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Novartis AG to Acquire Protez for up to $400 Million
June 4, 2008, Summary: Protez Pharmaceuticals announced today that it has signed a definitive agreement to be acquired by Novartis AG [NYSE:NVS], a $38.1 billion pharmaceutical company based in Basel, Switzerland. Under the terms of agreement, Novartis will acquire Protez for up to $400 million in cash, of which $100 million will be paid at closing and of up to $300 million will be paid if certain clinical milestones, regulatory approvals, and commercial targets are achieved. Protez will become a standalone subsidiary of Novartis, maintaining its operations in Malvern, Pennsylvania.
Oracle Healthcare Acquisition Corp. and Precision Therapeutics Announce Definitive Merger Agreement
December 4, 2007, Summary: Oracle Healthcare Acquisition Corp., a publicly-traded special purpose acquisition company, announced that it has entered into a definitive merger agreement providing for the acquisition of Precision Therapeutics (PTI). Under the agreement, PTI would be the surviving corporation in a merger with a subsidiary of Oracle. Upon completion of the merger, it is expected that Oracle would apply to have its shares trade on NASDAQ. PTI President and CEO Sean McDonald would become President and CEO and a director of the combined company, which would be headquartered in Pittsburgh.
German Firm Pays $200 Million for Renal Solutions
Pittsburgh Business Times, November 29, 2007, Summary: Fresenius Medical Care, the largest integrated provider of products and services for dialysis patients in the world, acquired Renal Solutions for $190 million in cash and $10 million in assumed debt. Fresenius’ CEO Dr. Ben Lipps called the acquisition an important step to advance the company’s technology. Future innovations may include a possible “wearable” kidney, according to a statement from Dr. Lipps. Renal will be a wholly owned subsidiary of Fresenius and will remain in the Pittsburgh area.
CyOptics Acquires Inplane Photonics
November 7, 2007, Summary: CyOptics announced the acquisition of Inplane Photonics, a leading manufacturer of Planar Lightwave Circuits (PLCs) for optical networks in telecommunications and defense applications. Terms of the transaction were not disclosed. Inplane’s unique industry leading silica-on-silicon PLC technology enables the integration of optical circuits for data transmission, distribution, detection and conditioning on multi-function silicon chips. This integration allows the miniaturization of components for optical communication networks in a variety of industries. The acquisition expands CyOptics’ Photonic Integrated Circuits (PICs) technology platforms through the combination of monolithic and hybrid integration of InP laser and detector arrays onto PLCs. This integration will dramatically reduce the number of individual components required, thereby increasing the functionality and lowering the cost of the overall solution.
Plextronics Receives Investment from Applied Ventures to Expand Development of Printed Electronics Technology
November 6, 2007, Summary: The company received a strategic investment by Applied Ventures, LLC, the venture capital arm of Applied Materials, Inc. The investment will help Plextronics continue to expand its product development and manufacturing capabilities, as well as increase its investment in sales and marketing activities. This investment comes on the heels of Plextronics’ recently closed $20.6 million Series B financing led by Solvay North America Investments LLC, with participation by Birchmere Ventures, Draper Triangle Ventures, Firelake Capital Management, and Newlin Investment Company. The company has raised a total of $41 million in equity capital over the last five years.
Renal Solutions, Inc. Announces FDA 510(k) Clearance of New Design of the Allient Sorbent Hemodialysis System for Chronic and Acute Hemodialysis
October 22, 2007, Summary: Renal Solutions announced that it received 510(k) clearance from the FDA for its newly enhanced Allient Sorbent Hemodialysis System in chronic and acute hemodialysis applications. The new system features improvements in ease of manufacturing, service and user-friendliness. In preparation for the Allient System commercialization, the company is also launching its SMARRT platform and campaign, which will introduce the benefits of advanced sorbent therapy to the renal community. SMARRT therapy utilizes a gentle, patient-driven technology which enables short, standard, or extended duration hemodialysis therapy using just 1.5 gallons of drinking water. The small dialysate quantity made possible by sorbent technology provides an inherent volume safety not possible with conventional hemodialysis technology. The Allient System will be the first dialysis system to bring SMARRT technology to the market, opening new treatment options to dialysis professionals and patients.
Inspired Technologies Obtains FDA 510(k) Clearance for the VIAspire Oxygen Portable
October 22, 2007, Summary: Inspired Technologies announced it has obtained FDA 510(k) clearance for its VIAspire Oxygen Portable, a key component of the VIAspire Personal Oxygen System. The lightweight, long duration and quick-to-fill portable provides a ready supply of liquid oxygen for patients requiring oxygen therapy. Unlike other systems that focus on oxygen conservation, the VIAspire system focuses on oxygen saturation. The VIAspire Oxygen Portable fills faster and lasts longer than transfilled gas portables since it docks to the VIAspire Liquefier. Previously, frequent and expensive deliveries of liquid oxygen limited patient access. Now with the VIAspire Liquefier, which creates liquid oxygen in the home from the patient’s oxygen concentrator, a ready supply of liquid oxygen is always available for the patient.
