Venture Update Vol. IX, #6, June 2005
Done Deals
Cary – SpectraSite, Inc. (NYSE: SSI, www.spectrasite.com) has agreed to merge with Boston-based American Tower Corporation in a $3.1 billion all-stock deal. The combined company will have over 20,000 tower sites in the United States and over $1 billion in annual revenues. The transaction, which is subject to approval by shareholders of American Tower and SpectraSite, as well as regulatory approvals and other customary closing conditions, is expected to close in the second half of 2005. Contact Steven Lilly (919.465.6803).
RTP – Tranzyme Pharma (www.tranzyme.com), a biopharmaceutical company developing mechanism-based therapeutics for the treatment of gastrointestinal disorders, has completed an oversubscribed $32 million round led by H.I.G. Ventures, Thomas, McNerney & Partners and Quaker BioVentures. Additional participants in the round included existing investors, Business Development Bank of Canada (BDC Venture Capital), Desjardins Venture Capital, Pacific Rim Ventures and The Solidarity Fund (FTQ). Tranzyme will use the funds to accelerate the clinical development of its lead compounds and focus on additional discovery and pre-clinical development efforts to expand the company’s pipeline. Contact Vipin K. Garg (919.597.6614).
Cary – Biopheresis Technologies, Inc. (www.biopheresistech.com), which is developing a novel cancer treatment system, has received a 6.5 million Euro (approximately $8 million USD) Series A preferred stock financing from European investors Scandinavian Life Science Venture (SLS) and First Ventury. The company will use the funds to conduct further clinical trials to demonstrate the effect of its therapy on tumor disease, patient safety and well-being. Biopheresis completed a clinical trial in 2004 that demonstrated capability of its proprietary medical device to remove specific immune inhibitors from the blood of cancer patients. Contact Santo Costa (919.604.2189).
San Jose – JDS Uniphase (NASDAQ: JDSU, www.jdsu.com), a California-based developer of optical communications products, has agreed to pay $760 million in cash and stock for Maryland-based Acterna (www.acterna.com), a privately held provider of communications test products for telecommunications and cable network operators. Acterna’s Service Assurance Solutions division is based in Raleigh. With combined annual revenues of over $1 billion, JDS’ portfolio of products and services will focus on Internet Protocol-based data, voice and video services over optical long haul, metro, fiber-to-the-home, DSL and cable networks. Contact Jacquie Ross (408.546.4445).
On The Up
Instancy, Inc.
Cary, NC
Each year, numerous start-up companies seek to fulfill an unmet need. With a new platform technology, Cary-based Instancy, Inc. (www.instancy.com), is striving to fill a unique position in the technology sector.
Founded in 2003, Instancy enables organizations to create and deliver context-driven, personalized, interactive, and media-rich content seamlessly on the Web and Mobile devices. The company offers a software-as-a-service solution that enables organizations to take advantage of Web and Mobile Internet to deliver personalized content to customers, partners, or employees to improve product marketing, customer education, training, sales and customer service productivity.
Using the Web browser and mobile portals as the base delivery platform, Instancy’s technology platform ensures that the right business intelligence and knowledge or content can be delivered to any device in real-time. Based on a Microsoft .NET framework, the Instancy Platform is a “knowledge workflow management” platform.
By uniquely combining content management, business process management, business intelligence, and mobility with an easy to configure interface, Instancy’s technology allows organizations to cut costs and increase profits by being more responsive to customers. As a result, companies can improve the rate of customer acquisition, retention and loyalty.
Publishers, training/education and media companies can monetize the value of their content through multiple business and e-commerce models (content sales to corporate customers or consumers) through Instancy’s fully hosted and managed Web and mobile software application and extensible platform.
In addition, organizations can instantly provide task and context-based information, content, and business intelligence to their customers and employees (for example, sales and customer service web and mobile portals) and collect field information to create close loop communication.
“Instancy has forward-thinking technology that goes beyond a niche market,” said CEO Harvey Singh. “Web and Mobile Internet technologies will continue to evolve. Our unique combination of flexible platform technology and channel relationships has helped us to create a long-term vision that will serve the ongoing needs of companies.”
Instancy recently presented at CED's 22nd annual Venture Conference in Pinehurst, NC. Contact Harvey Singh (hsingh@instancy.com; 919.653.4981).
New Developments
RTP – Lenovo (www.lenovo.com) plans to establish a new “Innovation Center” in Research Triangle Park that will enable customers, business partners, solution providers and independent software vendors to collaborate on new personal computing solutions. Intel, IBM, LANDesk, Microsoft, and Symantec are founding partners in the Innovation Center. The facility will be staffed by engineers, programmers, product developers, and sales and marketing professionals from these companies to collaborate in multi-day developmental projects with customers throughout the world. Lenovo recently closed on its $1.75 billion acquisition of IBM’s PC division, which is based in the RTP. Contact Bob Page (919.991.3467).
