February 2008 issue
Successful IPO In
Emerging Specialty--
Growing Hospitalist Company Prices Initial Public Offering
Only one health care company priced an initial public offering during
January, but it was a successful one and in an emerging specialty market.
...
Imaging Space Hot During 2007--
Venture Capital Funding Increases, Continuing In 2008
Companies that are active in, or working to enter, the imaging market
attracted more funding in 2007 than previous years, and deals have already
been made in this space in 2008.
...
Public Equity Market
In addition to one IPO getting priced in January, more new filings were
submitted by health care companies that are planning to go public.
...
Mergers & Acquisitions
The month was not without its billion-dollar deals, as well as a relatively
steady stream of others, in the health care merger and acquisition market.
...
Venture Capital Transactions
Health care opportunities continue to attract venture capital funding, with
biotechnology and medical device companies announcing more than half the
deals recorded for January.
...
Private Placement Market
The first month of the year was rather slow going for private investments in
public health care companies, and the largest deal of the month was
announced by a company with a cosmetic device.
...
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:
February 2008
Symbols
3i Group p11
A
Abingworth Management p11
Accentia p15
Access Pharmaceuticals p15
Accuro Healthcare Solutions p4
Adept Technology p7
Advancis p12
Advantage Capital p11
AgeChem Venture Fund p10
Aisling Capital p10
Akela Pharma p3
Alafi Capital p9
Alder Biopharmaceuticals p10
Alliance Bernstein p9
Allscripts Healthcare p7
Alta Partners p10
Amelia Trace p8
American Capital p10
AppTec Laboratory p7
Aragon Surgical p10
Aravis Ventures p3
Arbor Surgical Technologies p11
ARCH Venture Partners p3
Arcion Therapeutics p11
Ardea Biosciences p4
Ark Therapeutics p7
Artes Medical p12
Ascension Health Group p9
Ascension Orthopedics p11
Aspen BioPharma p4
Associates p10
AthenaHealth p4
Avalon Laboratories p10
Avid Radiopharmaceuticals p9
B
Bay City Capital p10
Bayhill Therapeutics p3
Benvenue Medical p11
Bessemer Venture Partners p3
BG Medicine p3
BioAdvance p9
Biodel p4
BIOMEC p6
BioSpecifics Technologies p15
Bridge Laboratories p11
Brooke Private Equity p11
BTF B.V. p10
C
CafeScribe p16
Calistoga Pharmaceuticals p11
Caprotec Bioanalytics p11
Cardiovascular Systems, Inc. p3
Cardium Therapeutics p15
CB Health Ventures p3
Cellectar p9, p11
CellzDirect p7
Cerebellum Automation p7
Channel Medical Partners p11
Chengdu Tianyin Pharmaceutical p14
Children’s Hospital of Pittsburgh at UPMC p16
CHL Medical Partners p14
Circassia p11
Citi p3
Clarus Ventures p11
Clinipace p11, p12
CMEA Partners p11
CMEA Ventures p3
CMS p7
CoGenesys p7
Confirma p9, p11
Cowen Group p12
Cowen Healthcare Royalty Partners p12
Creadev p10
Creathor Venture p11
Credit Suisse p1
CyberHeart p11
D
De Novo Ventures p3
Deerfield Management p12
Delphi Ventures p10
Deutsche Bank Securities p3
E
Early Stage Partners p6
Eastman Kodak p9
Elbit Medical Imaging p6
ElectroSonics Medical p6
Elekta p7
Eli Lilly and Company p3
Emergent Growth Fund p12
Emergent Medical Ventures p11
Empire Asset Management p15
Endeavour Vision p10
Endotis Pharma p10
EnzySurge p11
Extended Care p7
F
Fidelity Asia Ventures p11
Fidelity Biosciences p10, p11
FinTech Laboratories p7
Flagship Venture Partners p11
Fluke Venture Partners p11
Follica p11
Food and Drug Administration p16
Franklin & Seidelmann p9
Frazier Healthcare Ventures p11
Frontier Capital p11
G
Galen Partners p6
