By Mary Welch

Deltagen Inc. raised $22.5 million in a private placement to advance its functional genomics programs and launch DeltaBase, its library of information on mammalian genes.

"This very well could be the last round of private money we raise for a quite a long time - if ever again," said Lars Barfod, Deltagen's vice president of commercial development. "It was slightly more than what we were looking for, but it was in the same arena."

Founded in 1997 by two former scientists of South San Francisco-based Genentech Inc., Deltagen's proprietary platform offers pharmaceutical and biotechnology partners access to information on the in vivo functional role of hundreds of novel genes annually. DeltaBase, which should be launched later this quarter, provides functional information about mammalian gene families with proven relevance to small-molecule drug discovery.

"This funding will allow us to complete our work with DeltaBase and prepare it for launch and marketing," Barfod said. "It will be made available on a non-exclusive subscription basis."

Prior to this round, the private, Menlo Park, Calif.-based company had raised about $14.5 million in venture financing. In October 1998, it raised $11.5 million in order to generate biological target leads from its proprietary mouse gene knockout technology. Deltagen can produce gene knockout mice in 31 weeks rather than the traditional year's time. (See BioWorld Today, Oct. 1, 1998, p. 1.)

"In our last round, The Sprout Group led the round," Barfod said. "This time it was led by Boston Millennia Partners."

Also participating in this round was The Sprout Group, Baccharis Capital and Crossroads, all of Menlo Park, and Lombard Odier & Cie, of Zurich, Switzerland. The Sprout Group is the venture capital affiliate of New York-based Donaldson, Lufkin & Jenrette Inc.