Venture Update Vol. IX, #8, September 2005
Done Deals
Pittsboro – Biolex (www.biolex.com), a clinical stage protein therapeutics company, has raised an oversubscribed $36 million Series B round led by Polaris Venture Partners, with participation from existing investors Intersouth Partners, Quaker BioVentures, Johnson & Johnson Development Corporation, Mitsui and Co. Venture Partners and Kitty Hawk Capital. Biolex will use the funds for clinical development of its lead product candidates and for expansion of its biomanufacturing capabilities to support internal drug development and partner protein programs. Contact John Irick (919.542.9901).
Morrisville – etrials Worldwide, Inc. (www.etrials.com), a provider of eClinical software for the clinical trial process, has merged with Tampa-based CEA Acquisition Corporation (CEAC), a special purpose acquisition corporation. When the merger closes, etrials will receive up to $21 million in cash from CEAC to expand internationally and pursue other acquisitions. Retaining its “etrials” name, the company will be a wholly owned subsidiary of CEAC, and etrials shareholders will also own a majority interest in the publicly-traded parent company CEAC. Contact Lorra Gosselin (919.653.3400).
Morrisville – Regado Biosciences, Inc. (www.regadobiosciences.com) has closed a $20 million Series B co-led by Domain Associates and Quaker BioVenture, with participation from The Aurora Funds and individual investors. The financing will enable Regado to enter into a new phase of growth. A spinout of Duke University Medical Center, Regado is developing antidote-controlled therapeutics. Contact Doug Gooding (919.313.0150).
RTP – Ziptronix (www.ziptronix.com), which is commercializing a three-dimensional integrated circuit semiconductor technology, has raised a $7.2 million Series C from previous investors, including Alliance Technology Ventures, Grotech Capital, Intersouth Partners, Research Technology Ventures, RTI International and NC IDEA. Ziptronix will use the funds to expand sales and marketing initiatives and to explore additional partnerships. Contact Phil Nyborg (919.459.2424).
Raleigh – Ablatrics, Inc., a medical device company focused on minimally invasive treatment solutions for Atrial Fibrillation, has closed a $5.5 million Series A led by Intersouth Partners. Also participating in the deal were Massey Burch Ventures and Tall Oaks Capital. Ablatrics, which previously received seed funding from Intersouth Partners, will use the recent financing to support product development and commercialization. Contact Suzanne Cantando (919.493.6640 x108).
Chapel Hill – Hemocellular Therapeutics (www.hemocellular.com) has raised $2.5 million from individual investors, bringing its total raised to $3.5 million after converting $1 million from an earlier round. This financing, in conjunction with a recent federal government appropriation for the Fiscal 2005 budget year, will help Hemocellular accomplish major milestones and ramp up to another round of funding. Hemocellular, which is a spin-out of UNC-Chapel Hill, is developing a bioengineered human platelet to stop internal bleeding. Contact Stan Eskridge (919.341.0303).
RTP – Integrian, Inc. (www.integrian.com), a mobile digital video company, has acquired Digital Safety Technologies, Inc. (DST), a provider of digital video surveillance systems, for an undisclosed amount. Integrian will use intellectual property and technology assets from the acquisition to broaden current product offerings in both public safety and transportation markets. Integrian’s digital video solutions allow customers to capture, tag, archive and search digital video for various security purposes. Contact Robin Potts (919.472.5022).
Durham – Motricity, Inc. (www.motricity.com), a global provider of mobile content and solutions, has acquired California-based M7 Networks (www.m7networks.com) for an undisclosed amount. M7 will become a division of Motricity and will maintain an office in California. Motricity also announced plans to move its global headquarters to 70,000 square-feet of space in downtown Durham in mid-2006. Contact Les Hamashima (919.287.7345).
Chapel Hill – NDL (www.ndl.com), a developer of 3D graphics technology for the computer and video game industry, has merged with California-based Emergent Game Technologies (www.emergentgametech.com), a developer of video game tools and online infrastructure, for an undisclosed amount. The combined company, Emergent Game Technologies, will deliver comprehensive tools and technologies for game developers. Emergent will retain sales and marketing operations in Chapel Hill. Contact John Austin (919.929.2917).
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On The Up
WiMAX Systems, Inc.
Research Triangle Park, NC
The demand for wireless Internet access and its services continues to steadily increase, according to several industry reports. One key element driving the explosive growth in wireless Internet access is “WiMAX” technology an international standard enabling low cost, high-speed, high-quality broadband internet services across broad geographies.
To capture this rapid trend, RTP-based WiMAX Systems (www.wimaxsystems.net) is developing products to help individuals, businesses and governments achieve wireless access with more simplicity. Founded in 2004, WiMAX Systems has developed technology that merges wide-area wireless, private networks and Internet services into one low-cost solution.
Using innovations such as “critical path” software and hardware components, WiMAX Systems ensures broadband wireless networks are efficient, reliable and scalable when executing demanding commercial voice, data networking and media applications.
With a focus on building upon the substantial foundation of the WiMAX standard, WiMAX Systems offers infrastructure products that accelerate delivery of subscriber services, advance operating efficiency, and offer quality of service advantages for commercial, public and private operators.
