November
2006 issue
Out Of The Waiting Room, Please - Funding To
Reduce Costs, Improve Care Through Outpatient Facilities
Clinical centers established to specifically concentrate on addressing a
single disorder or therapeutic area are attracting the attention of
investors.
...
Corporate Incubation Leads To Spin-Out - Equity Round Supports Clinically
Established Delivery Technology
Although five health care companies priced IPOs during October, only one saw
its stock value increase significantly in after-market performance.
...
Mergers & Acquisitions
Health care mergers and acquisitions continued at a steady pace, and more
deals than usual came with prices during the month of October.
...
Venture Capital Market
The companies that raised larger rounds this month include a medical
malpractice insurer and a medical waste management company.
...
Private Equity Market
Biopharmaceutical companies raised some of the larger private equity
financings announced during October, and one pharma collected a milestone
payment as well as a funding round.
...
Notes & Briefs
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headlines.
Companies Mentioned in this issue:
November 2006
3i Group p7, p8
3M Company p5
5AM Ventures p8
A
AAIPharma p8
Abingworth Management p7
Abingworth Mgmt. p8
ABIOMED p3
ABN AMRO Capital Life Sciences p7
ABN AMRO Life Sciences p8
Accentia Biopharmaceuticals p10
Acchillion Pharmaceuticals p6
Achaogen p8
Acorda Therapeutics p10
Action Pharma p8
ActivBiotics p3
Advent Ventures p8
AGI Dermatics p8
Allied Waste Industries p8
Alsius p5
Alternative Behavioral Services p6
Alvarado Hospital Medical p5
ALZA Corporation p1
Amedisys p3
American Access Care p4
Amsterdam Molecular Therap. p8
Amyris Biotechnologies p8
AngioDynamics p5
AnorMED p5
Apjohn Ventures p8
Aradigm p3
Aravis Venture p7
Arcturus Capital p8
Arrowhead Research p8
Asthmatx p3
AstraZeneca p12
Atrium Biotechnol. p3
Avantis Medical Systems p8
Avista Capital Partners p8
AXA Private Equity p7
Axia Health Management p5
B
Beckman Coulter p5
Berna Products p5
BFI Medical Waste p8
BIOAM/Bioamgestion p7
Bioenvision p3
Biofisica p8
Biomira p5
Biotrace International p5
BioVex Gr p3
Boehringer Ingelheim p5
Borealis Infrastructure p5
Boston Scientific p8
Bristal p5
Brontes Technologies p5
Browning Ferris Industries p8
Burrill & Company p7
BZ Bank p7
C
Cadence Pharmaceu. p3
Caisse de Depot et Placement du Quebec p7
California Clinical Trials p5
Cambrex p5
CambridgeSoft p8, p9
Canaan Partners p7
Caremark Rx p6
Carrick Institute p12
Catalyst Pharmaceut. p3
CB Health Ventures p7
CDC Entreprises Innovation p7
Cell Therapeutics p3
Center for Neuroprosthetics and BioMEMS p12
Center for Untethered Healthcare p12
Centers for Disease Control and Prevention p4
Charles River Labor. p5
Chart Venture Partners p8
Chartwell Seniors Hsg. p5
Chattem p5
CHL Medical Partners p9
Chronicity p1
Chrysalis Ventures p1
CIBC p3
Citigroup p3
Clarient p8
CNF Investments p8
CNS p5
CoDa Therapeutics p8
Cogene Biotech Ventures p7
Connetics p5
Cowen & Co. p3
Craig-Hallum Capital p3
Credit Agricole Private Equity p7
Credit Suisse p3
Crucell p5
CVS p6
Cypress Group p9
Cytheris p7
Cytyc p5
D
Danaher p5
Dawson James p3
Derma Sciences p3
DFJ Mercury p8
Diffusion Pharmaceuticals p8
DoctorsDirect.com p8
Domain Associates p8
Domain Venture Partners p8
Drug Royalty Corp. p5
Dynavax Technolog. p3
E
EarlySense p8
Edison Venture p8
Efficas p8
eHealth, Inc. p3
Eli Lilly and Company p4
Emergent BioSolut. p3
Emeritus Assisted Lvg. p5
Endo Pharmaceuticals p5
EnVivo Pharmaceuticals p8
Erasmus Louisiana Growth Fund p7
Esperance Pharmaceuticals p8
Etgar Challenge Fund p8
Exelixis p3
F
Fibromyalgia and Fatigue Centers p2
Fidelity Biosciences p8
Finistere Partners p8
First Albany p3
Flagship Ventures p7
Fleming Family & Partners p8
Forbes Medi-Tech p5
Forward Ventures p7
FoxHollow Technol. p3
Fresenius Medical p5
Friendship Village Center p5
G
