April
2008 issue
Venture Deals Intertwining With M&A,
As Pharma, Bio And Device Assets Are Spun Off, Licensed Or Sold
More venture deals associated with
acquisitions expected ahead.
...
Quarterly VC Results Slightly Depressed:
Total Venture Funding In Q1:08 Falls Back To 2005 Levels
Total quarterly funding reached a
historically low level.
...
Public Equity Market
Just one health care company priced its initial public offering.
...
Mergers & Acquisitions
The two largest deals of the month involve an
acquirer in Japan.
...
New Private Equity Fund Closes
The partners discuss investment strategy, sector focus, target deals.
...
Venture Capital Funds
VC firms changing names, still
investing, closing new funds.
VC-Backed Company Update
SpineMark Corporation is soon to seek its Series B financing.
...
Venture Capital Transactions
The health care venture capital market was on a roll in March 2008.
...
Private Placements
The market for PIPE deals was even slower than usual.
...
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:
April 2008
A
Abbott Pharmaceuticals p7
Abingworth Management p12
ABN AMRO Bank NV p10
ABN AMRO Capital Life Sciences p10
ABS Capital p2
Access Pharmaceuticals p4
Actelion p2
Adams Street Partners p13
Advanced Cell Technology p15
Advanced Medical Ptnrs. p8
Advanced Technology Ventures p12
AEA Investors p8
Akesis Pharmaceuticals p15
Alexza Pharmaceuticals p14
Alexza Singapore p14
Alimera Sciences p13
Allegro Diagnostics p13
Allion Healthcare p8
Alloy Ventures p13
Allscripts Healthcare Sol. p7
Almost Family, Inc. p8
Alphatec Holdings p7
Alseres Pharmaceuticals p15
Alta Partners p13
Altus Partners p9
American Capital p9
American Sr. Lvg. Commun. p8
Analogic Corporation p7
Andover Medical p15
Aperio Technnologies p13
Apex Home Healthcare Svs. p8
Applewood Retirement p8
Auriga Partners p13
Avalon Laboratories p9
Avalon Ventures p15
AVANIR Pharmaceuticals p14
AVI BioPharma p7
AVI Biopharma p4
AXA Private Equity p13
Azimuth Opportunity p14
B
Baker Brothers Investments p6
Baltic Sea Foundation p13
Banc of Am. p4
Battelle Ventures p13
Bay City Capital p6, p13
Bear Stearns p4
Bentley Pharmaceuticals p7
Bessemer Venture Partners p12
Bio-Imaging Technol. p8
BioArray Solutions p7
Biogen Idec New Ventures p12
Bioheart p4
Biomed America p8
BioNanomatrix p13
Biophan Technologies p4
BioVentures Investors p12
Boston Scientific p1
Boston Scientific Santa Rosa p7
Bostwick Laboratories p4
BrainCells p13
Breathe Technologies p13
C
C.R. Bard, Inc. p7
Cardinal Health p8
CardioNet p4
Catalyst Health & Technology p13
Cayenne Medical p13
Celtic Group p8
Centene Corporation p8
Cephalon p7
Cerimon Pharmaceuticals p3
CFO Research Services p6
Chartiers Manor p8
Chesson Laboratory Assoc. p13
China Aoxing Pharm. p7
CIT Group p6
Citi p4
Clarus Ventures p9
Co-Investment Fund II p15
Codon Devices p13
Cook Medical p3
Copley Controls Corp. p7
Corcept Therapeutics p14
CoTherix p2
Covidien Ltd. p7
Credit Agricole Private Equity p12
CyDex Pharmaceuticals p4
Cytogen p7
Cytogen Corporation p6
D
DAG Ventures p13
Darius International p8
Dayton Heart Hospital p8
Delphi Ventures p1
Deutsche Bank p4
Doctors Hospital p8
Domain Associates p10, p13
DRI Capital p7
E
Easton Capital p12
Edmond de Rothschild Investment Partners p12
EKR Therapeutics p3
Emergent BioSolutions p7
Endo Pharmaceuticals p7
EnGene p13
Enturia p8
Ercole Biotech p7
ESP Equity Partners p3
ESP Pharma p6
EUSA Pharma p6, p7
EyeGate Pharma p13
F
Fidelity Biosciences p10, p12
Flagship Ventures p13
Flybridge Capital Partners p10
Forbion Capital Partners p10, p12
Fortis Private Equity p12
Forward Ventures p13
Foundation Medical Partners p4
G
Garden State Life Sciences Fund p3
GE Healthcare Financial Services p3
Genentech p1
Gilde Healthcare Partners p12
Global Life Science Ventures p12
Global Med Technol. p7
Goldman Sachs p6
Good Samaritan Hospital p8
Good Shepherd Hospital p11
Guidant Investment Corporation p4
H
H&Q Partners p4
Hansen Medical p4
HCP, Inc. p4
Health Benefits Direct p15
Health Care Notification Network p16
Health Care REIT p4
Health Sciences Center p9
HealthCare Ventures p13
HealthTronics p8
High Country Venture p9
Highland Capital Partners p13
Highland Consumer Fund p13
HLM Venture Partners p13
Hoya Corp. p7
Humana p8
Hydra Biosciences p12
I
I-trax p8
IDG Ventures Atlantic p10
iHealth Alliance p16
Immucor p7
