March
2006 issue
Consistency In Venture Capital? Flow of
Funding Shows No Signs Of Slowing, With More Large Deals
The flow of venture capital to the health care
markets continues in full force, and one of the largest deals announced last
month was by a company that is currently focused on treatments that address
gastrointestinal disorders.
...
New Device Frees Up Diabetics, Providing
Insulin Infusion Pump Therapy Without The Tubes That Tether
In a late-stage round, one company secured funding to grow its business and
meet the demand for its first product, designed for the management of
insulin-dependent diabetes. read more
...
Public Equity Market
Two rather impressive initial public offerings were completed by health care
companies last month, among a total of six that were priced, but they were
certainly not biotechs.
...
Mergers and Acquisitions
More than a few billion dollars were committed to fund the health care
mergers and acquisitions announced during February, but there were no
billion-dollar deals in the month.
...
Private Equity Market
Publicly traded health care companies have liberal access to institutional
funding right now, and in February the largest deal was announced by a
company focused on gastrointestinal disorders.
...
Notes & Briefs
...
Key Contacts
Sign
up for a trial subscription and get the current issue!
Read more about
Healthcare Corporate Finance
News Read the past
headlines.
Companies Mentioned in this issue:
March 2006
3i Group p4
A
A Place For Mom p8
A.G. Edwards p3
A.P. Apteka p5
Abbott Laboratories p9
Abingworth p8
Access Pharmaceuticals p11
Accumetrics p8
Acologix p8
ACON p5
Acorda p3
Adheris p5
Adolor p3
Aduromed p8
Advanced Life Sciences Holdings p10
Advanced Technology Ventures p7
Aesthera p8
AEW p5
AEW Capital Management p6
Aircast Incorporated p6
Akzo Nobel p3
Alexza Pharm p3
Alliance Pharma p5
Alliance UniChem p5
Allscripts p3
Alphatec p3
Alta Partners p9
American CareSource p11
American Health Holding p12
American Medical p5
American Medical Instruments Holdings p4
American Retirement p5
American Teleradiology DayHawks p4
American Teleradiology Nighthawks p4
Amphion Innovations p8
Amphora p5
Andara Life Science p5
Angiotech Pharmaceuticals p4
Animas p9
Antares Pharma p11
Applied Visual Concepts p12
APT Pharmaceuticals p6
Aradigm p9
Arcadia Resources p5
Arena Pharma p3
ARYx Therapeutics p7
Ascent Biomedical Ventures p7
Athenagen p8
Avalon Pharmaceuticals p11
AxERx p5
B
Baker Brothers p11
Banc of America p3
Banyan Corp. p5
Battery Ventures p8
BB Biotech Ventures p7
Bear, Stearns p3
betapharm Group p4
BioMedinvest p8
Biomimetic p3
Biomira p11
Bioniche Pharma p5
BioSphere Medical p11
Biotechnology Value Fund p11
Bioxel Pharma p11
Birchmere Ventures p6
Bridgetech Holdings p3
Bristol-Myers Squibb p9
Brookdale Senior Living p6
Brookdale Senior Lvg. p5
Burrill & Company p7
Business Development Bank of Canada p8
C
CAC, LLC p8
Cadence Pharmaceuticals p9
California Technology Partners p7
Caliper Life Sciences p5
Callisto Pharmaceuticals p11
Cambrex p5
Canaan Partners p7
Canaccord Capital p10
Caprius p11
Cardica p3
CardioTech p3
Caregiver Homes p12
Carter Securities p11
Catalyst Biosciences p7
CDIB BioScience Venture p7
Ceiling Scenes p12
Cel-Sci Corporation p11
Centrus p5
Cepheid p3
Cerus p3, p5
Charter Life Sciences p8
Chelsea Therapeut. p3
Chelsea Therapeutics p11
Chicago Growth Partners p7
CHL Medical Partners p7
Chromos Molecular p11
CIBC p3
Citigroup p3
ClickFind p5
Coda Genomics p8
COPD Partners p6
Corautus Genetics p3
Corus Pharm p3
Credit Suisse p3
Curlin Medical p5
Cutanogen p5
Cyberkinetics p5
Cyberonics p12
Cystic Fibrosis Foundation p8
D
DATATRAK p5
Dawson James Securities p11
De Novo Ventures p8
Deutsche Bk. p3
dj Orthopedics p6
Domain Associates p7
Dr. Reddy’s Laboratories p4
DSI Holding Company p6
Dundee Securities p10
DuPont p2
E
eDiets.com p12
Eisai p5
Ekips Technologies p8
Elder Service Plan of the North Shore p12
EMBL Ventures p8
EndoGastric Solutions p7
EntreMed p10
EpiCept p11
Escalon Medical p5
EyeSense p8
F
Federated Kaufmann Fund p1
Ferndale Pharmaceuticals p5
Ferris, Baker Watts p3
First Albany p3
Fonds de solidarite des travailleurs du Quebec p11
Foundation Medical Partners p7
Foundation Medical Partners p7
Frazier Healthcare Ventures p7
Fresenius Medical Care p6
Friedli Corporate Finance p8
Fuji Photo Film p5
G
Generex p3
Genitope p3
Genospectra p8
GlaxoSmithKline p5