Durham – Cree, Inc. (NASDAQ: CREE, www.cree.com) announced that its Japanese distributor, Sumitomo Corporation, has agreed to purchase $200 million of Cree's light emitting diode (LED) products during Cree's fiscal year ending June 2006. This record purchase commitment was added to the existing distributorship agreement, which extends through Cree's fiscal year ending June 2007. Both companies anticipate that purchases will be made across Cree's full line of LED chip products representing its standard brightness, mid-brightness and high brightness devices. Contact Raiford Garrabrant (919.313.5397).
Morrisville – Trinity Convergence, Inc. (www.trinityconvergence.com), a developer of embedded communications software for the VoIP and V2IP (video- and voice-over-IP) markets, has expanded its Research & Development Center in Cambridge, U.K. The move to a new facility in the Cambridge Business Park allows for the continued growth of the company. In addition to the new U.K. facility, Trinity also opened a sales office in California, and plans to open a sales and support office in Taiwan later this year. Contact Alli Blakebrough (919.433.7004).
RTP – The Southern Growth Policies Board (www.southern.org), a regional public policy think tank, has launched a multi-state task force called VentureSouth to create a Southern network of venture capitalists, entrepreneurs and policy makers to increase the flow of venture capital funds to the region. Virginia Governor Mark Warner, a former venture capitalist, will chair the initiative. Project partners in VentureSouth include CED and Competitive Economics, a venture capital and consulting firm. Membership in the task force will be capped at 100 firms, with participants primarily coming from the private sector. Contact Scott Doron (919.941.5145).
Raleigh-Durham – The Research Triangle region recently ranked #2 in Forbes’ annual list of “Best Places for Business and Careers” (http://www.forbes.com/home/lists/2005/05/05/05bestplaces.html). The top ten metro areas were Boise, ID; Raleigh-Durham, NC; Austin, TX; Washington, DC; Albuquerque, NM; Huntsville, AL; Fayetteville, AR; Norfolk, VA; Atlanta, GA; and Madison, WI. The rankings weighed living costs and business costs such as labor, energy, tax and office space expenses. Contact Kat Saunders (212.725.0707).
Raleigh – The N.C. Rural Economic Development Center (www.ncruralcenter.org) and other members of a North Carolina project team have received a $2 million grant from W.K. Kellogg Foundation to create a comprehensive entrepreneurship development system to serve rural and minority entrepreneurs in low-wealth areas of the state. The project one of six to receive funding from a pool of more than 180 applicants nationwide will help communities develop a range of services for their small businesses, including education and training opportunities, technical assistance, access to capital and business-to-business networking. CED is among the project partners. Contact Leslie Scott (919.250.4314).
In the Pipeline
Chapel Hill – Asklepios Biopharmaceutical Inc. (www.askbio.com) has entered into an early-stage research and collaboration agreement with California-based Bayer HealthCare, LLC, Biological Products Division (www.bayerbiologicals.com) to evaluate gene therapy for the treatment of hemophilia B. Pending positive results of a feasibility study, this collaboration could lead to a joint development and commercialization agreement between Bayer and Asklepios for the novel gene therapy treatment for hemophilia B. Contact Sheila Mikhail (919.933.4990).
Morrisville – Quintiles Transnational Corp. (www.quintiles.com) has entered into a strategic partnership with Roche for clinical study management services. The two companies have signed a three-year preferred provider agreement, which will give Roche more flexibility and efficiency in the development of its product pipeline. Roche is developing a pipeline of medications for diabetes, hepatitis, anemia, rheumatoid arthritis and cancer among those in development. Contact Greg Connors (919.998.2000).
Burlington – TriPath Imaging, Inc. (NASDAQ: TPTH, www.tripathimaging.com), has released a new test that detects certain biochemical markers indicating cervical cancer. The U.S. release of TriPath’s slide-based analyte specific reagent (called “ProEx C”) comes after the publishing of an article detailing potential cancer markers. Contact Stephen P. Hall (336.290.8721).
RTP – Oriel Therapeutics Inc. (www.orieltherapeutics.com), an inhaled drug delivery company, has received a U.S. patent for multi-dose dry powder drug packages for holding pharmaceutical grade formulations of inhalable dry powder substances. The patent covers aspects of Oriel's multi-dose dry powder inhaler technology that provides a package to apply vibration directly to a powder drug as well as a design for delivery of drugs. Oriel currently has 11 U.S. and associated international patent applications pending for a variety of aspects of its technology. Contact Eric McLean (919.929.0225).
Morrisville – BioDelivery Sciences International, Inc. (NASDAQ: BDSI, www.biodeliverysciences.com) has submitted a new drug application (NDA) to the FDA for “Emezine” for the treatment of nausea and vomiting. Emezine is administered by placing the dissolving tablet between the upper lip and gum, thereby delivering the drug orally as opposed to using injections or suppositories for the treatment of nausea and vomiting associated with a wide range of conditions such as surgery, chemotherapy and migraine attacks. In February 2005, BDSI completed the clinical studies required for an NDA on Emezine. Contact Mark Sirgo (919.653.5160).
Mark Your Calendar!
CED’s Entrepreneurial Excellence Awards
June 15, 2005
American Tobacco Historic District
Durham, NC
www.cednc.org/awards
Engage: Human Capital
June 29, 2005
Durham Marriott Civic Center
Durham, NC
www.cednc.org/engage
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