Galpharm Healthcare p7
GE Capital Equity Holdings p6
GE Healthcare p9
Gelesis p11
Genizon BioSciences p10
Goldman, Sachs p11
Gottlieb Memorial Hospital p8
H
H. Lundbeck A/S p7
H.I.G. Ventures p10
Hatteras Venture Partners p11
Health-E-tips p16
Heidelberg Innovation p11
Heraeus Holding p7
I
IBB Beteiligungsgesellschaft p11
Imalux Corporation p6
ImmuneRegen Biosciences p15
Inclinix p11
InnerCool Therapies p15
InSightec Image Guided Treatment p6
Integral Capital Partners p10
Intel Capital p10
InterWest Partners p11
Invesco Perpetual p11
Invitrogen p7
IonGate Biosciences p11
IPC The Hospitalist Company p1
Ivy Healthcare Capital p6
J
Jefferies & Company p1
Journal of the American Medical Association p2
JW Medical Systems p7
K
Kearny Venture Partners p10
KfW p11
Kleiner Perkins Caufield & Byers p10
Knopp Neurosciences p11
Kramer Capital Partners p11
KRC Research p16
KV Pharmaceutical p7
L
Latterell Venture Partners p3
Lazard Capital Markets p3
Leerink Swann p3
Lifecore Biomedical p7
Lincoln Funds p11
Loyola p8
Lymphatix Oy p7
M
MAKO Surgical p4
Mamea p9
Mauna Kea Technologies p9
MC Life Science Ventures p10
MDS Capital p9
MedeFile p15
MediTech Advisors p6
Medtronic p11
MiddleBrook Pharmaceuticals p12
Mohr Davidow Ventures p10
Montreux Equity Partners p3
Morgan Stanley p3
Morgenthaler Venture Partners p3
MPM Capital p11
N
National Association of Inpatient Physicians p2
National HealthCare p8
Needham & Company p3
New England Journal of Medicine p2
New Enterprise Associates p11, p15
NIF SMBC Ventures p10
North American Scientific p14
NovaMed p8
NovaMed Pharmaceuticals p11, p12
Nura p3
Nymox Pharmaceutical p14
O
Oak Investment Partners p9
Odyssey HealthCare p8
Olympus Medical Systems p9
Omeros Corporation p3
ONI Medical Systems p6
ONSET Ventures p10
OrbiMed Advisors p10, p11
Orexigen p3
P
Pacific Growth Equities p3
Par Pharmaceutical p7
Paul Capital p12
Paul Royalty Funds p12
Peptimmune p11
Pervasis Therapeutics p11
Pfizer p7
Pfizer Strategic Investment Group p9
Pharmos p15
Phenomix p4
Polaris Venture Partners p11
Pomeroy Health p8
Primera Biosystems p11
ProtAffin Biotechnologie p11
Psilos Group p10
Public Citizen p16
PureTech Ventures p11
R
Radius Ventures p9
RadPharm p9
Raygere p14
Renaissance p8
Rexahn p15
Rigel Pharmaceuticals p3
RK Ventures p9
Rodman and Renshaw p14
rontier Capital p11
Royal Senior Care p8
RxElite p7
S
Saturn Partners p11
Scale Venture Partners p3, p10
Seattle Genetics p3
Sectra AB p9
Senexis p11
Sepracor p7
Seventure Partners p10
Sevin Rosen Funds p10
SF Capital Partners p14
Siemens Venture Capital p9
Sinovac Biotech p15
Sofinnova Partners p10
Sonexa Therapeutics p10
St. Mary’s Holston Health p8
STAAR Surgical p4
Stanley Medical Research Institute p3
Sterling at Aventura p8
Susan G. Komen for the Cure p16
Susan G. Komen for the Cure Advocacy Alliance p16
SV Life Sciences p11
Sycamore Venture Partners p9
Symark p6
Synecor p11
Synovis p7
T
Targacept p3
Telegraph Hill Partners p11
Tempo Pharmaceuticals p11
Tethys Bioscience p10
Teva Pharmaceutical p7
The Buying Group p8
The Endeavors Group p9
The Entrepreneurs Fund p11
The Perrigo Company p7
The Society of Hospital Medicine p2
Three Arch Partners p11, p14
Tissue Repair Company p15
Titan Pharmaceuticals p4
TomoTherapy p9
TransEnterix p11
Transoma Medical p4
TriPoint Global Equities p14
U
U-Systems p6
U.S. Venture Partners p3
UHS-Pruitt p8
Ulthera Therapeutics p11
United Investments p11
V
VenRock Associates p15
Venture Investors p11
Ventures West p10
Versant Ventures p11
ViewRay p9
ViOptix p11
VisCorp p14
VistaCare p8
W
Wachovia Capital Markets p1
Wellcome Trust p10