Global Pharmatech p3
Goldman, Sachs p4
GPC Biotech p10, p11
Graceway Pharmaceuticals p1, p7
GTCR Golder Rauner p1, p7
H
H&Q Healthcare Investors p11
H&Q Life Sciences p11
HealthCare Ventures p7
Healthcor Management p11
HealthSpring p4
Heartscape Technologies p8
Horizon Health p5
I
Icoria p6
Immtech p3
Inflabloc Pharmaceuticals p8
InnoCentive p8
Inovio Biomedical p3
Insulet p1
INTERCEPT p5
INVAMED Pharma p5
Inventages Venture Capital p8
Inverness Medical p5
Iomai p3
IonSpec p5
Israel Healthcare Ventures p8
J
Jacksonville Hlthcare. p5
JAFCO Life Science Investment p7
Jefferies p3
Jennison Associates p2
JMP Secs. p3
Johnson & Johnson p9
JPMorgan p3
K
King Pharmaceuticals p1
Kingsbridge Capital p10, p11
Kingswood Pines Hosp. p5
Kleiner Perkins Caufield & Byers p8, p11
L
L Capital Partners p8
La Jolla Pharm p3
Lazard p3
Lazard Capital Markets p10
Lectus Therapeutics p8
Lehman Bros. p3
Lehman Brothers p3
Life Science Angels p8
Life Sciences Partners p8
Ligand Pharm p3
M
MacroChem p11
Maverick Capital p2
Medical Ventures Corp. p11
Medsurge Medical p11
Medtronic MiniMed p9
Medwave p11
Merlin BioMed p7
Metabolex p9
Microbia p1
Misys Healthcare p5
Montreux Equity Partners p7
Moog p5
Morgan Stanley p3, p4
Morgenthaler Ven- tures p7
Morgenthaler Venture Partners p7
MPM Capital p7
MRP Group p5
Myogen p5
N
National Renal Institutes p6
Neogen p5
New Enterprise Associates p7, p8
New Life Scientific p5
NightHawk Radiology p4
Nomura Phase4 Ventures p7
Norwich Ventures p8
Novacea p3
NovaMed p5
Novartis Venture Fund p7
Novavax p11
Novel Bioventures p7
NuVasive p3
O
Oakwood Medical Investors p7
Oklahoma Life Sciences Fund p8
Optigenex p3
Oracle Hlthcr. Acq. p3
OrbiMed Advisors p1
Organon p3
OrSense p8
OrthoLogic p5
P
Pacific Growth p3
PainCare Holdings p5
Paramount BioCapital p11
Paul Royalty Fund II p10
Payerpath p5
Pequot Capital Management p8
Pequot Ventures p9
Peregrine Pharm p3
Perseus Proteomics p5
Pharming Group p10
Physicians Medical p5
Piper Jaffray p3
PLIVA Pharmaceuticals p5
Polaris Ventures p2
Precision Engineering p2
Premier Health Services p5
Preston Plaza Surgery p5
Prism Ventures p8
Progenics p3
ProQuest Investments p7
ProRhythm p8
Prospect Ventures p11
Protalex p3
PTC Therapeutics p6
Public Citizen p12
Q
QuadraMed p3
QuantRx Biomedical p11
QuatRx Pharm p3
Quester p8
R
R.W. Baird p3
Radius Ventures p8
RBC Cap. p3
RCT BioVentures p7
Remedy Therapeutics p5
Renal Solutions p6
RiverVest Venture Partners p8
Riviera Senior Living p5
Rockwell Medical p11
Rodman & Renshaw p10
Roth Capital Partners p11
RoundTable Healthcare Partners p4
S
Santarus p10, p11
SCO Capital Partners p11
SCO Securities p8, p11
Scottish Widows Investment Partnership p7
Senate Finance Committee p12
Seniorlink p12
SeQual Technologies p8
SG Cowen p10
Sigma Capital p2
Sigma-Aldrich p8
Smiths Medical p9
Sofinnova Partners p8
Sofinnova Ventures p7
Somanetics p3
Somanta Pharmaceuticals p8
Special Situations p11
Spectrum Dental p5
Spencer Trask Ventures p8
Spine Wave p7
Sprott Securities p11
Sprout Capital p7
Stereotaxis p3
Steven D. Bell & Co. p5
Summit Partners p4
Sunnylife Global p11
Sunrise Medical p6
Sunwest p5
Supernus Pharm p8
SV Life Sciences p9
Syncro Medical Innovations p8
T
Tailwind Capital p6
Tang Capital p11
Tapestry Pharmaceuticals p11
Targacept p3
Technologie Biolactis p8
Technology Partners p7
Therasense p9
Thoma Cressey Equity Partners p7
U
U.S. Food and Drug Administration p12
UBS Investment Bank p3
Uso Racional p5
V
Valera Pharm p3
Varian p5
vasopharm BIOTECH p8
VeinRx p8
Venrock Associates p2
Ventiv Health p5
Versant Ventures p1
ViRexx Medical p11
Virtual Expert Clinics p8
Vista Surgical Hospital p5
Vital Signs p3
vSpring Capital p8
W
WellCare p3
WellGen p8
World Health Alternatives p5
WR Hambrecht p3
Wulfing Holding p5
X
Xenogen p5
Y
Yasoo Health p8
YM BioSciences p10
YM Biosciences p11
|
Consistency In Venture Capital? Flow of
Funding Shows No Signs Of Slowing, With More Large Deals
Email this Editor
Health care venture capital
is flowing in a steady stream so far this year, with about the same amount
of total financing committed in each of the first two months—but the
second month saw far fewer deals. During February 2006 venture capitalists
poured a total of $685.7 million into 34 health care companies. Four deals
for $50 million or more were announced, totaling $378.5 million and
accounting for more than half the month’s activity. By comparison, in
