Download March 2012: Financial highlights of Financial highlights of the life

Welcome to Venture Valuation’s VC Deal Summary
This month saw a major low point in venture capital backed financing for private European biotech
firms. The three rather small financing rounds this month in Europe mark a 12 month low in European
financing. The poor showing by Europe brought the total venture capital investment down by over USD
100 M from last month. On the other hand, deals in Israel and Japan contributed to a seven month high
in venture capital financing of USD 31 M in the Rest of the World as reported on Biotechgate. Also for
the first time in the last 7 months the Rest of the World has surpassed Europe in financing. Meanwhile,
across the pond, the US dropped from last month but still had a strong showing; 9 new VC financing
deals of private biotech therapeutic companies worth USD 135 M.
Read about Anaeropharma in Japan, Avraham in Israel and the USD 176 M in VC funding in this months
VC deal summary.
March 2012:
2012:
Financial highlights of the life sciences industry
Financing rounds
C3 Jian Closes USD 30 M Financing
C3 Jian, Inc. (Los Angeles, CA. USA), a private company focused on providing improved oral healthcare,
announced that it has closed its most recent equity financing, raising total proceeds of USD 30 M. The
Company expects to use the proceeds to advance its lead product, C16G2, a peptide drug targeting
dental caries, into human clinical trials in the United States. The Company is planning to file an
Investigational New Drug Application (IND) with the U.S. Food and Drug Administration in April.
Proceeds from the financing will also be used to support production development and scale-up, GMP
manufacturing, as well as final development and clinical testing of a hand held diagnostic product
related to C16G2.
The Company will also continue to invest in its pipeline of new proprietary peptide product candidates
based on its platform technology. C3 Jian is the worldwide exclusive licensee of patents covering a cell
signaling platform technology from The Regents of the University of California. Dr. Wenyuan Shi, a
professor at the University of California, Los Angeles School of Dentistry and C3 Jian's co-Founder, is
one of the inventors of the technology. C3 Jian has used the platform to identify a variety of drug leads,
including peptides that have the potential to re-mineralize teeth, in addition to promoting nail and hair
growth. The Company maintains a significant portfolio of intellectual property with over 70 patents
issued and pending worldwide. (Source: Yahoo Finance)
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INCJ Determined on up to JPY 2.2 B FollowFollow- on Investment
Innovation Network Corporation of Japan has determined on a follow-on investment of up to JPY 2.2 B
in Anaeropharma. Innovation Network Corporation of Japan has made its initial investment of JPY 700
M in November 2010. (Source: Company website)
Yissum, Pontifax, and Clal Biotechnology Industries Invest USD 9 M in Avraham Pharmaceuticals
to Pursue a Ph IIb Clinical Trial of Ladostigil, a Novel Drug for Treatment of Alzheimer's Disease
Yissum Research Development Company Ltd., the technology transfer arm of the Hebrew University of
Jerusalem, announced that it has participated in a USD.9 M financing of Avraham Pharmaceuticals Ltd.
(Jerusalem, Israel), together with Pontifax, Clal Biotechnology Industries, Professor Marta WeinstockRosin and others.
Yissum has also announced that, together with the Technion Research and Development Foundation
(TRDF), the technology transfer arm of the Technion Israel Institute of Technology, it will exclusively
license to Avraham the commercial rights of Ladostigil, a novel cholinesterase, brain-selective
monoamine oxidase inhibitor and neuroprotective agent for treatment of Alzheimer's disease and other
neurodegenerative diseases. The drug has proven to be safe and well tolerated in Phase I/IIa clinical
trials. As part of an advanced product development program, Avraham will use the newly invested
capital to complete an additional 52-week Phase II proof-of-concept efficacy trial in patients with
Alzheimer’s disease. (Source: Company website)
ConforMIS Reaches Funding Milestone with USD 89 M in Series E Financing
Surpassing all previous fundraising rounds, privately-held medical-device company ConforMIS, Inc.
(Burlington, MA. USA) announced that it has raised USD 89 M in a Series E round of funding, with
additional funds beyond this amount committed upon meeting certain milestones. The company, which
more than doubled its revenues in 2011, will use the funds to support ongoing sales and marketing
expansion, R&D investment into new product lines, and build out of manufacturing infrastructure. The
investments originated from private-equity funds in the U.S., Europe, Asia and the Middle East.
Principal investors in the round include AGC Equity Partners and Axel Johnson, Inc., along with
Government Investment Funds from Asia and the UAE.
