Healthcare Corporate Finance News Monday Morning Review

Ablynx NV, a biopharma, raised $50 million and Codexis, Inc., a biotech, raised the two largest publicly announced health care venture capital transactions last week. Ablynx NV, based in Belgium, is focused on the discovery and development of Nanobodies, a novel class of antibody-derived therapeutic proteins with potential applications in Alzheimer's, inflammation, thrombosis and oncology. The proceeds of this Series C financing will be used to fund operations through at least mid-2008. KBC Private Equity, S.R. One (U.K. and U.S.A.), Abingworth Management (U.K.), Alta Partners, Biotech Fund Flanders, Gilde Healthcare Partners, GIMV, Sofinnova Partners, VIB were the investors in Ablynx this round. Codexis, Inc. applies proprietary synthetic chemistry technologies to create improved versions of small molecule therapeutics and has its own platform for generating new intellectual property for pharmaceutical companies. The proceeds of this Series D financing will be used to expand its research and development capabilities. The investors in Codexis this round include Bio*One Capital, CMEA Ventures, Pequot Ventures, Chevron Technology Ventures and Maxygen, Inc.

A few companies filed for initial public offerings last week, but none were in the health care sectors. MBF Healthcare Acquisition Corp., which just amended its filing, is one of three health care SPACs that filed for an IPO during July. Two more SPACs targeting a health care business have filed for an initial public offering during August, including Trans-India Acquisition Corp., with I-Bankers Securities as the underwriter, and Harbor Business Acquisition Corp., with HC Wainwright as the underwriter.

Inverness Medical Innovations, Inc. (AMEX: IMA) announced one of the largest private placements health care has seen in some time, an equity offering of $151.3 million being sold to a syndicate of 17 investors. Inverness Medical Innovations is a global manufacturer and supplier of rapid diagnostic products for consumer and professional markets, and intends to use the net proceeds from this offering, $145.4 million, for repaying indebtedness, making future acquisitions and other general corporate purposes. The next-largest private placement announced in health care last week was $20 million, raised by Pharmacyclics, Inc. (NASDAQ: PCYC), a pharmaceutical company building a pipeline in oncology and other diseases based on a wide range of targets, pathways and mechanisms, announced an equity financing commitment from the investor. Its lead product has completed Phase III clinical testing in lung cancer brain metastases and is currently in several Phase I and II clinical trials for other indications, while its other product candidates are in earlier stages of development.

The largest mergers and acquisitions announced by health care companies last week include a $150 million deal that has Crawford and Company acquiring Broadspire Services, a third-party administrator of managed care services, from Platinum Equity. And in a deal valued at $121.6 million, NeuroSearch AS is acquiring A Carlsson AS, which is developing biopharmaceuticals for the treatment of Central Nervous System diseases.

Click here for a FREE TRIAL to the Healthcare Corporate Finance News

VC Blog Archive

Back to top