July
2005 issue
Private Equity Investors Providing Life
Support To Development-Stage Health Care Companies
Publicly traded health care companies increasingly turned to institutional
investors for capital, announcing 21% of this year’s health care private
equity deals in the past 30 days.
...
Venture Capitalists Hit The Brakes, Start
Slowly In Third Quarter, After Six Months Of Steady Funding
The third quarter is off to a slow start, but during the first six months of
2005, more health care venture capital funding was committed and more deals
got done than in the year-ago period.
...
Public Equity Market
Several initial public offerings and secondaries were priced, and some
foreign-based health care companies are looking to raise capital in the
United States.
...
Merger & Acquisition Market
One $7 billion deal and some unusual deals spice up the steady flow of
health care mergers and acquisitions announced in the past 30 days, plus, a
brief look back at the first half of 2005.
...
Departments
Public Market Chart
M&A Deal Chart
Venture Capital Charts
Private Placement Charts
Notes & Briefs
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News Read the past
headlines.
Companies Mentioned in this issue: July
2005
A
A.G. Edwards p3
A.M. Pappas & Associates p14
AccuDx p8
Acusphere p12
Adams Harkness p10
Adherex Technologies p2, p8
Advanced Life Scien. p3
Air Evac Lifeteam p7
Allied Capital p7
Allion Healthcare p4
Amedisys p7
American Society of Anesthesiologists p16
AmpliMed p13
Andrx p4
Anthem Capital p14
Apax Partners p12, p14
Aspect Medical Systems p16
AspenBio p11
Auxilium Pharmaceuticals p9
Avalon Pharmac. p3
Axya Medical p12
B
BankInvest p13
Bay City Capital p14
Beecken, Petty, O’Keefe p14
Benchmark Medical p7
BioAdvance Ventures p14
BioMarin Pharmaceuticals p3
BioMed Realty Trust p3
Bionomics Limited p8
Biophan Technologies p10
Biotech Insight Ventures p13
Boston Scientific p10
BrainCells p14
Brean Murray p10
Burrill & Company p14
C
Cardiva Medical p13
Celtic Pharmaceutical p12
ChemGenex Pharmaceuticals p4
Cheng Xin Venture Capital p12
China Medical Technologies p4
Citigroup p4
Cohen & Steers p9
CompassCare p14
Corautus Genetics p9
CoreValve p1, p14
Cosmos Alliance p14
Critical Therapeut. p3
CryoCor p3
CSFB p3
CV Therapeutics p3
Cyberonics p16
D
D&K Healthcare Resources p6
Dai Nippon Printing p14
Dansk Erhervsinvestering p13
Dansk Kapitalanlaeg p13
Dawson James Securities p8
dbMotion p13
Delcath Systems p3
Desjardins Venture Capital p9
Deutsche Banc Securities p9
Dundee Securities p9
DW Healthcare Partners p13
E
EarlyBirdCapital p4
Electro-Optical Sci. p3
Endologix p10
ev3 p4
Exagen Diagnostics p13
F
First Albany Capital p4
Flywheel Ventures p12
Fonds Bio-Innovation p9
Friedman, Billings, Ramsey p3
Fuji Photo Film p14
Fusion Capital p10
Future Capital p14
G
GANYMED Pharmaceuticals p14
Gemini Israel Funds p13
Genesis Pharmaceutical p7
Genomic Health p3
Gentium p4
GlaxoSmithKline p2
Glenmark Pharmaceuticals p14
Global Pharmaceutical Corporation p2
Goldman Sachs p4
Grant Life Sciences p8
H
Hans-Werner Hector p13
Harbinger p13
Haven Eldercare p7
Health Net p16
HealthCap p12, p14
HemoSense p3
HepaLife p10
Hopewell Venture p14
Housecall Medical Resources p7
HPC Capital Management p11
HSBC p2
Hunt Holdings p12
I
I-Bankers Securities p4
Iliad Chemicals p8
Immune Control Inc. p14
Immunicon Corporation p9
IMPAX Laboratories p8
Impax Laboratories p1
IMPAX Pharmaceuticals p2
Implant Sciences p3
IMS Health p6
InnovationsKapital p13
INNOVIVE Pharmaceuticals p13
inventages venture capital p13
InvestBio p13
Ithaka Acquisition p3, p4
iVOW p8
J
J.P. Morgan Securities p3
Johnson & Johnson p2
JSR p14
K
Kauffman Foundation p12
Keryx Pharmaceutic. p3
KfW Mittelstandsbank p14
Kindred Healthcare p16
L
Ladenburg Thalmann p3
Landensbank Baden-Wurttemberg p14
Lazard Freres p3
LD Pension p13
Leerink Swann p10
Legg Mason p3
Lehman Bros p3
Lighthouse Capital Partners p13