Since its founding in 2004, ConforMIS, the fastest growing orthopedic implant company, has built and
brought to market the only full line of patient-specific implants and instruments for the treatment of
knee osteoarthritis , a USD 7 B global market. In 2010, the company launched their second generation
personalized partial knee solutions, the iUni G2 and iDuo G2. In 2011, ConforMIS received 510(k)
clearance from the United States Food and Drug Administration to market the iTotal CR Knee
Replacement System , the first and only patient specific total knee implant on the market. (Source:
Company website)
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Tranzyme Pharma Secures Additional USD 9.3 M Debt Financing
Tranzyme Pharma (Durham, NC. USA) announced that it received an additional net USD 9.3 M in term
loan proceeds through an amendment and restatement of its existing debt financing facility with Oxford
Finance LLC and Horizon Technology Finance Corporation.
After using a portion of the new proceeds to pay off a portion of the Company’s existing debt, the
Company has USD 20 M in outstanding debt. The terms of the amended notes provide that the Company
will pay interest only through February 2013. (Source: Company website)
Celladon Corporation Completes USD 43 M Financing to Advance MYDICAR for the Treatment of
Heart Failure
Celladon Corporation (La Jolla, CA. USA), a biopharmaceutical company focused on the discovery and
development of innovative treatments for cardiovascular diseases, announced that it has completed a
USD 43 M equity financing to advance its lead investigational product candidate MYDICAR for the
treatment of heart failure. The financing was led by new investor Pfizer Venture Investments and also
included new investors Lundbeckfond Ventures, Novartis Venture Funds, H&Q Healthcare/Life
Sciences Investors, and GBS Venture Partners. All previous investors participated in this round
including Enterprise Partners Venture Capital, Johnson & Johnson Development Corporation, and
Venrock Associates.
In conjunction with this financing, Celladon has added a new slate of directors to its board including
Barbara Dalton, Ph.D., of Pfizer Venture Investments (Chair), Johan Kördel, Ph.D., Assoc. Prof., of
Lundbeckfond Ventures, Lauren Silverman, Ph.D., of Novartis Venture Funds, Daniel Omstead, Ph.D., of
Hambrecht & Quist Capital Management, and Josh Funder, D.Phil., of GBS Venture Partners. In addition,
Andrew Senyei, M.D., of Enterprise Partners Venture Capital will continue to serve as a director.
Celladon Corporation plans to advance the clinical development of MYDICAR in 2012. MYDICAR was
recently granted Fast Track Status by the Food and Drug Administration in December, 2011 (Source:
Company website)
Apollo Endosurgery Announces USD 47.6 M Financing
Apollo Endosurgery, Inc. (Austin, TX. USA), a company focused on the development of devices that
advance therapeutic endoscopy to enable an entirely new generation of minimally invasive, scarless
surgical procedures, announced a USD 47.6 M financing. New investors Novo A/S, Remeditex
Ventures, and CPMG, Inc. joined existing investors PTV Sciences and H.I.G. BioVentures in this latest
round of financing for the Austin-based medical device company.
Proceeds from this financing will be used to support the commercial launch of the second generation
OverStitch Endoscopic Suturing System and other Apollo Endosurgery flexible surgical tools that allow
surgeons and interventional endoscopists to perform numerous procedures without making incisions
into the patient’s skin. As part of the financing, Jack Nielsen of Novo A/S, John Creecy of Remeditex
and Kent McGaughy of CPMG will join the Apollo Endosurgery Board of Directors.
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Apollo Endosurgery’s OverStitch platform combines the flexibility of endoscopy with the precision of
surgical suturing, allowing physicians to access, manipulate and suture internal tissue without making
incisions through the skin. The platform therefore allows physicians to develop less invasive options
for the patient.
Apollo also recently announced the FDA clearance of its SuMO platform designed to help surgeons
remove large, flat precancerous gastrointestinal lesions and polyps. In general, this new class of
flexible surgery procedures may allow patients to benefit from reduced risk of infections and
associated complications, no visible scarring and faster recovery times compared to those who
undergo more traditional laparoscopic and open procedures.
With the assistance of the Apollo Group, a world renowned flexible endoscopy "think tank" and other
top surgeons and gastroenterologists across the globe, these devices are being used to create less
invasive approaches to surgery for obesity, early-stage gastrointestinal cancers, and numerous other
GI conditions. (Source: Company website)
A uxogyn Completes USD 20 M in Series A Funding
Auxogyn, Inc. (Menlo Park, CA. USA), a privately-held company focused on advancing women’s
reproductive health, announced the close of the final tranche of its Series A financing, bringing the
total funding to USD 20 M. The initial tranche was placed in May 2010, and investors in the round
include Kleiner Perkins Caufield and Byers, TPG Biotech and Merck Serono Ventures. (Source :
Company website)
Velomedix Closes New Financing, Strengthens Leadership Team
Velomedix, Inc. (Menlo Park, CA. USA), a development stage medical device company advancing the
clinical field of Therapeutic Hypothermia, announced the closing of USD 10.2 M in Series B financing
and the appointment of medical device veteran Jeffrey Gold as the company’s Chief Executive Officer
and Michael Moore as the Vice-President of Operations.
