Biopharmas Announce Top Three VC Deals In February 2007 (March 15, 2007)

Three biopharmaceutical companies, Targanta Therapeutics, Omeros Corporation and Immatics Biotechnologies, announced the three largest health care venture capital deals during February 2007, raising $185.0 million. Dr. Gregory Demopulos, the CEO of Omeros, appears in the March issue of Healthcare Corporate Finance News (www.hcfnews.com), discussing the funding that Omeros has received recently, its lead product candidate, and also some history and near-term plans. In an oversubscribed Series E financing totaling $63.0 million, Omeros Corporation closed on funding from Aravis Ventures, ARCH Venture Partners, American Financial Group, Grosvenor Funds, Novartis Venture Fund, Southern Cross Capital, Stanley Medical Research Institute, Trevi Health Ventures and WRF Ventures. This round provides Omeros with ample funding to complete the Phase III program for its lead product, which is for use during arthroscopic surgery to decrease inflammation and pain, as well as to advance other product candidates into the clinic and to further develop its research pipeline. In the largest deal of the month, Targanta Therapeutics secured $70.0 million in its Series C financing, from Brookside Capital, Skyline Ventures, Radius Ventures, OrbiMed Advisors, Seaflower Ventures, VenGrowth Advanced Life Sciences Fund and the Canadian Medical Discoveries Fund. Targanta is developing antibacterial compounds and intends to utilize this capital to prepare and submit a new drug application for its lead product candidate, oritavancin, for the treatment of complicated skin and skin structure infections. With the proceeds from a $52.4 million round, Immatics Biotechnologies is pursuing two parallel Phase II clinical studies of its two lead product candidates and expanding its pipeline of immunotherapeutic substances, based on tumor-associated peptides designed to stimulate the immune system against cancer cells. Immatics raised this funding from Wellington Partners, 3i Group, DH Capital, OH Beteiligungen, National Technology Enterprises and KfW. Also among the largest deals announced during February, NextWave Pharmaceuticals, a specialty pharma company, raised $40.0 million from Sofinnova Ventures and Vivo Ventures, plus two other large investors who, we were told, have asked to remain unnamed for now. Focused on the development of pharmaceuticals for the pediatric marketplace, NextWave Pharmaceuticals is currently co-marketing a third generation cephalosporin product, as well as its own first product, a behind-the-counter iron supplement, and is about to launch a prescription iron and fluoride combination. This was NextWave’s third round. Finally, a biotechnology company, Proacta, garnered investments from Clarus Ventures, Delphi Ventures, Alta Partners, GBS Ventures and the New Zealand Venture Investment Fund, totaling $35.0 million. Proacta is taking its lead compound through the next phase of clinical development, as well as supporting the discovery and development of additional compounds, with the proceeds from this Series B financing. Targeting unmet needs in oncology, Proacta’s initial focus is on developing selectively activated prodrugs for use in hypoxic conditions in solid tumors.

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