WiMAX Systems, which presented at CED’s Venture 2005 conference, offers a “single package” solution combining all on-premise services that are required by WiMAX operators. Also, the device setup is completely automated behind the scenes, allowing the end user to change locations and still receive the same services in the same way.
With services beyond just internet access, the company has the potential and technology to extend IP-based communication to large numbers of unserved and underserved people, which poses both commercial and social benefits.
“Broadband wireless will be the most exciting thing to happen in communications over the next decade, and WiMAX is the key technology,” said WiMAX Systems’ CEO David Dowse. “At WiMAX Systems, we have a strong product vision and we have assembled an excellent team. The company is ready to play a major role in shaping this market over the coming years.”
WiMAX Systems is currently structuring a significant financing round. Contact David Dowse (919.272.1719).
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New Developments
Raleigh – North Carolina has established an SBIR/STTR Matching Funds Program and an Incentive Program to be administered by the North Carolina Board of Science and Technology (www.ncscienceandtechnology.com). The incentive and matching programs were included in the North Carolina state budget, recently signed by Gov. Easley. The program will match Phase I awards 1:1 with 75% paid at the time of award and 25% at completion of the project report (resulting in up to $100,000 in matching funds). The incentive program will reimburse companies for 50% of proposal prep costs up to $3,000. State officials are working to finalize specifics for both programs. Contact Bob McMahan (919.733.6500).
Durham – Square 1 Bank (www.square1bank.com), a new venture bank targeting start-up technology, life sciences companies, and venture capital firms, has officially begun operations in key technology markets nationwide. The bank chartered in North Carolina with a presence in Silicon Valley, Boston, Durham, Austin, San Diego and Seattle will provide banking services for emerging companies and venture firms. Square 1 has raised $105 million from private investors to fund its nationwide launch. Contact Peter Meath (919.314.3055).
Zebulon – GlaxoSmithKline (www.gsk.com) is expanding its manufacturing facility in Zebulon, creating approximately 200 new jobs over the next four years and investing about $92 million in the North Carolina community. GSK, which has co-U.S. headquarters in the RTP, will remodel its Zebulon facilities to accommodate new production. Contact Lauren Gregg (919.733.5612).
RTP – The Council for Entrepreneurial Development (www.cednc.org) has joined a statewide effort to support North Carolina’s rural and minority entrepreneurs. CED is a project team member in the Rural Entrepreneurship Development System (Rural EDS) for North Carolina. This statewide project, led by the N.C. Rural Economic Development Center, is the result of a $2 million grant awarded by the W.K. Kellogg Foundation in April 2005 to create a comprehensive entrepreneurship development system to serve rural and minority entrepreneurs in low-wealth areas of North Carolina. Contact Robert Albright (919.549.7500 x123).
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In the Pipeline
RTP – Icoria, Inc. (www.icoria.com) has received a $1.2 million Phase II SBIR contract from the National Institute of Environmental Health Sciences to discover biomarkers for drug-induced liver injury. This research could lead to the development of new diagnostics for identifying hepatotoxicity and the progression of liver disease. Contact Brian Ritchie (212.845.4200).
RTP – NOBEX Corporation (www.nobexcorp.com) has signed a global research agreement with India-based Biocon (www.biocon.com) to jointly develop an oral peptide product for the treatment of cardiovascular disease. The collaboration combines the proven peptide production capabilities of Biocon with the proprietary oral peptide-delivery technology of Nobex. Contact Christopher Price (919.433.2232).
Raleigh – Salix Pharmaceuticals (www.salix.com; NASDAQ: SLXP) announced that a medical journal has published a study showing Salix’s Colazal ulcerative colitis treatment may reduce or prevent inflammation resulting from radiation treatment for prostate cancer. Rsearchers found that patients taking three 750 milligram capsules of Colazal every day for five days before radiation treatment had reduced symptoms of radiation-induced ulcers and inflammation. Contact Michael Freeman (919.862.1000).
RTP – Raindrop Geomagic (www.geomagic.com) has received a Phase II research grant from the National Science Foundation (NSF) for digital shape sampling and processing technology. Under Phase I of the NSF grant, Raindrop Geomagic used Morse Theory research to create a structured representation of a computer model by distinguishing between flat and highly curved feature surfaces. Expanded research in Phase II will include work to automatically construct a natural structure of the resulting CAD model, identify different surface attributes and fillet types, and provide a more efficient and automated process for creating surfaces with high accuracy and smoothness. Contact Bob Cramblitt (919.481.4599).
Raleigh – Respirics Inc. (www.respirics.com), a respiratory drug delivery and development company, has received 510(k) clearance from the FDA to market MD Turbo, an accessory device for use with pressurized meter dose inhalers. The device, which is scheduled for commercial release later this year, has a “breath-actuation” feature that can reduce the timing errors many patients experience when they attempt to use their inhalers manually. Contact William Nadel (919.789.4220).
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Mark Your Calendar!
CED's InfoTech 2005
October 12, 2005
Sheraton Imperial Hotel & Convention Center
RTP, NC
www.cednc.org/infotech
CED's Opportunity 2005
November 10-11, 2005
Hilton Wilmington Riverside
Wilmington, NC
www.cednc.org/opportunity
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