Velomedix is accelerating the paradigm shift in the management of patients suffering from cardiac
arrest and, potentially, those suffering from acute myocardial infarction (AMI or heart attack) and
stroke. The company’s initial clinical trial, CAMARO, enrolled cardiac arrest patients at multiple sites in
the European Union (EU). The clinical results demonstrated unprecedented positive neurologic
outcomes in patients surviving cardiac arrest, as compared to clinical data published in peer-reviewed
papers. Proceeds from the company’s recent financing will be used to initiate a post-CE Mark trial in
support of EU commercialization and obtain U.S. Food and Drug Administration approval for a clinical
study in the United States.
Concurrent with the closing of its Series B financing, Velomedix’s Board of Directors appointed Mr.
Gold as the company’s President & CEO on a permanent basis. Previously Mr. Gold was the Interim CEO
of Velomedix and a Venture Partner of Longitude Capital. As Interim CEO, Mr. Gold played a critical role
in strengthening Velomedix’s position in the emerging Therapeutic Hypothermia market. (Source:
BusinessWire website)
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Applied Proteomics Appoints
Appoi nts Peter Klemm as CEO Following Series B Financing of USD 22.5 M
Applied Proteomics Inc. (San Diego, CA. USA), powering the proteome to transform diagnostics,
announced the appointment of veteran diagnostic developer, Peter Klemm, Ph.D., as chief executive
officer. Applied Proteomics also announced the move of the corporate headquarters to San Diego.
Prior to the move, Applied Proteomics secured a USD 22.5 M Series B financing from Domain
Associates, Vulcan Capital and returning angel investors. In conjunction with the financing, James C.
Blair, Ph.D. founding partner at Domain, joined the Company’s board of directors. The financing will
support the creation of new diagnostics based on Applied Proteomics’ proprietary proteomic platform
solution to significantly improve medical care and therapeutic development.
Through technological innovation and novel approaches, Applied Proteomics has solved the proteomics
problem by rapidly collecting, processing, and analyzing data and identifying actionable medical
information. With unique mass spectrometry-- based systems control and computational expertise,
Applied Proteomics’ proteomics platform solution can accurately, reproducibly, and efficiently take
“snapshots” of a patient’s proteome and provide a physiological picture of the proteins actually
expressed in the body. Because proteins perform most cellular functions and are the targets of most
drugs and therapies, they are the most powerful source of information to know the health status of the
patient. Applied Proteomics is advancing the application of proteomics to the development of
diagnostics, companion diagnostics, and personalized medicine applications to power better medical
decisions and care. (Source: Company website)
Altheos raises Additional USD12.5 M to close Series A at USD 32.5 M
Altheos, Inc. (San Francisco, CA. USA), announced the dosing of the first patient in a Phase IIa clinical
trial of its lead investigational candidate, ATS907, a Rho kinase-selective inhibitor in development as a
next-generation eye drop for the reduction of elevated intraocular pressure in primary open angle
glaucoma and ocular hypertension. ATS907 is one of a series of ROCK inhibitor compounds licensed
from Asahi Kasei Pharma. Altheos also announced the company raised an additional USD 12.5 M in its
Series A financing, bringing the total to USD 32.5 M. The round, which will be tranched as the company
reaches specified milestones, was provided by existing investors Bay City Capital, Novo A/S, Canaan
Partners, and additional investors.
The first-in-human study is a randomized, controlled, investigator masked, dose-ranging, safety and
efficacy study in subjects with primary open angle glaucoma and/or ocular hypertension. The study
uses a two-stage adaptive design and is intended to evaluate a number of different doses of ATS907
ophthalmic formulation and to provide preliminary information on safety, tolerability and efficacy
(reduction in intraocular pressure) following 28 days of administration. Altheos expects to initiate the
second stage of this trial, a comparison of ATS907 and latanoprost (a prostaglandin analogue), closely
following completion of the first stage. The expanded Series A round will enable completion of a robust
Phase II clinical program. (Source: Company website)
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Innavirvax Lands USD 4.9 M in Series B Funding Round
InnaVirVax (Evry, France), a biopharmaceutical company dedicated to the development of therapeutic
and diagnostic solutions in pathologies associated with immune dysregulation, announced the closing of
a USD 4.9 M Series B round of funding. This round has been led by Pradeyrol Développement and
private equity funds Fa Dièse and FRCI (Fonds Régional de Co-Investissement d’Ile-de-France).
