I. FINANCING OF PRIVATE BIOTECHNOLOGY COMPANIES: $152.6M

Company

Location

Date

Amt. (M)

Investors; Details

BioImage A/S
(1st round)

Copenhagen, Denmark

4/28

$17

BioImage completed a $17M private placement, led by funds advised by Apax Partners; BioImage is a spin-off of Novo Nordisk A/S (NYSE:NVO; Denmark), and Novo retains a minority equity stake

BioMarin Pharmaceutical Inc. (2nd round)

Novato, Calif.

4/14

$26

BioMarin closed $26M private placement, managed by LaMont Asset Management; participants included A and A Actienbank GmbH, SMS Securities (Sigg-Merkli-Schrodel AG), several other European investors, and Glyko Biomedical Ltd., a founder of BioMarin and the company's lead investor

BioStratum Inc. (1st round)

Research Triangle Park, N.C.

4/1

$6

BioImage completed $6M private placement with HealthCap (managed by Odlander and Fredrikson & Co. AB) and BankInvest

Circe Biomedical Inc. (1st round)

Lexington, Mass.

4/6

$16.4

Formerly operated as wholly owned subsidiary of W.R. Grace & Co., Circe became an independent, private company through a management-led buyout and a $16.4M venture capital financing commitment; investors included Polaris Venture Partners, Bessemer Venture Partners, Advanced Technology Ventures, Spray Venture Partners, BancBoston Ventures Inc. and Mayo Medical Ventures

Cytochroma Inc. (1st round)

Kingston, Ontario

N/D

C$2.1 (US $1.4)

Cytochroma received $1.4M in equity financing from the Canadian Medical Discoveries Fund, Working Ventures Canadian Fund and Gene-Chem

Encelle Inc. (mezzanine)

Raleigh, N.C.

4/26

$5

Encelle completed $5M Series B financing; investors to date include Intersouth Partners, N.C. Bioscience Investment Fund and N.C. Enterprise Fund, and Cordova Ventures

Gemini Holdings plc (3rd round)

Cambridge, England

­

£9.2 (US$14.9)

Gemini exceeded its £8M goal, raising £9.2M in a placement with nondisclosed investors

InterMune Pharmaceuticals Inc. (1st round)

Palo Alto, Calif.

4/30

$6

Connetics Corp. launched spin-off company InterMune through sale of majority interest to outside investors; InterMune raised $6M throught a self-managed private placement of Series A preferred stock with lead investor Sanderling, and with co-investors BioAsia Investments LLC and Charter Ventures III; when Connetics created the company, it retained a 10% equity position and received a $0.5M cash payment and will receive additional cash and equity payments over the next 3 years

Kinetix Pharmaceuticals Inc. (2nd round)

Medford, Mass.

4/15

$8.8

Kinetix completed $8.8M Series B private financing; participants include new investor Shroder Ventures International Life Sciences Fund, along with existing investors JAFCO Co. Ltd., Lombard-Odier Immunology Fund, Zero Stage Capital, and The Novartis Venture Fund

Pharmadigm Inc. (3rd round)

Salt Lake City

4/19

$8.6

Pharmadigm completed a self-managed private placement of Series D convertible preferred stock, of which $6.5M was raised by Zurich-based venture capitalist Peter Friedli of Friedli Corporate Finance

Sequenom (3rd round)

San Diego

4/19

$37

Sequenom completed a $37M equity financing round; new investors include Nomura International, Deutsche Bank, Haspa Bank, Euroventures, Vertex Capital, Alafi Capital and Value Management & Research; Index Securities acted as a placement agent for a portion of the financing; previous investors include Techno Venture Management, Alpinvest International, Global Life Sciences, Dresdner Kleinwort Benson and S.R. One Ltd

TerraGen Discovery Inc. (formerly TerraGen Diversity; 2nd round)

Vancouver, British Columbia

4/19

C$8 (US$5.5)

TerraGen raised C$8M (US $5.5M) in private financing to support acquisitions of ChromaXome Corp. and Xenova Discovery Ltd.; MDS Capital Corp., including MDS ventures Pacific Inc. and Canadian Medical Discoveries Fund Inc., led the financing by existing investors, which included Biotechnology Investments Ltd., S.R. One Ltd. and the Business Development Bank of Canada

II. MILESTONE PAYMENTS AND EQUITY INVESTMENTS FROM CORPORATE PARTNERS: $147.8M

Company* (Symbol)

Partner

Amount (M)

Triggering Event

Details/Date

Alkermes Inc.

