September 2008 issue
Central Nervous System Products Draw Funds:
Venture Capital Investments Stoke Development of Drugs, Devices
Companies developing product candidates
for use on disorders and diseases of the central nervous system have taken
in a significant amount of venture capital funding in recent years.
...
E-Health In The Venture Capital Spotlight:
Information Technology And Web-Based Solutions Attract Funding
August was the third-slowest month this year
for health care venture capital, but companies developing computer-based and
Web-based solutions and technology for health care applications continue to
attract investors.
...
Venture Capital Funds
Venture capital firms continue to close large funds that target investments
in the health care and other sectors
...
Mergers & Acquisitions
The health care mergers and acquisitions
announced in August include two deals that are each valued in excess of one
billion dollars.
...
Private Placements
Although private placement activity for public health care companies did
pick up in recent months, it slowed down again for August.
...
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:
September 2008
A
A Better Tomorrow Center p5
AAVIN Equity p8
ACADIA Pharmaceuticals p3, p10
Achillion p10
Acorda Therapeutics p4
Adenosine Therapeutics p6
Aduromed Industries p11
Advent Venture Partners p8
Affinity Capital Management p2, p9
Affinity Ventures p8
Agate Medical Investments p2
Agency for Healthcare Research and Quality p12
Alice Lab p2, p8
Allergan p3, p10
Allergy Research Group p5
ALZA p2
Ampersand Ventures p5
Anthera Pharmaceuticals p9
Apopharm p6
Apposite Capital p9
Arch Venture Partners p9
Artiman Ventures p8
Artiman Ventures p6
Ascension Health Ventures p6, p8
Astellas Venture Management p9
athenahealth p6
B
Bain Capital Ventures p9
Baird Venture Partners p2, p8
Banc of America Securities p4
BankInvest Group p9
Battelle Ventures p3
Bay City Capital p3
Bayer Schering Pharma p6
BGS Pharmacy Services p9
Bi-Op Laboratories p5
BioCrossroads Future Fund p2
BioImagene p6, p8
BioMedinvest p8
BioSpecifics Technologies p11
Bioton p6
Birchmere Ventures p3
BrainsGate p2, p8
BSI p8
BTF B.V. p2
Burch Investment Group p9
Burch Investors p9
Burrill & Company p6
C
Calibra Medical p8
Canaan Partners p2, p8
Canopy Financial p6, p9
CapitalSource p4
CapitalSource Healthcare REIT p4
Care Capital p2
CareCentrix p5
Cariten Health p5
Catapult Venture Managers p9
Caxton Advantage Life Sciences p9
Celleration p8
Celtic Healthcare p5
Centers for Medicare & Medicaid Services p12
Cerberus Partners p5
Chicago Growth Partners p8
CID Equity Capital p8
Citi p4
Clarian Health Ventures p8
Clarus Ventures p10
Clarus Ventures p8
CleveX p9
Clinical Data p6
CMEA Ventures p8
CoAxia p2
Cognitive Pharmaceuticals p2
CoLucid Pharmaceuticals p2
Community Health p5
Covance p6
Cowen Healthcare Royalty p6
CPT Services p6
Credit Suisse p4
Cross Creek Capital p9
CSL Ltd. p5
Curacyte Discovery p6
Cutlass Capital p8
CVS Caremark p5
Cytomedix p11
Cytori p11
D
Deutsche Bank Securities p4
Diker Management p11
Domain Associates p2
Dome Imaging Systems p6
Dundee Securities p11
DW Healthcare Partners p9
E
eDonor p6
EKR Therapeutics p3
Eli Lilly p2
Elitech Group p6
Elron Electronic p2, p8
Emergent Group p5
Emeritus Assisted Living p5
EPIX Pharmaceuticals p10
ESBATech p8
Evotec AG p3
EVP Capital Management p9
Expression Genetics p9
F
F2G Ltd. p9
FDA p12
Fidelity Biosciences p8
Flagship Ventures p8
Florida NetPASS p5
Flybridge Capital p9
Flybridge Capital Partners p6
Follica p9
Forerun p9
Forterus p5
Forum Health p5
Foster Stockbroking p11
Foundation Capital p6, p9
Frantz Medical Ventures p8
Frazier Healthcare p8
Frazier Healthcare Ventures p6, p8, p9
G
Galapagos NV p6
GE Asset Management p9
Genizon BioSciences p2
Genzyme Ventures p8
GlaxoSmithKline p6
Global Med Technologies p6
GluMetrics p9
Goldman, Sachs p4
Griffin Securities p11
Grotech Capital Group p9
GrowthWorks Capital Working Opportunity Fund p2
H
Harvard University p8
Hayes Inc. p12
HBM BioCapital p8, p9
HBM BioVentures p8
HCP, Inc. p4
HealthCap p3
Healthcare Scoop p12
HealthCare Ventures p8
HealthExtras p5