GE Healthcare Financial Services p8
Genaco Biomedical p5
Gentium p3
Genzyme p5
Geron p3
GetWellNetwork p8
Gilead Sciences p5
GlaxoSmithKline p5
Global Life Science Ventures p8
Grand Angels p8
Great Point Partners p10
Grosvenor Funds p8
Growth Foundation p8
H
Hansen Medical p3
Harborside Healthcare p5
HBM BioCapital p8
HBM BioVentures p8
HBM Partners p1, p7
Health Care Ppty. Inv. p3
Healthcare Brands International p7
Healthcare Svcs. Grp. p3
HealthCare Ventures p7
HealthSpring p3
Healthways p5
Helica Instruments p5
HemoSense p3
Highland Capital Partners p8
Hippo Ventures p8
HLM Venture Partners p8
Hollywood Medical Ctr. p5
Horizon Bay Management p5
HSBC p3
Hunt BioVentures p7
I
Icos p5
Imperial Innovations p8
InforSense Limited p8
InfuSystem p5
InnovationsKapital p8
Innovative Biosensors p8
Insception Biosciences p8
Insert Therapeutics p8
IntegriChain p8
Intelligent Medical Implants p8
Investor Growth Capital p7
Ithaka Acquisition p5
Ivivi Technologies p3
J
JMP Securities p6
Johnson & Johnson p1
JPMorgan p3
K
Keller Group p5
Khosla Ventures p8
Kleiner Perkins Caufield & Byers p8
L
LAB International p5
Lazard Capital p10
LeMaitre Vascular p3
Lexicon Genetics p10
LM Partners p10
Logical Images p8
Lombard Odier Darier Hentsch p7
Long River Ventures p8
Lonza Group p5
Louisiana Fund I p8
LSP BioVentures p8
Lumenis Limited p10
Lumigen p5
M
Macroflux Corporation, p1
Marcus & Millichap p5
Maxim Group p3
McNeil Pediatrics p4
MDS Capital p7
MedCath p3
MEDecision p3
Medicus Insurance Holdings p7
MedImmune Ventures p7
MedPointe p9
MedServe p8
MedVentive p8
Memory Pharmaceuticals p10
Merck & Co. p5
Merrill Lynch p3
Merriman Curhan Ford p10
MMV Financial p8
Montreux Equity Partners p8
Morgan Stanley p3
Morgenthaler Ventures p7
Morphotek p7
MPM Capital p10
mtm laboratories p8
MultiCell Technol. p3
Murphree Venture Partners p7
MVM Limited p7
Myogen p5
N
Nabi Pharma. p5
Nanogen p5
NAPC p5
National Association of Medical Sales Representati p12
National Dentex p5
Natus Medical p5
NContact Surgical p8
New Enterprise Partners p1
Newbridge Secs. p3
NGN Capital p8
NightHawk Radiology p3
NJTC Venture Fund p8
NLV Partners p7
Nomura International p11
Nomura Phase 4 Ventures p1
Northwest Kinetics p5
Northwestern University p12
Novare Surgical Systems p8
Novartis p4
Novartis Venture Fund p7
NovImmune p7
Novo Nordisk p7
NuScribe p5
NuVasive p3
O
Oakwood Medical Investors p8
Ofer Hi-Tech p10
Olympic Medical p5
Oncobionic p5
Orthologic p3
Oxford Bioscience Partners p7
P
PAREXEL p5
Parkway Regional Medical p5
Pharmaca Integrative Pharmacy p8
Pharmacopeia p10
PharmaForm p5
Pharmion Corporation p1
Pictet Private Equity Investors p7
Piper Jaffray p3
Plexxikon p5
Plymouth Health p5
Point Judith Capital p8
Posit Science Corporation p12
Prolacta Bioscience p8
ProlX Pharmaceuticals p5
ProNAi Therapeutics p8
ProSeed Venture Capital p8
Protalex p3
Psychiatric Solutions p5
Public Health Trust p5
Punk, Ziegel. p3
Q
QIAGEN p5
R
Raymond James p3
RBC p3
Regency Care p5
Roche Holding p5
Rock Maple Ventures p7
Rodman & Renshaw p10
RxKinetix p5
S
Sadra Medical p8
Santhera Pharmaceuticals p8
Schering-Plough p5
Schroder Investment Management p8
SHG Holding Solut. p3
Shire plc p4
Sirna Therapeutics p5
Sofinnova Partners p7
South Broward Hosp. p5
Spark Capital p8
SR One p7
StatSure Diagnostic p3
Stericycle p9
Stiefel Laboratories p5
Stifel Nicolaus p3
Sun Healthcare p5
T
T2C2/Bio2000 p7
TA Associates p4
Takeda Pharmaceutical p5
Temasek Holdings p10
Texas Pacific Group p5
Themelios Venture Partners p8
TheraPei Pharmaceuticals p5
Thermage p3
Thomas Weisel Partners p6
Thoratec p5
Ticonderoga Capital p8
Treemont Retirement p5
Trevi Health Ventures p8
Trubion Pharmaceut. p3
Tudor Investment Corp. p8
U
UBS p3
Unilever Technology Ventures p8
Urigen p5
Uroplasty, Inc. p3
V
Valentis p5
Valhalla Funds p8
VaxInnate Pharmaceuticals p7
Vemics p5
Vical Incorporated p10
Viragen p3
Vision Systems Limited p5
