MVS Solutions - Conducting the Business of Science (sm)
The Business of Science
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Corporate & Technology Development

Issue No. 1 | Winter 2006
A periodic newsletter provided by MVS Solutions, Inc.
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Notable VC Deals

  • Nanoplex Technologies, Inc. (Mountain View, CA), a developer of nanoparticle-based products for life sciences research, raised more than $2.5 million in Series B funding from Versant Venture Partners and individual investors.
  • CoreValve SA (Paris, France), a developer of a minimally invasive heart valve replacement, raised $24 million in Series B funding from Apax Partners and HealthCap.
  • Panacea Pharmaceuticals, Inc. (Gaithersburg, MD), a company focused on developing therapeutic and diagnostic products for cancer, raised $7 million in Series C round of financing.

Notable M&A Deals

  • Procyon Biopharma, Inc. (TSX: PBP), a publicly-traded biotech company developing therapeutics for cancer and HIV/AIDS, acquired Bioxalis Medica Inc. (Montreal, Canada), for equity worth C$2 million ($1.6 million).
  • Tyco International Ltd. (NYSE: TYC) has agreed to acquire Vivant Medical Inc. (Mountain View, CA), a developer of surgical devices to treat breast cancer, in a deal valued at $66 million in cash plus up to $35 million in milestone payments.
  • Vernalis PLC (NASDAQ: VNLS) has agreed to acquire Ionix Pharmaceuticals Ltd., a UK-based analgesic drug discovery company for stock valued at approximately Gbp12.5 million.

Notable IPO Deals

  • TopoTarget A/S (Copenhagen, Denmark), a drug company focused on oncology, completed an IPO on the Copenhagen Stock Exchange (symbol: TOPO) raising Dk258.75 million (approx. $41.3 million).
  • CryoCor, Inc. (San Diego, CA), a maker of a catheter system for cardiac arrhythmias, priced 3.7 million common shares at $11 per share for a total IPO take of approximately $40.8 million (NASDAQ: CRYO).
  • Genomic Health, Inc. (Redwood City, CA), a developer of genome-based oncology diagnostics, has priced about 5 million common shares at $12 per share for an IPO take of about $60 million. The company trades on the NASDAQ under the ticker symbol GHDX.










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Feature Article

Intellectual Property
By Dr. Louis M. Scarmoutzos

Intellectual Property (IP) is a valuable asset that is included in a company's "balance sheet" and provides additional valuation to a company. For early stage and small companies, IP may be the company's sole or primary asset base.

Intellectual Property includes patents, trademarks, service marks, copyrights, and trade secrets. This value-added asset can be sold, bought and traded as a part of everyday commerce. continued...


Venture Capital

Equity Funding

According to a recent PricewaterhouseCoopers/Thomson Venture Economics/National Venture Capital Association MoneyTree (tm) Survey, Venture Capitalists invested a total of $16.3 billion for the first three quarters of 2005.

Biotech Sector investments accounted for $2.75 billion (17%) of the amount invested and reflected investments in 265 companies; the Medical Devices and Equipment Sector accounted for $1.46 billion (9%) in 179 companies; and, Healthcare Services accounted for $338.6 million (2%) in 52 companies. continued...



Editorial Comment

Inaugural Issue

We would like to take this opportunity to welcome you to our Inaugural Issue of The Business of Science, an exciting new periodical from MVS Solutions. We intend to publish and distribute "The Biz" on a quarterly basis.

As its name implies, our new periodic newsletter will focus on business and commercial aspects of science-based and technology-based companies. Although initially focusing on the biotech, medical and related industries, we hope to grow our newsletter to include a much broader industry base and related technical disciplines. continued...


Spotlight on Technology

Licensing Opportunity

Recombinant mussel adhesive protein (rMAP) technology available for licensing.

A protein expression system for rMAP in E. Coli has been developed through genetic engineering. This technology produces rMAP and related MAP proteins in high yields. The technology further allows for the large scale production and purification of MAPs through improvements in the separation and purification process.

The recombinant protein shows significant improvements in adhesive strength compared to existing mussel adhesive proteins. Market applications include the medical, dental, pharmaceutical and specialty coatings areas. continued...


Spotlight on Business

Business Opportunity

Peptide & Peptidomimetic Therapeutics - R&D company is seeking a commercialization partner to continue the development of peptide and peptide mimetic drugs. Existing drug candidates show promising applications as a vaccine or cancer adjuvant; antimicrobial agent for antibiotic resistant microorganisms; angiogenesis promotion for wound healing; and, in the treatment of Alzheimer's Disease (AD). continued...

Ask Dr. Lou

Q&A - Questions from Subscribers

Q: I am the CEO and Founder of a drug development startup company and I am trying to raise venture capital to commercialize some promising new drug candidates. I haven't had much luck. Our lead candidates, from R&D studies funded through an NIH SBIR grant, show a great deal of promise in several therapeutic areas. But I am finding that the private equity community (Angels and VCs) is not interested in providing any funding. Can you help or suggest something?

A: To paraphrase that familiar saying, you are "caught between a rock and a hard place". The current investment climate almost exclusively favors companies with drug candidates with completed preclinical testing and, arguably, early stage Phase I/II testing. And, Catch 22, clinical testing requires a great deal of funding.

The current investment climate may change in a few years as larger companies and private equity investors exhaust the supply of companies with early stage clinical test results. But that doesn't do you any good right now. continued...


On the Lighter Side

Cartoon



Notable Quote

"They say money talks, but the only thing it ever said to me was good-bye." -- Joe Louis



Stock Market Performance

  • The Amex Biotech Index (BTK) up 14.9% for Q3 2005 and +19.2% YTD
  • The Amex Pharmaceutical Index (DRG) up 0.3% for Q3 2005 and +1.7% YTD
  • The Nasdaq Biotech Index (NBI) up 2.1% YTD for the quarter ending Q3 2005

Useful Resources




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