INBONE Technologies p7
Index Ventures p12
ING p13
Inglewood Ventures p4
Inlog, SA p7
InnerLight Holdings p8
Innovation Valley Partners p13
Integrated BioPharma p4
IntelGenex p15
IntelliDx p13
InterWest Partners p10
Investor Growth Capital p13
Invida Pharmaceuticals p7
iSirona p13
J
JAFCO p13
JCAHO p11
K
Kaiser Permanente Ventures p10
Kamada p15
Kearny Venture Partners p1
KeyBanc p4
Kingsbridge Capital p14
Kleiner Perkins Caufield & Byers p13
Kleiner, Perkins, Caufield & Byers p10
Kodiak Venture Partners p13
L
Leerink Swann p4
Lehman Brothers p4
Lemhi Ventures p13
LifeMasters Supp. SelfCare p13
LigoCyte Pharmaceuticals p13
Living Cell Technologies p14
LMA International p7
LMS Medical Systems p15
Longitude Capital Management p14
Luminous Medical p13
M
MAKO Surgical p4
Masa Life Science Ventures p13
Med. Ctr. Hosp. Authority p8
Medical Group Management Association p16
Medical Properties Trust p4
Medical University of South Carolina’s Department p16
Medicis Capital p13
MedImmune Ventures p10, p13
MediVision Medical Imaging p7
Medtronic p3
Memphis Biomed Ventures p13
Merck Capital Ventures p10
Merial Limited p13
Merrill Lynch p8
Mindray Medical p7
Misys Healthcare p7
Mitsubishi Corporation p10
Moberg Derma p13
Modigene p15
MPM Capital p1
MVM Life Science Partners p12
N
Nanogen p7
National Aquatics and Sports Medicine Institute p16
National Swimming Pool Foundation p16
New Enterprise Associates p1, p10
NewSpring Capital p3
Nexus Medical Partners p6
Nordic Biotech K/S p14
Nordic Biotech Opportunity Fund K/S p14
NovaQuest p6
Novartis p1
Novartis Venture Fund p10
Novelos Therapeutics p15
Novo A/S p12
Novo Nordisk Biotech Fund p12
O
Olympus Medical Systems p13
Ophthalmic Imaging Sys. p7
OPi SA p6
OptiMedica p13
OrbiMed Advisors p12
Oriola KD p7
OSF HealthPlans p8
Osteologix p14
P
Pacific Growth Eq. p4
Paladin Labs p7
PanGenetics p10, p12
Panorama Capital p6
Paradigm Capital p15
PDL BioPharma, Inc. p3
PDSHeart p4
Pentax Corp. p7
Pharmaca Integr. Pharmacy p13
PharmAthene p7
Phoenix Data Systems p8
Pieris p10, p12
Piper Jaffray p14
Polaris Venture Partners p10, p12
Presidio Pharmaceutic. p7
Presidio Pharmaceuticals p6
Prospect Venture Partners p12
Protein Discovery p13
Q
Quaker BioVentures p3, p12
Quest Diagnostics p16
Quintiles Transnational p6
R
RBC p4
RiverVest Venture Partners p13
Rodman & Renshaw p15
RxElite p4
S
Saad Investments p13
Safeguard Scientifics p10
Sagamore Bioventures p6
Saints Capital p13
Salient Surgical p4
Sanderling Ventures p9
Sante Ventures p13
Scale Venture Partners p13
Schering AG p2
Sciele Pharma p7
Scottish Equity Partners p13
SCYNEXIS p13
SFW Capital Partners p8
Shavit Capital Fund p15
Shijiazhuang Lerentang p7
Silicon Valley Bank p4
Sleep Solutions p13
Sofinnova Partners p13
Sofinnova Ventures p10
Specialized Health Products p7
SpineMark Corporation p11
Spiration p13
SplitRock Partners p13
SR One p13
Stentys p13
SV Life Science Partners p12
SV Life Sciences p6
Synchron Research Svs. p8
Synergy Partners p13
T
Takeda Pharmaceutical p7
Taligen Therapeutics p9
Tango p9
TAP Pharma. p7
TBI p11
Technowal p13
Tercica p3
Teva Pharmaceutical p7
TherOx p13
Thomas Weisel Partners p4
Tissue Science Laboratories p7
Transave p10, p12
Trevena p13
TriHealix p13
Trius Therapeutics p13
TriVascular2 p1
TV2 Holding Company p7
TVM Capital p6, p12
TxCell p13
U
UBS p4
Unibioscreen p13
University of Colorado at Denver p9
Upstream Capital Partners p11
V
VantagePoint Venture Partners p13
Vantia p12
Ventech p13
Ventures West p6
Versant Ventures p10, p13
ViewRay p2
W
W.L. Gore & Associates p3
Walgreen Co. p8
Washington State University p16
Wright Medical Group p7
X
XTL Biopharmaceuticals p6
Z
Zogenix p4 |
Quarterly VC Results Slightly Depressed:
Total Venture Funding In Q1:08 Falls
Back To 2005 Levels
Email this article to a friend
Email Editor
During the quarter ended
March 31, 2008, health care companies raised more than $1.9 billion in 103
deals with disclosed prices. This amount is fairly even with the first
quarter totals in 2004 and 2005. The Q1:08 dollar total does represent
about a 31% decrease from the total committed in the year-ago
quarter—however, more venture capital was invested in health care
companies during Q1:07 than any other quarter of the past five years. The
number of deals announced declined by 23% in Q1:08, compared with the
year-ago quarter.
