Fundamental Applied Biology Inc. raised $21 million in a Series B financing round co-led by SV Life Sciences and Alta Partners. Proceeds will be used to support development of the Menlo Park, Calif.-based company's cell-free protein synthesis technology, which was developed by Stanford University professor James Swartz. FAB plans to use the technology to develop its own protein-based products and form collaborations.

In essence, the cell-free technology involves extracting the catalytic machinery required for metabolism, transcription, translation and protein folding from living cells. The original cell wall or cell membrane is not retained and no living organism is needed, which FAB claims may overcome issues of degradation, purification, folding and yield that plague cell-based production of proteins for biologic drugs and vaccines.

Additionally, the fact that living cells do not need to be grown and maintained makes cell-free technology potentially more efficient than conventional recombinant DNA protein expression technology, the company said.

FAB also appointed Daniel Gold, who previously served as senior vice president of manufacturing alliances and senior vice president of pharmaceutical operations for Human Genome Sciences Inc., as its CEO.

Founded in 2004, FAB had previously raised about $1 million in a Series A financing. Swartz serves on FAB's board of directors, along with Michael Ross, managing partner at SV Life Sciences, and David Mack, director at Alta Partners.

In other financing news:

• Asuragen Inc., of Austin, Texas, raised $18.5 million in a Series B financing round. Investors included PTV Sciences, Telegraph Hill Partners and Growth Capital Partners. Asuragen, which previously closed a $49 million Series A in March 2006, develops microRNA-based molecular diagnostics.

• Ondine Biopharma Corp., of Vancouver, British Columbia, closed its previously announced private placement, generating gross proceeds of C$7 million (US$6.9 million) through the sale of 6.3 million units priced at C$1.10 each. Ondine originally had planned to sell 5 million units, each consisting of one common share and one-half of one common share purchase warrant. Proceeds will be used to support development of the company's photodisinfection technology, a light-activated approach to broad-spectrum antimicrobials.

• ProMetic BioTherapeutics Inc., of Montreal, secured a C$15 million (US$14.9 million) equity draw down facility through Nanuq Investments Ltd. The money may be drawn at ProMetic's discretion during the next two years through the sale of subordinate shares at a 4 percent to 7 percent discount to the market price. Funds will support ProMetic's large-scale purification of biologics as well as therapeutic development.