Three Pharmas, Two Biotechs Announce Five Largest Health Care Venture Capital Deals (December 20, 2006)

The five largest health care venture capital deals of November 2006, amounting to a combined total of $281.0 million, were announced by three pharmaceutical companies and two biotechnology companies. With the most capital committed in one round, Kalypsys, Inc., a clinical-stage company with in-house programs as well as development partnerships, secured $100.0 million in its Series C financing, from previous investors, led by Tavistock Life Sciences and including Sprout Group, CMEA Ventures and KT Venture Group. Kalypsys will use the proceeds to fund its own preclinical and clinical pharmaceutical programs in the areas of cardiovascular and metabolic diseases, pain and inflammation and oncology. The second- and third- largest deals were also announced by pharmas, including Cerenis Therapeutics, which raised $53.5 million in a Series B equity round led by TVM Capital and including participation from OrbiMed Advisors, Sofinnova Partners, HealthCap, Alta Partners, EDF Ventures and NIF SMBC Ventures. The proceeds will be used for ongoing research and clinical development of potential treatments for cardiovascular and metabolic diseases, including Cerenis’ lead compound, which is a synthetic form of high-density lipoprotein (also known as HDL, or “good” cholesterol) that mimics natural HDL. In another Series B financing, Concert Pharmaceuticals, Inc., which is developing small molecule drugs for unmet medical needs, secured $48.5 million from investors led by Flagship Ventures and including Brookside Capital Partners, New Leaf Venture Partners, Three Arch Partners, TVM Capital, Skyline Ventures, Greylock Partners and the QVT Fund. Concert intends to base its work on existing pharmaceutical knowledge and applications, transcending current capabilities for more rapid discovery and identification of new clinical agents, utilizing advanced chemical methodology to create potent, bioavailable drug candidates. In the biggest biotech deal of the month, Chiasma Inc. raised $44.0 million in its Series C financing, and will use the funding to take three programs into clinical development and to advance its core technology, which is focused on enhancing the oral delivery of proteins and small molecules and developing a solution to the issue of poor absorption with oral delivery of protein- and peptide-based drugs. Investors in Chiasma this round include MPM Capital, ARCH Venture Partners, Ofer Hi-Tech and F-2 Ventures. The other biotechnology company, Neurotech Pharmaceuticals, announced a $35.0 million Series B financing that included participation from Burrill and Company, Versant Ventures, SV Life Sciences, Omega Fund, Nexus Medical Partners, Pound Capital, Apax Partners, Merlin Biosciences, Atlas Venture, Mayflower and Avida Group. Neurotech’s technology platform has the potential to develop and deliver proteins to the back of the eye and is being used to develop sight-saving therapeutics for chronic retinal diseases; the proceeds from this round will be used for ongoing studies of its lead product in two ophthalmic indications.
 

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