February 2005 there were two deals announced for $50 million or more,
totaling $174 million, which accounted for about 29% of the total amount
of venture capital committed to health care that month. February saw the
same number of deals in both 2005 and 2006, but this year the total amount
of capital raised reflects an increase of 14%, compared with the previous
year. In the largest deal of the month, GTCR Golder Rauner has
committed up to $200 million in equity funding to newly formed Graceway
Pharmaceuticals, led by Jefferson Gregory, an ex-CEO of King
Pharmaceuticals.
Recently we talked with
Peter Hecht, the CEO of Microbia, Inc., an entrepreneurial pharma
that at the end of February announced a $75 million Series E financing,
the second-largest deal of the month. Mr. Hecht says this capital gives
the Cambridge, Massachusetts-based company a great deal of strategic
flexibility. Microbia had a few options to consider before deciding to
secure this equity financing, including the possibility of pursuing
partnerships or opportunities through its operating company, Precision
Engineering. Microbia has been approached by several investors, but
the Series E was led by Sigma Capital Management LLC and included
Jennison Associates, Maverick Capital and others.
Peter Hecht
says the source of Microbia’s innovation is a combination of its people
and its process. The company boasts "a very talented team of drugmakers"
and unlike most biotechnology companies is not working from a novel
technology platform. The medicines Microbia is creating though, he says,
are novel. One goal the company has is to create and commercialize
proprietary therapies targeting unmet medical needs—not an easy task, but
Microbia’s scientists are up to the challenge. Microbia, he says, is
focused on creating important new medicines while optimizing value for
shareholders. Its Precision Engineering business unit collaborates with
leading pharmaceutical and chemical manufacturers to improve the
efficiencies of existing fermentation processes or to create new
bioprocesses. Most recently, Precision Engineering announced the formation
of a collaborative research and development program with DuPont Central
Research & Development, to develop an economically viable
biomanufacturing process for a chemical currently manufactured from
petrochemical-based raw materials. DuPont is funding the joint research
and development effort.
Microbia’s
most advanced development candidates target cardiovascular disease and
gastrointestinal disorders, which the CEO says are huge market
opportunities. As many as 42 million Americans suffer from chronic
idiopathic constipation; one out of six adults in developed countries
suffers from irritable bowel syndrome; and high blood cholesterol is
linked to heart disease, the leading cause of death in the United States
and Europe.
Among the
advantages of Microbia’s compounds, the molecules are engineered for
greater safety and efficacy, and through oral administration, stay
primarily in the GI tract where they are meant to work. The most advanced
compound in Microbia’s pipeline is now in a pair of Phase IIa studies for
two separate indications. MD-1100, first in class based on novel drug
structure and mechanism, is being evaluated for the indications of IBS and
chronic constipation. The results of these studies will be available later
in the year. Microbia is also working on MD-0727 a drug candidate that
could potentially be the safest and most effective way to lower LDL
cholesterol. That compound is currently in a Phase I trial, meaning it is
being tested on healthy humans to establish safety and tolerability. Mr.
Hecht says that Microbia is able to get an early indication of the
pharmacodynamics of their drugs. For example, even in healthy volunteers,
Microbia’s compound may lower a person’s LDL cholesterol levels. He
anticipates that Microbia’s drug will be superior to the others currently
on the market for lowering LDL levels.
Since its
founding in 1999, Microbia has raised approximately $174 million in
venture funding. Founding investors in the company include Polaris
Ventures and Venrock Associates. |
|
FREE TRIAL
TO
HEALTHCARE CORPORATE FINANCE NEWS!
If you like this article, there’s lots more
waiting for you in the Healthcare Corporate Finance News.
Sign up for two free months right now! There’s no
obligation, no writing “cancel” on a bill. Happy reading!
|
|