Loeb Investors p12
LTC Properties p11
Lupus Ventures p14
Lurie Investments p12
Lynx Therapeutics p2
M
Malaysian Technology Development Corporation p14
Maxim Group p4
Mayo Medical Ventures p13
McKesson p6
Medcon p6
Medical Properties Trust p3
Medical Services International p10
MedicaLogic p4
Merrill Lynch p3
Metabolic Pharmaceuticals p4
Micrus Endovascular p3, p4
Midtown Partners p9
Mitsubishi Corporation Life Sciences p14
Mohr Davidow Ventures p12
MOMS Pharmacy p4
Montgomery & Co. p10
Morgan Stanley p4
MPM Capital p14
Mutual of Omaha p16
N
Nanosphere p12
Napo Pharmaceuticals p14
Neuro Ventures p14
New Enterprise Associates p12
New Mexico State Investment Council p12
NewSpring Capital p14
North American Home Health Supply p4
Novavax p9
Novo p13
Nutmeg Group p10
O
Olympus p14
Orqis Medical p13
Oxford Bioscience p14
Oxford Bioscience Partners p10
P
PacifiCare Health Systems p6
Palisades Master Fund p11
Panacea Pharmaceuticals p14
Paramount BioCapital p13
Pepscan Systems p14
Peptimmune p12
Peregrine Pharma- ceuticals p8
Pfizer p6
PharmaMar p2
PhotoMedex p3
PhytoMedical Technologies p10
Pierre Fabre Group p7
Pitango Venture Capital p13
PPM Oost p14
Primera Biosystems p14
Prism Venture Partners p12
Procyon Biopharma p9
Q
QLT Inc. p3
R
RegeneRx Biopharmaceuticals p8
Reliant Pharmaceuticals p7
Rigel Pharmaceutic. p3
Roth Capital Partners p4
S
Sanderling Ventures p13
Santaris Pharma p13
SAP p12
Seroba Bioventures p13
SG Cowen p2
Shin-Etsu Chemical p14
Sirna Therapeutics p10
Societe Innovatech p9
Sofinnova Partners p12
SoLapharm p13
Solexa p2
Solstice Capital p13
Soteria Imaging p7
Spear Dermatology Products p1
Spear Pharmaceuticals p1
Specialty Pharmacies p4
Spectrum p3
Sprout Group p10
Spryance p14
SRK Management p12
Stanford University Medical Center p16
Stifel, Nicolaus p3
Stockton Partners p13
Summit Partners p12
Summit Partners Venture Capital p12
Sycamore Ventures p13
Symmetry Medical p3
Synthetic Blood International p11
T
Tandem Labs p13
Taylor Madison p9
Technofund Flevoland p14
Technology Partners p14
TeleVox Software p16
Telzuit Medical Technologies p9
Therion Biologics p1
Thomas, McNerney & Partners p13
Thomas Weisel Partners p4
Tokio Marine & Nichido Fire Insurance p14
Torax Medical p13
Transgene p10
Triad Hospitals p3
Triax Holdings p1
TriMed Research p13
Trinity Biotech p4
Tullis Dickerson p13
U
U.S. Spine p13
UBS p3
UBS Investment Bank p4
United States Food and Drug Administration p16
UnitedHealth Group p6
University of California at Irvine p16
V
Valentis p8
Valley Ventures p13
Venrock Associates p10
Ventas p3
Venture Incubator p14
Vertex Venture Capital p13
Vicuron Pharmaceuticals p6
Village Ventures p13
Vitae Pharmaceuticals p14
VNU p6
VRP Rheinland- Pfalz p14
vSpring Capital p13
W
W.I. Harper p13
Wachovia Capital Markets Trust p3
Wageningen Business Generator p14
Wasatch Venture p13
WebMD Corporation p4
WebMD Health Holdings p4
WellCare Plans p3
Wellpoint p16
Westminster Securities p11
William Blair p4
Windrose Medical Properties Trust p2
WR Hambrecht p3
Wyeth p12
Z
Zeltia p2 |
Private Equity Investors Providing Life
Support To Development-Stage Health Care Companies
Apparently the public is becoming less inclined to buy
stock in technology platforms, product candidates and pipeline compounds,
but institutional investors are keeping the development dream alive at
many health care companies. Publicly traded health care companies raised
more private equity during the past 30 days than during the two prior
30-day periods put together. From June 16 to July 15, 2005, a total of
$466 million was committed to fund 29 private placements in the health
care sectors, representing 21% of all private equity funding raised by
public health care companies so far this year. In the past four weeks,
total spending on health care private placements increased by 77%,
compared with the preceding four weeks, and by 29%, compared with the
year-ago period.
