I. FINANCING OF PRIVATE BIOTECHNOLOGY COMPANIES: $81.9M
Company |
Location |
Date |
Amt. (M) |
Details |
Biosyn Inc. (1st round) |
Philadelphia |
7/1 |
$8.5 |
Private financing comprised of $7M in equity financing, plus $1.5M of debt converted into common stock; financing was led by Warburg, Pincus Equity Partners LP, a private equity investment fund managed by E.M. Warburg, Pincus & Co. LLC |
Elitra Pharmaceuticals Inc. (2nd round) |
San Diego |
7/20 |
$16 |
Private placement was led by Interwest Partners and Walden Group, who were joined by existing investors, Enterprise Partners and Mayfield Fund |
Maxygen Inc. (4th round) |
Redwood City, Calif. |
7/14 |
$20 |
Private placement by new and existing investors; existing investors included lead investor Technogen Associates LP; new investors included Lombard Odier, Invemed Fund LP, and CMEA Life Sciences Fund |
t. Breeders Inc. (Round ND) | Worcester, Mass. |
7/7 | $5.95 |
t. Breeders received an equity capital financing from a syndicate of four venture capital firms led by MPM Asset Management, of Cambridge, Mass., and including Javelin Capital, of Birmingham, Ala.; Seaflower Associates, of Waltham, Mass.; and Zero Stage Capital, also of Cambridge |
Third Wave Technologies Inc. (mezzanine) |
Madison, Wis. | 7/27 |
$19.5 |
Third Wave raised $19.5M in a private round of equity financing; new investors included Shroder Ventures International Life Sciences Fund II, The Wellcome Trust, SR One, and MVM Ltd; existing investors in this round included Venture Investors and Kenneth R. McGuire |
Triad Biotechnology Inc. (seed) |
Rancho Santa Fe, Calif. |
7/2 |
$12 |
Triad completed a Series A preferred stock financing; investors included Skyline Ventures, GeneChem Technologies Venture Fund, Hambrecht & Quist Life Science Investors, H&Q Healthcare Investors and Lombard-Odier |
II. MILESTONE PAYMENTS AND EQUITY INVESTMENTS | ||||
FROM CORPORATE PARTNERS: $108.4M | ||||
Company (Symbol) |
Partner (Symbol; Country) |
Amt. (M) |
Triggering Event |
Details (Date) |
Advanced Tissue Sciences Inc. (ATIS) |
Smith & Nephew plc (U.K.) |
$10 |
Stock conversion (ND) |
A $10M loan from Smith & Nephew was converted into approximately 2.8M shares of the company's common stock as allowed under the terms of the loan agreement; the loan was due and payable in less than a year; the conversion increases Smith & Nephew's interest in the company to about 8% (7/30) |
Amarillo Biosciences Inc. (AMAR) |
Hayashibara Biochemical Laboratories (Japan) |
$3 |
Phase III clinical trial | Hayashibara will provide Amarillo with three loans of $1M per quarter beginning 8/99 for a total of $3M; the loan will be repayable upon the earlier of 7/04 or one year after FDA approval of low dose oral interferon alpha for any indication (7/19) |
Avant Immuno-therapeutics Inc. (AVAN) |
Novartis Pharma AG (Switzerland) |
$6 |
Exercise of option to license TP10 |
Novartis exercised its option to license TP10 in the field of transplantation; Avant will receive a $6M equity investment and milestone payment subject to certain conditions being met (7/19) |
BioMarin Pharmaceutical Inc. (BMRN) |
Genzyme Corp. |
$10 |
Completion of BioMarin's IPO | Genzyme Corp. purchased 0.77M shares at the IPO price of $13 per share in a private placement totaling $10M (7/23) |
Cell Genesys Inc. (CEGE) |
Japan Tobacco Inc. |
$4.5 |
Completion of initial Phase I/II trial | The pharmaceutical division of Japan Tobacco Inc. paid Cell Genesys $4.5M milestone upon completion of a Phase I/II trial of GVAX prostate cancer vaccine (7/1) |
Cortecs plc (LSE:CCS) |
Towa Pharmaceuticals Co. Ltd (Japan) |
£1.6 (US$2.6) |
ND | Cortecs received a £1.6M milestone payment from Towa Pharmaceuticals as they terminated their agreement on Macritonin, Cortecs' slow-release osteoporosis drug (7/22) |
Emisphere Technologies Inc. (EMIS) |
Elan Corp. (Ireland; NYSE:ELN) |
$15 |
Restructuring of joint venture agreement |
As part of the restructuring of a previous joint venture agreement, Elan will provide Emisphere with up to $15M for Phase III trials of oral heparin; additionally, at conclusion of the joint venture, Emisphere will receive cash payments of approximately $6M owed for past services (7/6) |
The Immune Response Corp. (IMNR) | Agouron Pharmaceuticals Inc. (a Warner-Lambert company; NYSE:WLA) | $5 |
Quarterly payment for research collaboration |
Immune Response received a $5M payment from Agouron, $2M of which was for the purchase of more than 0.25M shares of unregistered common stock purchased at a premium to the market; under the terms of the collaboration, Immune Response may receive up to an additional $40M (7/16) |
Inflazyme Pharmaceuticals Ltd. (Canada; TSE, VSE:IZP) | Hoechst Marion Roussel |
C$4.9 (US$3.3) |
Collaborative research agreement |
Inflazyme closed on a second tranche of convertible preferred shares; the preferred shares are convertible into common shares at Inflazyme's option any time after one year at a price based on the higher of the common share price at the time of subscription or conversion, up to a maximum of C$9M; Inflazyme will be required to convert the preferred shares into common stock following the completion of Phase IIa for an oral compound from the company's IPL576 series and the H1/NK1 dual antagonists (7/12) |
Ligand Pharmaceuticals Inc. (LGND) | Elan Corp. plc (Ireland; NYSE:ELN) | $40 |
Part of terms of 9/98 alliance | Ligand issued $40M of zero-coupon convertible notes to Elan Corp.; the notes are convertible into Ligand common stock at $14 per share, a premium of about 27% over the 7/14 closing price of $11 (7/15) |
NeoPharm Inc. (NEO) |
Pharmacia & Upjohn (NYSE:PNU) |
$2 |
Progress in clinical development agreement |
NeoPharm received a $2M milestone payment from Pharmacia, the first of several possible under a previous collaboration agreement using NeoPharm's patented drug-delivery in conjunction with Pharmacia's Liposomal Encapsulated Paclitaxel and Liposomal Encapsulated Doxorubicin (7/19) |
North American Vaccine (NVX) |
BioChem Pharma Inc. (Canada; BCHE) |
$6 | Pending negotiations on strategic initiatives |
North American received a $6M line of credit guarantee from BioChem; if the company draws down the line of credit in full, BioChem will be entitled to receive warrants to purchase 0.75M shares of North American's common stock (7/6) |
Vertex Pharmaceuticals Inc. (VRTX) |
Kissei Pharmaceutical Co. (Japan) |
$1 |
Filing a marketing application in Japan | Kissei has filed for approval in Japan of a protease inhibitor discovered at Vertex and developed in conjunction with Kissei; in conjunction with the filing, Vertex received a $1M milestone payment from Kissei (7/2) |
* Conversion rate of £1 = US$1.62; Conversion rate of Euro1 = US$0.97; Conversion rate of C$1 = US$0.67; ND = Information not disclosed. |