Heron Capital p8
HLM Venture Partners p9
HLM Ventures p9
Humana p5
I
iBioPharma p11
ICCP Ventures p6, p8
IFCI Venture Capital Fund p9
Immediate Pharmaceutical p5
Indevus Pharmaceuticals p10
InteKrin Therapeutics p9
International Stem Cell p11
InterSouth p8
InterWest Partners p3
Investor Growth Capital p10
IR BioSciences Holdings p11
J
James Richardson & Sons p2
Johns Hopkins Bloomberg School of Public Health p12
Johnson & Johnson Development p2
JPMorgan p4
K
Kaiser Permanente Ventures p9
KfW p9
Khosla Ventures p9
KI NutriCare/Kikkoman p5
Kingsbridge Capital p10
L
LabCorp p12
Lehman Brothers p9, p11
LLR Partners p3
London Seed Capital p9
Longs Drug Stores p5
Lorus Therapeutics p11
M
Marck Bioscience p9
Massachusetts Development Technology Corp. p9
Massachusetts Development Technology Corporation p9
Maverick Capital p8
Mayo Clinic p12
MB Venture Capital p8
MB Venture Capital p2
Meda p6
MedAssets p9
Medco Health Solutions p12
Medicalis p9
MedicalMessaging.net p6
Mediphase Venture Partners p8
Medline Industries p12
Memory Pharmaceuticals p11
Merck p2, p3
Merifin p8
Merrill Lynch p4
Michelson Diagnostics p9
Milestone Biosciences p6
Mithridion p2
Molina Healthcare p5
Monroe Carell Jr. Children’s Hospital at Vanderbil p12
Morgan Stanley p9, p10
Mosaix Ventures p8
MPM BioCapital p3
MPM Capital p2, p8
Mustang Ventures p9
MVM Life Sciences Partners p9
N
Nanogen p6
National HealthCare p5
National Healthcare Services p6, p8
NDS Surgical Imaging p6
Neuro Discovery p2
Neuro3d p3
Neuromed Pharmaceuticals p2
New Enterprise Associates p8
New Enterprise Associates p6
New Leaf Venture Partners p10
New Leaf Ventures p9
New Science Ventures p8
NewSpring p3
Not disclosed p11
NovaCardia p3
Novartis BioVentures p8
Novartis Option Fund p8
Novelos Therapeutics p11
nTelagent p9
NuPathe p3
O
Olympus Corporation p11
Opexa Therapeutics p11
Owens & Minor p5
P
Pacific Growth Equities p10
Pappas Ventures p2
Passport Health p6
Patient Safety Technologies p11
PatientKeeper p6, p9
Paul Capital Healthcare p8
Pearl Street Venture Funds p2
Pfizer p6
PharmaGap p11
Photo Therapeutics p6
PhotoMedex p6
Piper Jaffray p11
Pitango Venture Capital p2, p8
Plymouth Venture Partners p9
Polaris Venture Partners p9
Polpharma p6
Prism Opportunity Fund p8
Prism Venture Partners p2
Procter & Gamble p8
Profex p9
ProMetic Life Sciences p11
ProQuest Investments p10
Proteome Systems p11
Proteostasis Therapeutics p8
PureTech Ventures p9
Q
Quaker BioVentures p3
Quanterix p9
R
RiverVest Venture Partners p8
Rx America p5
S
S.R. One p3
Safeguard Scientifics p3
Salient Surgical p4
Sareum Holdings p6
Seattle Medical Technologies p8
Seneca Health Partners p8
Serentis p9
Signature Diagnostics p9
Signet Healthcare Partners p8
Skyline p8
Skyline Ventures p8, p9
Sofinnova p3
Sofinnova Ventures p9
Special Situations Fund p10
Specialty European Pharma p8
Spectrum Equity Investors p6
SpePharm p8
Spineology p9
St. Jude Medical p6
Stanley Medical Research Institute p11
State of Wisconsin Investment Board p2
Stifel, Nicolaus p10
Sutter Hill Ventures p8
SV Life Sciences p8
SVB Capital Partners p2
T
Talecris Biotherapeutics Holdings p5
Talecris Plasma Resources p5
Tetraphase Pharmaceuticals p8
The Burrows Company p5
The Medicines Company p6
Three Arch Partners p8
Transition Therapeutics p6
Triathlon Medical Ventures p2, p8
Trident Capital p9
Trimedyne p6
TVM Capital p8
U
University of Pennsylvania School of Medicine p12
V
Vapotherm p9
Ventas REIT p4
Venture Investors p2, p8
Versant Ventures p3
Vista Cove Senior p5
W
Water Street Capital p5
Wellington West Capital p11
Whitney & Company p9
Wisconsin Investment Partners p2
WorldHeart p10
WPWIII Cap LP p9
Wyoming Valley Health p5
X
Xoft p8
Xtend Medical p11
Z
ZocDoc p9
Zogenix p4 |
E-Health In The Venture Capital Spotlight:
Information Technology And Web-Based Solutions Attract Funding
Email this article to a friend
Email Editor
Health care companies
announced 32 venture capital deals totaling $501.2 million during August
2008. That makes it the third-slowest month of the year so far, ahead of
only February, with 26 deals totaling $390 million, and April, with 39
deals totaling $501 million.