Fewer than half of the public companies that announced
private equity deals in the past four weeks are currently marketing a
product or service. In the same four weeks, 16 development-stage health
care companies secured equity financing to fund research, clinical
testing, FDA applications and in some cases, commercialization. The three
largest deals of the month include a REIT, a biotech based in Europe and a
pharmaceutical company. Impax Laboratories (NASDAQ: IPXLE)
announced the largest deal of the month, for $75 million, but under
unusual circumstances.
Due to a technical default, specifically, IPXLE’s failure
to file form 10-K on time with the SEC, a holder of debentures previously
issued by Impax declared the $95 million principal, plus accrued interest,
due and payable immediately. The proceeds of this placement will be used
to repay that debt.
Impax currently provides drugs and drug delivery
technologies to the health care industry, and is also developing
brand-name drugs. The company was formed in 1999 as a result of the merger
between Global Pharmaceutical Corporation and IMPAX
Pharmaceuticals. The technology-based specialty pharma is focused on
creating novel reformulations of existing products, including
controlled-release generic versions of brand-name drugs and its own
brand-name drugs that are modified, differentiated or controlled-release
versions of substances that are currently on the market.
Zeltia SA (PK: ZLIXF) secured $54 million in
private equity financing, the second-largest health care private equity
deal announced in the past 30 days. Zeltia is a biotechnology company,
headquartered in Madrid, Spain, with five subsidiaries including
PharmaMar, which was founded in 1986. The proceeds of the financing
will be used to continue the research, development and commercialization
efforts surrounding PharmaMar’s pipeline of cancer products. HSBC
acted as the sole book-running manager for the transaction.
PharmaMar, a biopharma that is focused on deriving
therapeutic anti-cancer compounds from marine organisms, does not yet have
products on the market. However, PharmaMar does have a compound that it
co-developed with Johnson & Johnson (NYSE: JNJ), called Yondelis,
in Phase II/III trials for solid tumors. Other compounds in PharmaMar’s
pipeline target other types of tumors, cancers and severe psoriasis.
Windrose Medical Properties Trust (NYSE: WRS), with $52.5 million,
closed the third-largest health care private placement in the past 30
days. Windrose Medical Properties, a REIT based in Indianapolis, Indiana,
has a portfolio of properties located primarily in the Southeastern,
Southwestern and Western United States. Windrose is focused on acquiring
medical office buildings, specialty hospitals, outpatient and diagnostic
facilities, ambulatory surgery centers and other health care facilities.
Not long after securing $9 million in private equity, Adherex
Technologies Inc. (AMEX: ADH; TSX: AHX), a North Carolina-based
biopharma, announced it has entered into a licensing and development
agreement with GlaxoSmithKline (NYSE: GSK) valued at $15 million.
Plus, GSK invested an additional $3 million in ADH’s existing private
placement. ADH is in-licensing an oncology product from GSK and GSK has
the option to license ADH’s lead biotechnology compound.
In an update, Solexa, Inc. (NASDAQ: SLXA) reported the completion
of the $32.5 million financing it announced three months ago, securing the
final $24 million upon stockholder approval. SG Cowen served as the
exclusive placement agent for the transaction. Solexa, a biotech
headquartered in the United Kingdom, merged with Lynx Therapeutics
earlier this year. Currently SLXA is developing DNA sequencing systems to
comprehensively and economically analyze whole genomes. |
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