Historical InnaVirVax’s investors CapDecisif 2 and G1J Ile-de-France also participated in the round. This
funding allows the company to pursue its development, and especially to conduct the Phase I/IIa clinical
trials of VAC-3S immunotherapy, which will be carried out in two clinical centers of the Assistance
Publique – Hôpitaux de Paris, namely the Pitié Salpêtrière and Cochin Hospitals. Moreover, InnaVirVax
will also be able to develop other research projects relying on the same scientific background such as
the comprehension of immune dysregulations during severe pathologies. (Source: Company website)
Cayenne Medical Closes USD 10 M Capital Raise
Cayenne Medical, Inc. (Scottsdale, AZ. USA), a private sports medicine device company, announced the
closing of a USD 10 M equity financing, with new investor Fletcher Spaght Ventures joining existing
investors Split Rock Partners, MB Venture Partners and Investor Growth Capital. The proceeds will be
used to enhance the company’s sales and distribution and to support expansion of its portfolio of
sports medicine orthopedic solutions.
Cayenne Medical currently markets products that address previously unmet clinical needs in knee
ligament reconstruction and meniscal repair, including the AperFix II System, the CrossFix II System
and the iFix System. This month the company is also launching the Quattro Shoulder System for rotator
cuff and labral repairs. (Source: Fierce Medical Devices website)
Mnemosyne Pharmaceuticals Inc. Completes USD 5.4 M Series A Round to Support Drug
Discovery Programs
Mnemosyne Pharmaceuticals, Inc. Providence, RI. USA), an emerging biotechnology company focused
on the discovery and development of small molecule drugs to treat neuropsychiatric disorders, has
secured USD 5.4 M in a Series A financing. The round was led by Access BridgeGap Ventures and also
included existing investor Slater Technology Fund. Proceeds from the financing will support the
company’s drug discovery programs, and the identification of lead product candidates for treatment of
schizophrenia and other neuropsychiatric disorders.
Mnemosyne was founded in 2010 and previously raised seed funding from Slater Technology Fund and
private investors. The company’s founding scientists have extensive experience in N-Methyl-DAspartate (NMDA) receptor pharmacology and drug discovery for neuropsychiatric disorders.
Mnemosyne is developing a new class of molecules, Subunit Selective NMDA Receptor Modulators
(SNRMs) for the neuropsychiatry market.
The NMDA receptor is widely recognized as the master switch for learning and memory, and a large
body of preclinical and clinical research supports targeting this receptor to treat a broad range of
neuropsychiatric diseases and cognitive dysfunction. Learning and memory disorders represent a
major unmet medical need in neuropsychiatry. Together, these disorders encompass a significant
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portion of the broader USD 80 B mental health market. There is strong evidence indicating that a
principal underlying cause of schizophrenia is defective NMDA receptor function. Mnemosyne believes
that by potentiating a specific NMDA subunit, the company’s SNRM product candidates will provide
therapeutic benefit for cognition, and also impact the positive and negative symptoms of schizophrenia.
(Source: Company website)
BARDA Awards Contract Worth up to USD 67 M for the Development of a Novel Tetraphase
Antibiotic
Tetraphase Pharmaceuticals, Inc. (Watertown, MA. USA), a clinical-stage life science company
developing a portfolio of potent new antibiotics designed to be effective against dangerous, drugresistant bacteria, including multidrug-resistant (MDR) gram-negative pathogens, announced that the
Biomedical Advanced Research and Development Authority (BARDA) has awarded a contract worth up
to USD 67 M for the development of TP-434, a potent new antibiotic effective against multidrugresistant gram-negative pathogens and the lead product candidate in Tetraphase’s clinical pipeline.
Tetraphase will be working on this contract with Buffalo, NY-based CUBRC, Inc.
The BARDA contract includes pre-clinical efficacy and toxicology studies; clinical studies;
manufacturing activities; and associated regulatory activities to position the broad-spectrum antibiotic
TP-434 as a potential empiric countermeasure for the treatment of inhalational disease caused by
Bacillus anthracis, Francisella tularensis and Yersinia pestis. In parallel, TP-434 is being developed as
a potential therapeutic agent for serious hospital infections, including those caused by multidrugresistant aerobic and/or anaerobic gram-negative and gram-positive pathogens.
The contract includes a 12-month base period with committed funding of USD 11.5 M and subsequent
option periods that, if completed, would bring the total value of the award to approximately USD 67 M.
(Source: Tetraphase Pharmaceuticals’ Company website)
Diabetes Drug Company Lumena Raising up to USD 2 M to Reach Clinical Trials
Diabetes drug development company Lumena Pharmaceuticals aims to harness a benefit that diabetics
receive from gastric bypass surgery and deliver it to those patients in the form of a pill.
Lumena Pharmaceuticals (Durham, NC. USA), plans to start clinical trials on its experimental drug this
year. To get there, Lumena has raised USD 500,000 in a round that could go up to USD 2 M with funding
so far coming largely from Durham venture capital firm Pappas Ventures.
