Health Care Services Companies Secure Significant Equity Rounds (August 15, 2007)

For the month of July 2007, the five largest health care venture capital transactions include two deals announced by companies that provide health care services. In each of the two services deals, as well as in one deal announced by a company with a product essential to health care facilities, a single investor is providing the financing. Solantic, an operator of walk-in urgent care centers in Florida, secured $100 million to fund expansion plans that will practically double its presence in the state within a year. Welsh, Carson, Anderson & Stowe provided the financing to Solantic, which is working to establish a national brand as the leading provider of urgent care and other health care services. Behavioral Centers of America (BCA), an owner and operator of inpatient and outpatient facilities in six locations in Ohio and Texas, raised $40 million from Linden LLC. BCA is primarily focused on adolescent and geriatric adult populations, and will use the funding for ongoing expansion, including acquisitions and de novo development. TargeGen, a biopharmaceutical company, also raised $40 million, from VantagePoint Venture Partners, CTI Life Sciences Fund, Chicago Growth Partners, CDP Capital, BB Biotech Ventures, Hambrecht & Quist Capital Management, Pappas Ventures and other investors. TargeGen is focused on vascular biology and engaged in the development of small molecule kinase inhibitors that act on vascular permeability, vascular proliferation and inflammatory mechanisms common to many major diseases; its lead candidate is entering phase II trials for macular degeneration. Precision Dynamics is the company that secured the second-largest round announced during July, with $75 million from Water Street Healthcare Partners. The funding enables Precision Dynamics, a global provider of patient identification wristband systems used for multiple applications in hospitals and other health care settings, to expand its market position as one of the world's leading patient safety companies by pursuing future acquisitions. Also among the top five deals of the month, Agensys secured $41 million from Duquesne Capital Management, JAFCO, Innovis Investments, Nextech Venture, Bear Stearns Health Innoventures, Alta Partners, HBM BioVentures, Lombard Odier Hentsch & Cie, H&Q Life Science Investments and OrbiMed Advisors. With the proceeds from the Series D financing, Agensys will advance its lead program through phase II and bring three more products into clinical development by the end of 2008. The biotechnology company is developing fully-human, therapeutic monoclonal antibodies to treat solid tumor cancers.

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