The medical device sector produced the greatest number of deals announced
in one sector during August, with 10 deals totaling $173 million. In an
unusual turn, both the biopharmaceutical and biotechnology sectors were
fairly quiet for the month, with a combined total of only five deals
amounting to a combined total of $79 million. But, in perhaps an even more
unusual turn, the e-health sector produced more venture capital
investments than we have seen in any other recent month.
The total amount invested is not very large, but surely some would argue
that computer-based businesses by nature need less capital to operate and
potentially succeed, so that point may mean less here than it would in
other sectors. The seven venture capital investments announced by e-health
companies in August total nearly $55 million. More e-health deals have
already been announced this year, in the eight-month period ended August
31, 2008, than in some entire years, including 2003 and 2005, with 22
deals and 21 deals, respectively.
Deal-making in the e-health sector surged somewhat during 2006 and 2007,
just as it did for most of the health care venture capital market. These
companies include developers of information technology solutions or
Web-based applications for use in the health care industry. This year
(2008) could potentially be a record-breaker in terms of both dollars
invested and deals announced. The current record is held by 2006, which
produced 32 deals totaling $246.4 million. In 2007, the same number of
deals was announced but the total amount of funding was $224 million.
Among the e-health companies that announced a deal in August,
BioImagene, a provider of solutions for digital pathology, announced
the largest. BioImagene raised $26 million in Series D financing from
Burrill & Company, Ascension Health Ventures, National Healthcare
Services, Artiman Ventures and ICCP Ventures.
Canopy Financial, a provider of health care banking technology
solutions that connect health care and financial services, announced an $8
million round from one investor, Foundation Capital. Canopy has an
account management platform called HealthDirect that includes online
features, for managing health savings accounts, flexible spending
accounts, health reimbursement arrangements, and voluntary employees’
benefit associations.
Also in August, PatientKeeper announced a venture round: $7.5
million in Series F financing from Flybridge Capital Partners, Frazier
Healthcare Ventures, New Enterprise Associates and Whitney &
Company. PatientKeeper is a developer and provider of physician
information systems, including a software environment for use in all care
settings with any computing device, including PCs, tablets, Smartphones
and PDAs. The funding is for ongoing expansion and building new products.
Medicalis, an expansion-stage health care information company providing
clinical decision support software and integration technologies to improve
the quality and efficiency of diagnostic imaging in health care, announced
a $7 million Series B financing, led by HLM Ventures. Medicalis has
already commercialized its clinical decision support product suite and
integration technologies.
nTelagent, a company that has developed an application for the
health care industry called the self-pay management system (SPMS),
announced a $1.7 million Series E financing from Burch Investors.
nTelagent’s SPMS is designed to revolutionize the way providers interact
with patients at the point of service regarding financial
responsibilities; it tells health care registrars and financial counselors
exactly what to do and what to say to each patient.
Forerun has a software system that delivers a complete, integrated
view of the emergency department, designed to provide instant access to
clinically relevant information, helping to accelerate the delivery of
care during peak periods without compromising quality and potentially
enhancing patient safety. In August, Forerun announced a $1.4 million
investment from Massachusetts Development Technology Corporation.
One notable e-health company, Atlanta, Georgia-based MedAssets
(NASDAQ: MDAS), announced a $22 million investment from Grotech Capital
Group in May 2005. MedAssets subsequently priced its initial public
offering, in December 2007, with Morgan Stanley and Lehman
Brothers as the lead underwriters, raising gross proceeds of almost
$213 million. MedAssets currently serves more than 125 health systems,
3,300 hospitals and 30,000 non-acute health care providers. Its solutions
are designed to help operators implement integrated spend management and
revenue cycle solutions to control cost, improve margins and cash flow and
optimize efficiency.
|
|
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!
|
|
|
|
|
|