That something else is the diversion of bile. While bile is a means for the body to process fats, it also
acts as a signaling agent. In normal gastrointestinal function, most of the bile is recirculated. But
gastric bypass surgery also bypasses that mechanism, Grey said. The bile in the GI tract triggers
receptors that release glucagon-like peptide 1, or GLP-1, a hormone that helps regulate blood sugar.
Lumena was founded in January. The technology, however, comes from a scientist who used to work at
Amylin Pharmaceuticals), a San Diego, California biotechnology company that develops diabetes and
obesity treatments. The scientist’s discovery came after he left the company and Grey said that Amylin
has no claims on its technology. But one of the Lumena’s board members is Ted Greene, founder and
former CEO of Amylin. (Source: Medcitynews website)
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Satori Pharmaceuticals Raises USD 15 M in New Funding
Satori Pharmaceuticals (Cambridge, MA. USA), a developer of life changing therapeutics for
Alzheimer’s disease (AD), announced that it has raised an additional USD 15 M in financing. Current
investors InterWest Partners, New Enterprise Associates Inc. (NEA) and Prospect Venture Partners
co-led the round. Prior to this round, Satori had raised a total of USD 25 M in financing which has
allowed the Company to select a group of lead compounds poised for clinical development. Today, the
Company also announced that Donald Hayden was elected as Chairman of the Board of Directors and
that Dr. David Schnell, of Prospect Ventures and Stephen Muniz of PureTech Ventures were appointed
as new members of Satori’s Board. (Source: company website)
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Mergers & acquisitions
Alexion Completes Acquisition of Enobia Pharma Corp.
Alexion Pharmaceuticals, Inc. (Cheshire, CT. USA) announced that the Company has completed its
previously announced acquisition of 100% of the capital stock of Enobia Pharma Corp., a private
biopharmaceutical company focused on the development of therapies to treat patients with ultra-rare
and life-threatening genetic metabolic disorders.
Goldman, Sachs & Co. acted as financial advisor to Alexion. Ropes and Gray LLP acted as lead legal
counsel to Alexion and Cassels Brock & Blackwell LLP acted as Canadian legal counsel to Alexion.
(Source: Alexion’s Company website)
Biogen Idec To Acquire Stromedix
Biogen Idec (Weston, MA. USA), and Stromedix, Inc. (Cambridge, MA. USA), announced that they have
entered into a definitive agreement under which Biogen Idec will acquire Stromedix Inc., a privately
held biotechnology company focused on innovative therapies for fibrosis and organ failure. Under the
terms of the agreement, Biogen Idec will make an upfront cash payment of USD 75 M and additional
contingent value payments of up to USD 487.5 M based on the achievement of certain development and
approval milestones across multiple indications.
Stromedix’s lead candidate, STX-100, is a novel humanized monoclonal antibody that selectively
disrupts the TGF-beta pathway, which plays a central role in fibrotic disease. STX-100 exhibited
significant anti-fibrotic activity in preclinical animal models of fibrotic disease and demonstrated an
attractive safety and tolerability profile in a Phase I trial. Stromedix has also identified a series of
clinical biomarkers that reflects the biological activity of STX-100. STX-100 is entering a Phase II trial
in patients with idiopathic pulmonary fibrosis (IPF), a debilitating and almost uniformly fatal disease in
which patients experience progressive difficulty breathing due to fibrosis (scarring) of the lung. More
than 200,000 patients in the United States and Europe have IPF, and there is no FDA-approved
treatment for the disease at this time. STX-100 has potential in several additional fibrotic indications
given its selective mechanism of action. In addition to STX-100, Stromedix has a preclinical compound
that may have utility for the treatment of injury due to inflammation. (Source: Biogen Idec’s Company
website)
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Deals
Avanir Pharmaceuticals
Pharmac euticals And Concert Pharmaceuticals Announce License Agreement To Develop
And Commercialize DeuteriumDeuterium-Modified Dextromethorphan For Disorders Of The Nervous System
Avanir Pharmaceuticals, Inc. (Aliso Viejo, CA. USA) and Concert Pharmaceuticals, Inc. (Lexington, MA.
USA) announced that they have entered into an exclusive license agreement that provides Avanir
worldwide rights to develop and commercialize Concert’s deuterium-modified dextromethorphan (dDM) for the potential treatment of neurological and psychiatric disorders. The agreement includes the
rights to multiple deuterium-modified dextromethorphan compounds.
