Health Care Services Company Announces Largest of Top Five Health Care Venture Capital Deals in December 2006 (January 18, 2007)

The top five health care venture capital deals announced during December 2006 include three medical device companies, one pharmaceutical and one health care services company. US Oncology Holdings, Inc. secured the largest round, with $150.0 million invested by Morgan Stanley Strategic Investments. As a result of this stock sale, the investor now owns approximately 14.7% of US Oncology Holdings, which is one of the largest cancer treatment and research networks in the United States. With the proceeds plus cash on hand, US Oncology is paying out dividends of $190 million to current stockholders. Israel-based Galil Medical raised the second largest sum, with $52.0 million invested by Thomas, McNerney & Partners, The Vertical Group and Investor Group Capital. Galil Medical, a pioneer in cryotherapy systems to treat cancer and non-cancerous tumors, will use the proceeds from this financing and related transactions to exit its joint venture with Oncura, and to expand its sales, marketing and clinical programs in the United States and in Europe. NeoVista, Inc., an ophthalmic device company focused on the treatment of wet age-related macular degeneration, is aiming to address the need for monthly injections and the lack of durable response to provide products that cost-effectively benefit patients. NeoVista secured $41.0 million in Series C financing from Essex Woodlands Health Ventures, MPM Capital, Versant Ventures, SV Life Sciences, The Carlyle Group and Accuitive Medical Ventures. MonoSolRx raised $38.0 million from Edward P. Bass and other investors, and will use this funding for ongoing development and business initiatives, to expand manufacturing capabilities and as working capital. MonoSolRx’s primary strategic objective is to deliver high value prescription and OTC drug targets using its proprietary thin film drug delivery technology. Ophthonix, a marketer pf advanced vision correction products that provide consumers with superior optical clarity and crispness of vision, closed its Series D financing with $35.1 million from DAG Venture Partners, Palo Alto Investors, Enterprise Partners Venture Capital, Kleiner, Perkins, Caufield & Byers, Gund Investment Corporation, InterWest Partners, Trex Enterprises and Wasatch Advisors. Ophthonix will use the funding to continue the roll-out of its Z-View aberrometer and its iZon high resolution lens for eyeglasses throughout the United States and internationally.

 

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