Welsh Carson Anderson & Stowe p4
Whitley Place p8
William Blair & Company p1
WRF Capital p10
WuXi PharmaTech p7
Y
YA Global Investments p15
Yorkville Advisors p15
Z
Ziegler Meditech Equity Partners p6
Zogenix p11 |
Imaging Space Hot During 2007--
Venture Capital Funding Increases, Continuing In 2008
Email this article to a friend
Email Editor
Although we have heard
anecdotally that the medical imaging space has been heating up, our annual
venture capital results provide some proof. In 2007, the amount of funding
devoted to imaging equipment and imaging-related products and services
increased by 68%, compared with the previous year. There were 28 deals
announced in this space last year, which had twice as many as the previous
year.
During the past five years, a total of almost $940 million has been
invested in the medical imaging space through 89 venture capital deals.
Companies based in the United States raised 78% of that total, while the
remaining percentage went to companies in Canada, Israel and Europe. The
majority of the companies included in our calculations are medical device
companies working with MRI, ultrasound and other imaging technologies. The
others include pharmaceutical, biotechnology, e-health, health care
services and other companies focused on serving the medical imaging
industry.
Some of these companies have raised more than one venture round in recent
years, including ONI Medical Systems, the developer of the first
open, high-field extremity MRI system. ONI secured funding to expand its
product development and marketing efforts within the specialty MRI imaging
market. From 2003 to 2007, ONI Medical secured $31.3 million in venture
funding in four rounds, from investors including Galen Partners, Ivy
Healthcare Capital and Ziegler Meditech Equity Partners.
Wilmington, Massachusetts-based ONI, founded in 1997, has a customer base
that includes hospitals, imaging centers and orthopedic practices located
throughout the United States and Canada.
Imalux Corporation also raised four rounds, totaling nearly $20
million, from investors including ElectroSonics Medical, Early Stage
Partners, Symark and BIOMEC. Headquartered in Cleveland, Ohio,
Imalux is focused on the commercialization of a newer imaging modality,
for visualizing tissue micro-structure in real-time, called optical
coherence tomography (OCT). OCT was first demonstrated in 1991. More than
27 peer-reviewed clinical and technical papers and 36 international
conference presentations have included a look specifically at Imalux’s
technologies.
Israel-based InSightec Image Guided Treatment, a subsidiary of
Elbit Medical Imaging (NASDAQ: EMITF), raised four rounds totaling
nearly $70 million in venture capital in the past five years. InSightec
has a system to thermally ablate tumors inside the body non-invasively,
using three-dimensional visualization and high-intensity focused
ultrasound. Elbit, MediTech Advisors and GE Capital Equity
Holdings are among its investors.
Recently, InSightec received an investigational device exemptions
application from the FDA, meaning the company may now launch a phase III
pivotal study to determine if its incisionless surgery system can safely
and effectively reduce the pain associated with bone metastases in
patients who have failed to respond to radiation therapy. The system,
called ExAblate, is a non-invasive, ionized radiation-free magnetic
resonance-guided focused ultrasound system, approved to treat women
suffering from symptomatic uterine fibroids in 2004. So far, more than
3,500 women worldwide have undergone treatment with ExAblate.