Under the terms of the agreement, Concert will receive an upfront payment and is eligible to receive
additional milestone payments upon achievement of certain predefined clinical, regulatory and
commercial targets as well as tiered royalties on worldwide sales of products containing d-DM. Avanir
will have overall responsibility for research, development and commercialization of d-DM. Concert will
provide manufacturing support for investigational new drug enabling studies. (Source: Concert’s
Company website)
Auxilium Pharmaceuticals, Inc. and Actelion Pharmaceuticals Ltd. enter a collaboration
agreement for XIAFLEX in Canada, Australia, Brazil and Mexico
Auxilium Pharmaceuticals, Inc. (Malvern, PA. USA) and Actelion Ltd. (Allschwil/Basel, Switzerland)
announced that they have entered into a long-term partnership for the development, supply and
commercialization of XIAFLEX (collagenase clostridium histolyticum), a novel, first-in-class biologic for
the potential treatment of Dupuytren’s contracture and Peyronie’s disease. Under the terms of the
agreement, Actelion will receive exclusive rights to commercialize XIAFLEX for the treatment of
Dupuytren’s contracture and Peyronie’s disease in Canada, Australia, Brazil and Mexico upon receipt of
the respective regulatory approvals. Actelion will be primarily responsible for the applicable regulatory
and commercialization activities for XIAFLEX in these countries.
XIAFLEX has been approved by the U.S. Food and Drug Administration and the European Medicines
Agency as a treatment for Dupuytren’s contracture, and is also in development in Japan. In addition,
XIAFLEX has been accepted for review by Health Canada for the treatment of Dupuytren’s contracture
in Canada and regulatory action is expected in the second half of 2012. Actelion expects to file for
approval of XIAFLEX for the treatment of Dupuytren’s contracture in Australia, Brazil and Mexico over
the next 12 months. XIAFLEX is also being evaluated in a global Phase III development program for
Peyronie’s disease with top-line data expected in late second quarter 2012.
Under the terms of the agreement, Actelion will pay Auxilium USD 10 M upfront and will also make up to
USD 16 M in potential regulatory, pricing and reimbursement milestone payments and USD 42.5 M in
potential sales milestone payments. Auxilium will also receive increasing tiered double-digit royalties
based on sales of XIAFLEX in Actelion’ territories and will supply product to Actelion at a predetermined
cost.
Auxilium will remain primarily responsible for the global development of XIAFLEX in Peyronie’s disease
and will be responsible for all clinical and commercial drug manufacturing and supply. Actelion will be
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responsible for clinical development activities and associated costs corresponding to any additional
trials required for specific territories. (Source: Actelion’s Company website)
Shire and Sangamo Collaborate to Develop Therapeutics for the Treatment of Hemophilia and
Other Monogenic Diseases
Shire plc (Dublin, Ireland), the global specialty biopharmaceutical company, and Sangamo BioSciences,
Inc. (Richmond, CA. USA), a leader in genome-editing technology, announced that they have entered
into a collaboration and license agreement to develop therapeutics for hemophilia and other monogenic
diseases based on Sangamo’s zinc finger DNA-binding protein (ZFP) technology.
Shire will receive exclusive world-wide rights to ZFP Therapeutics designed to target four genes (for
blood clotting Factors VII, VIII, IX and X) which will be used to investigate curative therapies for
hemophilia A and B. Shire also receives the right to designate three additional gene targets. Sangamo
is responsible for all activities through submission of Investigational New Drug (IND) Applications and
European Clinical Trial Applications (CTA) for each product and Shire will reimburse Sangamo for its
internal and external research program-related costs. Shire is responsible for clinical development
and commercialization of products arising from the alliance. Shire will pay Sangamo USD 13 M upfront
followed by research, regulatory, development and commercial milestone payments, and royalties on
product sales.
Sangamo’s ZFP Therapeutic approach utilizes its proprietary ZFP nuclease (ZFN) and ZFP transcription
factor (ZFP TF) technology. ZFPs can be engineered to recognize any specific DNA sequence within a
gene, and may be applicable to certain Shire therapeutic areas, including hematology and lysosomal
storage disorders. (Source: Shire’s Company website)
Merck and Threshold Announce Global Agreement to CoCo- Develop and Commercialize Phase III
HypoxiaHypoxia-Targeted Drug THTH - 302
Merck KGaA (Darmstadt, Germany) announced that a global agreement was signed with Threshold
Pharmaceuticals, Inc., (San Francisco, CA. USA) to co-develop and commercialize TH-302, Threshold’s
small molecule hypoxia-targeted drug. TH-302 is currently being investigated in a global Phase III
clinical trial in patients with soft tissue sarcoma, a randomized Phase II trial in patients with advanced
pancreatic cancer from which top-line results are expected in February, as well as additional clinical
studies in other solid tumors and hematological malignancies.
Under the terms of the agreement, Merck will receive co-development rights, exclusive global
commercialization rights and will provide Threshold an option to co-commercialize the therapeutic in
the United States. In exchange, Threshold will receive an upfront payment of EUR 19 M and could
receive up to EUR 26.5 M in additional development milestones during 2012. Threshold is also eligible to
receive a EUR 15 M milestone payment based on positive results from its randomized Phase II trial in
pancreatic cancer.