Genentech Inc.

$35

Expansion of agreement for Nutropin Depot, injectable, sustained-release formulation of human growth hormone

Genentech purchased $35M in convertible, exchangeable preferred Alkermes stock with a conversion price of at least $45 per share; Alkermes has the option to redeem preferred stock in cash or common stock at any time (4/15)

Aronex Pharmaceuticals Inc.

Abbott Laboratories Inc. (NYSE:ABT)

$6.3

Milestone related to clinical development of Nyotran (injectable formulation of nystatin)

Abbott made $6.3M payment for achievement of milestone related to Nyotran development (4/13)

Celtrix Pharmaceuticals Inc.

Elan Corp. plc (Ireland)

$15.3

Formation of joint venture plus independent equity investment

Elan will purchase up to $12.8M worth of Celtrix preferred stock for $2.006 per share, with proceeds earmarked to fund Celtrix's share of companies' joint venture to treat osteoporosis using Somato-Kine (IGF-BP3 complex); separately, Elan bought $2.5M worth of Celtrix common stock at a premium to market (4/13)

Cypress Bioscience Inc.

Fresenius AG (Germany)

$5.2

Exercise of option to acquire manufacturing function and related assets

Fresenius exercised option to acquire Prosorba column manufacturing function and related assets located in Redmond, Wash., as part of marketing agreement (4/27)

Isis Pharmaceuticals Inc.

Elan Corp. plc (Ireland)

$27

Signing of a binding letter of agreement to form a new subsidiary of Isis to develop a platform technology for oral delivery of anti-sense drugs

Elan will make a $27M equity investment in Isis, consisting of $15M of common stock purchased at premium to market and $12M of convertible exchangeable preferred stock; Elan will also receive warrants exercisable in 5 years and has right to convert preferred stock into either an ownership interest in Isis or in the new subsidiary (4/12)

Genzyme Tissue Repair

Genzyme General

$25

Genzyme General's acquisition of GTR's share of NeuroCell joint venture

Genzyme General will pay $25M for GTR's 50% stake in Neuro-Cell, a joint venture between GTR and Diacrin Inc.; of the $25M, $5M is nonrefundable and $20M is a prepayment related to achievement of future milestones; GTR will also receive royalties of 3% on any products (4/1)

ICN Pharmaceuticals Inc. (NYSE:ICN)

Schering-Plough Corp. (NYSE:SGP)

$27

FDA marketing approval of Rebetron Combination Therapy (ribavirin and recombinant interferon alfa-2b) for hepatitis C

Schering-Plough bought 1.1M shares directly from ICN for $24.55 per share on 2/23 in compliance with 7/95 collaboration agreement (4/7)

Immune Response Corp.

Agouron Pharmaceuticals Inc.

$2

Third of 6 quarterly payments under terms of marketing agreement for Remune HIV therapy

The $2M is equity component of $5M quarterly payment, which includes $3M for research; Agouron purchased 0.19M shares of Immune Response at $10.56 per share, a premium to market price (4/20)

Multiple Peptide Systems (Privately held)

Elan Corp. plc (Ireland)

$5

Equity investment made separately from, but at the same time as, formation of joint venture

Elan made $5M equity investment in MPS (4/7)

Nabi

ND

ND

Sale of antibody collection centers

Nabi received cash payment; amount ND (4/23)

TOTAL: $147.8M

*Unless otherwise noted, stock symbols for biotech companies appear on pp. 11-12.