, will use its $150,000 loan to advance gene-therapy treatment for congestive heart failure. Contact Barry Teater (919.549.8814).
Mark Your Calendar!
CED's Venture 2005 Conference
April 26-27, 2005
Pinehurst Resort
Pinehurst, NC
www.cednc.org/venture
Biotech 2005 Conference
May 24-25, 2005
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/conferences/biotech/2005
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