In the United States, Threshold will have primary responsibility for development of TH-302 in the soft
tissue sarcoma indication. Threshold and Merck will jointly develop TH-302 in all other cancer
indications being pursued. Merck will pay 70% of worldwide development costs for TH-302. Subject to
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FDA approval in the United States, Merck will initially be responsible for commercialization of TH-302
with Threshold receiving a tiered, double-digit royalty on sales. Under the royalty-bearing portion of the
agreement, Threshold retains the option to co-promote TH-302 in the United States. Additionally,
Threshold retains the option to co-commercialize TH-302 allowing the company to participate in up to
50% of the profits in the United States, based on certain revenue tiers. Outside of the United States,
Merck will be solely responsible for the commercialization of TH-302 with Threshold receiving a tiered,
double-digit royalty on sales in these territories.
TH-302 is a hypoxia-targeted drug that is thought to be activated under tumor hypoxic conditions, a
hallmark for many cancer indications. Areas of low oxygen levels (hypoxia) within tissues are common
in many solid tumors due to insufficient blood vessel growth. Similarly, the bone marrow of patients
with hematological malignancies has also been shown, in some cases, to be extremely hypoxic.
(Source: Merck’s Company website)
Enanta Enters Into Strategic Collaboration to Advance Ns5a Inhibitor Candidate For HCV
Enanta Pharmaceuticals, Inc. (Watertown, MA. USA), a research and development company dedicated
to creating best-in-class small molecule drugs in the infectious disease field, announced that it has
entered into an exclusive collaboration and license agreement with Novartis for the worldwide
development, manufacture and commercialization of its lead development candidate, EDP-239, from its
NS5A hepatitis C virus (HCV) inhibitor program. Enanta has received IND approval for EDP-239 from the
FDA.
NS5A, a clinically validated target, is a non-structural viral protein that is essential to viral replication.
Research efforts have shown that targeting NS5A gives rise to profound antiviral activity, and as a
result, this protein has emerged as an important target for antiviral drug development. Enanta’s NS5A
program and intellectual property estate in the HCV field were derived from its internal drug discovery
efforts. EDP-239, Enanta’s lead candidate targeting NS5A was most recently recognized on
Windhover’s list of the “Top Most Interesting Infectious Disease Projects to Watch”.
Under the terms of the agreement, Enanta will receive an upfront payment of USD 34 M and is
eligible to receive up to USD 406 Million if certain clinical, regulatory, and commercial milestones are
met. Enanta is also eligible to receive tiered double-digit royalties on worldwide sales of products, and
retains co-detail rights in the United States. Novartis will be responsible for all costs associated with
the development, manufacture and commercialization of EDP-239 and will fund Enanta’s drug discovery
efforts on certain additional compounds targeting NS5A. (Source: Enanta’s website)
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February 2012 Financing rounds Summary from Biotechgate
Company name
Sector
Anaeropharma
Science, Inc.
eSight Corporation
Biotechnology - Therapeutics
and Diagnostics
Medical Technology
27.7
Type of
Round
Series B
2.0
Series A
Celldex Therapeutics
Ltd.
YM BioSciences Inc.
40.4
On-Q-Ity
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology / R&D Services
Amyris, Inc.
Biotechnology - other
83.7
Receptos
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - other
10.8
30.0
Pharmalink AB
C3 Jian, Inc.
Satori
Pharmaceuticals Inc.
Collegium
Pharmaceutical, Inc.
BioAmber Inc.
Vascular Magnetics,
Inc.
Integrated
Diagnostics
Ceres, Inc.
ADOCIA
Alexza
Pharmaceuticals, Inc.
OpGen, Inc.
Tetraphase
Pharmaceuticals
BioLineRx
Mnemosyne
Pharmaceuticals, Inc.
Apnex Medical, Inc.
Atossa Genetics, Inc.
Avaxia Biologics, Inc.
Amount
Ownership
Country
Private /
independent
Private /
independent
Public
Japan
Other
Financing
stage
Equity First stage
Equity Start-up
Post-IPO
80.5
Other
Post-IPO
Public
Canada
5.3
Series C
Series B
Private /
independent
Private /
independent
Public
Sweden
5.0
Equity Later stage
nd
Equity – 2
stage
n/a
Series B
n/a
USA
Equity
financing
n/a
Equity First stage
Equity First stage
nd
Equity – 2
stage
st
Equity – 1
stage
st
Equity – 1
stage
IPO
IPO
Private /
independent
Private /
independent
Private /
independent
Private /
independent
Private /
independent
Private /
independent
Private /
independent
Public
Public
Post-IPO
Public
USA
Equity Later stage
n/a
USA
Post-IPO
Private /
independent
Private /
independent
Public
Equity Start-up
Equity Later stage
IPO
Equity Start-up
Private /
independent
Private /
independent
Public
Private /
independent
USA
15.5
22.5
Series B
30.0
Series C
Medical Technology
7.0
Series A
Biotechnology / R&D Services
30.0
Series A
Biotechnology - other
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology / R&D Services
65.0
33.5
Other
Other
3.5
Series C
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Medical Technology
11.5
15.0
development
contract
Other
5.4
Series A
20.0
Series C
Medical Technology
Biotechnology - Therapeutics
and Diagnostics
6.0
4.1
Other
Series A
22.0
Canada
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
France
USA
Israel
USA
USA
USA
13
Cayenne Medical, Inc.