Vision-Ease Lens p3
W
Wachovia p3
WHI Group p8
Worcester Polytechnic Institute p12
X
Xencor p7
Xenon p5
Xthetix p8
Z
Zen Investments p7 |
Corporate Incubation Leads To Spin-Out -
Equity Round Supports Clinically Established Delivery Technology
Email Editor
Among the top deals of
October 2006, Nomura Phase 4 Ventures led a $75 million equity
investment in Macroflux Corporation, which is being spun out from
ALZA Corporation. The financing is divided into two tranches and
includes significant investments from New Enterprise Partners and
funds managed by HBM Partners. Also invested in Macroflux are ALZA,
which will retain an equity stake of less than 20% in the company, and
Johnson & Johnson (NSYE: JNJ), which acquired ALZA in 2001. Macroflux
is named after the Macroflux drug delivery technology ALZA had been
working on since 1999.
With an enthusiastic team of
leaders, Macroflux is poised to execute its "new strategy of delivering
new solutions for patients currently taking drugs by injection," according
to Dr. Judy Hemberger, who talked with us about the deal. Dr. Hemberger,
previously the Chief Operating Officer and a co-founder of Pharmion
Corporation (NASDAQ: PHRM), which went public in November 2003, has
been with Macroflux for about three months as its Chief Executive Officer.
She is excited about the Macroflux drug delivery system, which she
considers a "unique opportunity, because the device has proof of concept
with a number of drugs" and the technology has been used on more than 300
people already. The Macroflux system, comprised of a small titanium mesh
patch and an applicator, is intended to provide a needle-free solution for
transdermal delivery of therapeutic agents. The patch has precision
drug-coated microprojections that create superficial pathways on the skin
to allow for the transport of molecules through the surface. Dr. Hemberger
says it "meets all the attractive product criteria, in regards to
scientific, regulatory and commercial potential." Though "not focused on
one therapeutic area, at present," Macroflux is aiming to identify
molecules across the spectrum of pharmaceuticals, biotechnology and
biopharmaceuticals that can be effectively combined with its technology.
"The ultimate
goal is to have a proprietary pipeline of products based on the Macroflux
technology," said Dr. Hemberger. Part of the beauty of the Macroflux patch
is that it can be used for a broad range of applications, including
delivery of therapeutic proteins, peptides and vaccines. Macroflux will
use the proceeds from the financing for a number of clinical and
preclinical trials. The company is also considering out-licensing,
co-development and strategic arrangements within the industry.
The company’s
lead product candidate incorporates the Macroflux patch with a parathyroid
hormone that has already been through Phase I trials in post-menopausal
women. The product would be for the indication of severe osteoporosis, to
help in the bone remodeling process. Macroflux is working with the FDA to
define a Phase II trial, which is expected to be robust, including perhaps
100 or so people, and hopes to actually begin Phase II trials during the
first quarter of 2007. Currently, Macroflux is also in the process of
identifying its number two and three product candidates. Prior to the
spin-out, Macroflux was part of an internal ventures program whereby JNJ
and ALZA incubated the development of the technology and formally set up
the venture in 2004. In the next two years or so, the best-case scenario
for Macroflux Corporation would be to file for an initial public offering.
As an aside, Pharmion Corporation, which raised more than $100 million
before its IPO, also counted among its venture backers both New Enterprise
Associates and Nomura International. The price of Pharmion’s stock has
increased about 72% since the IPO.
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