San Jose, California-based U-Systems, a leading developer of
automated breast ultrasound systems for use in the detection of cancer,
secured $25.6 million in 2003 from Sycamore Venture Partners. Siemens
Venture Capital, MDS Capital, Radius Ventures and other investors
joined Sycamore in the $16.5 million round that U-Systems announced in
2007. The company has integrated proprietary hardware and software with
ultrasound to enable the immediate display of three-dimensional ultrasound
images of the breast through an automated process.
One of the pharmaceutical companies, Avid Radiopharmaceuticals, is
developing diagnostic imaging agents for earlier and more accurate
diagnosis, treatment selection and therapeutic monitoring of major medical
disorders, and is currently advancing compounds targeting neurological
disorders. Avid raised almost $35 million in venture funding during 2007,
from investors including Alliance Bernstein, Pfizer Strategic
Investment Group, RK Ventures and BioAdvance. In June 2007,
Avid Radiopharmaceuticals licensed to Bayer AG (NYSE: BAY) a
molecular imaging agent, which targets the amyloid plaques in the brain
that accompany Alzheimer’s disease, for an undisclosed amount.
Among the companies that are focused on carving a niche that serves
imaging companies, Franklin & Seidelmann is a national subspecialty
teleradiology provider serving imaging centers, physician groups and
hospitals. Last year, Oak Investment Partners invested $25 million
in Beachwood, Ohio-based Franklin & Seidelmann, to expand and improve the
company. Princeton, New Jersey-based RadPharm raised $18 million the past
two years, from Tang Capital Partners, Adams Street Partners, Siemens
Venture Capital and other investors. RadPharm provides image review
and medical services for oncology drug development, including central
radiology review, radiation therapy quality assurance services, oncology
clinical and medical photography reviews, and regulatory submission
services.
Some companies in this space have gone public or been acquired since we
tracked their last venture infusion, such as TomoTherapy (NASDAQ:
TOMO) and Mamea. In early 2006, TomoTherapy secured $14 million
from Ascension Health Group, The Endeavors Group and other
investors; the company priced its IPO in May 2007. TOMO’s system can be
used for the treatment of a wide variety of cancers, delivering radiation
therapy with precision, while reducing radiation exposure to healthy,
surrounding tissue. Recently, TOMO announced it had begun shipping a
faster version of the system, with new software and hardware features to
enhance usability and clinical productivity. Sweden-based Mamea, a company
that developed a new type of digital X-ray sensor to enable the
combination of high image quality with a minimum dose of radiation, was
acquired by Sectra AB in 2004. Sectra had invested in Mamea prior
to the acquisition. Recently, Sectra filed with the FDA to have its
MicroDose Mammography system approved for sale in the United States.
Investors that specifically seek certain investment opportunities in the
medical imaging market include Alafi Capital, which makes early-
and mid-stage venture investments primarily in product-oriented
biotechnology, life science technology, imaging and diagnostic and medical
device companies in the United States and Europe. GE Healthcare,
Eastman Kodak and Olympus Medical Systems each have experience
and expertise in various areas of medical imaging and have also invested
in imaging.
The imaging space is not likely to cool off anytime soon, given the demand
for less invasive surgery methods and smaller equipment, as well as new
diagnostic tools and other imaging technologies that can improve clinical
outcomes or speed the pace of treatment or diagnosis. Already in 2008, at
least $85.5 million in venture capital has been invested in imaging and
related companies. Four venture capital deals were announced in this space
during January, including two of the largest (see page 10). Mauna Kea
Technologies raised $30 million to continue developing in vivo
cellular technologies and ViewRay raised $25 million to accelerate
the development of its MRI-guided radiation therapy device. Also in the
first month of the year, Confirma, a company that develops and
markets application-specific computer-aided design systems and accessories
for MRI, raised $17.5 million. Cellectar, a radiopharmaceutical
company that designs and develops products to detect, treat and monitor a
variety of human cancers, raised $13 million.
|
|
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!
|
|
|
|
|
|