Medical Technology
10.0
Other
DFine, Inc.
Medical Technology
25.0
Series E
InnaVirVax SA
Biotechnology - Therapeutics
and Diagnostics
Biotechnology / R&D Services
4.9
Series B
8.0
Series B
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Medical Technology
60.5
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Medical Technology
Courtagen Life
Sciences, Inc.
Exelixis Inc.
Altheos, Inc.
Ironwood
Pharmaceuticals, Inc.
Cempra
Pharmaceuticals
Velomedix, Inc.
MannKind
Corporation
Applied Proteomics,
Inc.
Radius Health
Avraham
Pharmaceuticals
Ardea Biosciences
Apollo Endosurgery,
Inc.
Transgenomic, Inc.
USA
Private /
independent
Public
USA
USA
France
USA
USA
Series A
79.2
Other
Equity – 2
stage
Post-IPO
47.7
Other
IPO
Public
USA
10.2
Series B
n/a
USA
86.3
Post-IPO
22.5
Follow-on
financing
Series B
Private /
independent
Public
USA
86.2
Other
IPO
Private /
independent
Public
3.0
Series B
Equity First stage
IPO
Private /
independent
Public
Israel
n/a
USA
Post-IPO
Private /
independent
Public
Equity Start-up
Equity Start-up
nd
Equity – 2
stage
Post-IPO
Private /
independent
Private /
independent
Private /
independent
Public
USA
Equity Start-up
Debt
financing
Equity First stage
n/a
Private /
independent
Public
USA
Private /
independent
Private /
independent
Norway
166.2
Other
47.6
22.0
Auxogyn, Inc.
Biotechnology / R&D Services
20.0
Private
Placement
Series A
Insero Health
Biotechnology - other
1.1
Series A
Nuclea
Biotechnologies Inc.
Response Genetics,
Inc.
Stemgent
Biotechnology / R&D Services
9.8
Series B
Biotechnology / R&D Services
7.8
Biotechnology / R&D Services
6.3
Other
Tranzyme Pharma
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
Biotechnology - Therapeutics
and Diagnostics
9.3
Debt
Financing
Series A
Lumena
Pharmaceuticals
nd
Private /
independent
Private /
independent
Private /
independent
Private /
independent
Public
12.5
Biotechnology / R&D Services
Targovax AS
Equity First stage
Equity Later stage
Equity First stage
Equity First stage
Post-IPO
0.4
0.5
n/a
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
14
Therapeutic BIoTech Financing – Last 13 Months1
Financing Worldwide
(in USD millions)
Biotechnology - Therapeutics and Diagnostics
Private/independent Companies
Year
2011
2011
2011
2011
2011
2011
2011
2011
2011
2011
2011
2012
2012
Month
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Totals
US
Europe
Rest of World
208
123
61
24
160
114
46
0
567
418
136
13
415
284
126
5
479
396
40
43
512
416
35
61
266
221
26
19
385
201
156
28
441
386
55
0
660
503
154
3
220
168
41
11
280
174
95
11
176
135
11
31
Grand
Total
4770
3538
982
250
Source Biotechgate
15
Biotech Financing
Biotech Therapeutic Financing Rounds
25
700
600
500
15
400
300
10
200
5
100
0
Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12
Deal Value EU
61
46
136
126
40
35
26
156
55
154
41
95
11
Deal Value US
123
114
418
284
396
416
221
201
386
503
168
174
135
Total Deals US
7
10
12
12
14
18
15
11
13
21
15
9
9
Total Deals EU
5
7
5
9
6
5
4
10
9
6
2
8
3
0
Copyright © 2012 Venture Valuation VV Ltd. All rights reserved. This report is provided for information purposes only. All information regarding
financing rounds, deal summaries and merger and acquisition transactions was obtained from company websites or industry newsletters including
Fiercebiotech, OnBioVC, and SECA. The above information can also be accessed on the Biotechgate website. All graphical information was provided
via Biotechgate. While the information contained herein has been obtained from sources deemed reliable, Venture Valuation VV Ltd makes no
guarantees that it is accurate, complete, timely, or sequential. For more information about Biotech companies, including deal, licensing and financing
round details, please visit the Biotechgate website at www.biotechgate.com
16
Total Value in Million USD
Number of Financing Rounds
20