Seven deals were announced
for $50 million or more apiece, accounting for 21% of the total dollar
volume for the quarter. Each of the three largest deals is in the $60
million dollar range, with one announced in each month of the quarter.
Nearly 40% of the deals announced had investment sizes of $20 million or
more. The average deal size for Q1:08 was $18.6 million, and the median
was $15.0 million.
The charts on page 9 of this
month's issue illustrate quarterly health care venture capital activity
for the past four-plus years, to offer some perspective on how the first
quarter of 2008 measures up to others, in terms of both dollars invested
and deals announced.
The largest deals announced in Q1:08
are all in the health care technology sectors. In the top deal, announced
in January, American Capital (NASDAQ: ACAS) invested $66 million in
Avalon Laboratories. Bethesda, Maryland-based Avalon is a supplier
of disposable cardiopulmonary vascular cannulae, medical devices that
provide connections between patients and life support machines. Over the
past 17 years, Avalon has gained a leading position in its niche market,
supplying more than 75% of the spring-reinforced cardiopulmonary vascular
cannulae used globally. The proceeds from the financing are being used to
further enhance, expand and grow the company. The emerging lung support
market represents one area of potential growth for Avalon.
Taligen Therapeutics
announced a $65 million Series B financing in February, from Altus
Partners, Clarus Ventures, Sanderling Ventures, Tango
and High Country Venture. Taligen, founded in 2004, is a
development-stage biotechnology company focused on developing multiple
products to control the alternative pathway of complement activation. The
complement system is believed to play a crucial role in the initiation of
inflammation. Activation of the complement system is believed to be
characteristic of diseases including asthma, macular degeneration,
rheumatoid arthritis and immune renal disease. Currently, the company’s
lead products are monoclonal antibodies and recombinant fusion proteins
that target key factors in the alternative complement pathway. Taligen
Therapeutics was founded by Dr. Woodruff Emlen and Dr. V. Michael Holers,
based on technology and intellectual property that is predominantly from
the University of Colorado at Denver and Health Sciences Center
(UCDHSC) and partnering institutions. An interview with Dr. Emlen was
featured in our March issue.
In March, TriVascular2
announced a $65 million round, led by MPM Capital. The TriVascular2 deal
is covered in more depth in the top story beginning on
page 1 of this month's issue.
Getting back to Q1:08
results, the medical device sector, with 32 venture investments totaling
$663.2 million in funding, was the most active in health care during the
quarter. Medical device companies raised the greatest amount of funding
(35%) and announced the most deals (31%) in any one sector. Nearly 21% of
the total dollars invested in health care during the first quarter was
committed to pharmaceutical companies. The biotechnology and
biopharmaceutical sectors each produced close to 19% of the venture
dollars raised.
Biotechnology companies
announced 23% of the number of venture deals in health care in Q1:08. The
pharmaceutical and biopharmaceutical sectors were each responsible for
exactly 15.5% of the total number of deals announced.
The most active venture
capital firms of the quarter, based on publicly announced transactions,
participated in four or more rounds. The top firms, InterWest Partners,
Kleiner, Perkins, Caufield & Byers, New Enterprise
Associates and Polaris Venture Partners, each contributed to
six health care investments. Domain Associates and Versant
Ventures each participated in five rounds, while Fidelity
Biosciences, MPM Capital and Sofinnova Ventures each
participated in four. The strategic investors (venture funds of
corporations or their affiliates) that invested during Q1:08 include
Medtronic, MedImmune Ventures, Safeguard Scientifics,
Kaiser Permanente Ventures, Mitsubishi Corporation, Novartis
Venture Fund and Merck Capital Ventures. |
|
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!
|
|
|
|
|
|