PTC Therapeutics Announces Additional Results from Phase II Study of PTC124 in Duchenne Muscular Dystrophy
October 18, 2007, Summary: PTC Therapeutics announced additional data from a Phase II clinical trial of PTC124 in patients with Duchenne muscular dystrophy (DMD) due to a nonsense mutation. The results, which include data from all three cohorts of the study, show that administration of PTC124 is associated with qualitative increases in muscle dystrophin expression and with reductions in serum creatine kinase values.
PTC Therapeutics Announces Pharmacokinetic and Safety Results from Phase II Study of PTC124 in Duchenne Muscular Dystrophy
October 11, 2007, Summary: PTC Therapeutics announced pharmacokinetic and safety data from a Phase II clinical trial of PTC124 in patients with Duchenne muscular dystrophy (DMD) due to a nonsense mutation. The results, which include data from the third and final cohort of the study, showed that treatment with PTC124 appeared well tolerated at all three dose levels and target plasma concentrations were achieved at the mid- and high-dose levels.
Inspired Technologies Announces Latest Round of Financing
October 2, 2007, Summary: Inspired Technologies announced the closing of its latest financing round. Birchmere Ventures, Cardinal Partners, Draper Triangle Ventures, and Innovation Ventures have joined in funding the company’s next stage of growth. Founded in May 2005 as COPD Partners, the company anticipates deploying the proceeds to fuel its current product launch and accelerate its technology pipeline of innovative respiratory products.
Inspired Technologies Obtains FDA 510(k) Approval for the VIAspire Liquefier
September 27, 2007, Summary: Inspired Technologies announced it has obtained FDA 510(k) approval for its VIAspire Liquefier. The VIASpire Liquefier makes liquid oxygen in the home for patients requiring oxygen therapy, such as those with Chronic Obstructive Pulmonary Disease. The entire VIAspire Personal Oxygen System will give patients the freedom and confidence to lead more active lives. The VIAspire Liquefier maintains two liters of liquid oxygen that are always available to the patient.
PTC Therapeutics Announces $20 Million Strategic Investment from Celgene Corporation
September 13, 2007, Summary: PTC Therapeutics announced that publicly-traded Celgene Corporation will make a $20 million investment in PTC. At the same time, PTC will grant Celgene an option for an exclusive research and option agreement on two oncology targets for the development of the orally bioavailable small molecules through the application of PTC’s GEMS technology.
Chemical Company Solvay Leads $20M Financing for Plextronics
VentureWire, August 31, 2007, Summary: Plextronics raised $20 million in its second round of financing as it looks to commercialize its photovoltaic and printed electronics technologies. The round was led by Solvay North America Investments LLC, a subsidiary of the Brussels-based Solvay Group.
Precision Seeks $80.5M in IPO
Pittsburgh Business Times, August 31, 2007, Summary: Precision Therapeutics is planning an initial public offering aimed at raising up to $80.5 million. Underwriters include JP Morgan and Piper Jaffray. Proceeds will be used to expand sales and marketing for the company’s product, ChemoFX, to fund research and development programs and clinical studies, and for additional capital expenditures. In 2006, Precision closed on a $20 million venture capital round from a number of investors including Birchmere Ventures, Quaker BioVentures, Adams Capital Management, Draper Triangle Ventures, and TVM Techno Venture Management.
Plextronics’ Organic Solar Cell Technology Breaks World Record: NREL Certifies Cell Efficiency
August 9, 2007, Summary: The company announced that its photovoltaic technology achieved a world record in the conversion of solar light to power efficiency. The company’s result of 5.4 percent establishes a new world record for single layer organic solar cells as certified by the National Renewable Energy Laboratory (NREL) in Colorado.
Metabolex Raises $32 Million to Accelerate Clinical Development Programs for its Pipeline of Drug Candidates in Metabolic Disease
April 19, 2007, Summary: The company announced that it has raised $32 million in a Series D financing led by MPM BioEquities. New investors AllianceBernstein, Deerfield Management, and T. Rowe Price participated in the round along with existing investors. Proceeds from this financing will be used to accelerate the clinical testing of MBX-8025 and the development of several promising preclinical programs. Kurt von Emster, Portfolio Manager for MPM BioEquities Fund, stated that “…Metabolex’s multi-prong approach addresses both the need to prevent the onset of diabetes and to treat its associated conditions. We believe this approach may create extraordinary value…”.
CyOptics to Acquire Apogee Photonics
March 20, 2007, Summary: The company signed a definitive agreement to acquire Apogee Photonics, a leading supplier of laser sources for the fast growing 10Gb/s and emerging 40Gb/s markets. This acquisition extends the company's high-speed source laser capabilities and positions CyOptics with the most comprehensive portfolio of InP-based transmit and receive optical chips and components for telecommunications and data communications applications. Apogee Photonics manufactures high-speed lasers and offers a broad portfolio of short and long reach products.
Consona Corporation Closes Acquisition of Knova Software
March 14, 2007, Summary: Consona Corporation (formerly M2M Holdings), the privately held holding company jointly owned by Battery Ventures and Thoma Cressey Bravo, announced it has closed on its acquisition of Knova Software. The all-cash transaction was valued at $47 million.
USDC Awards Plextronics Phase II of $1.8 Million Contract to Expand Plexcore HIL Development for OLED Displays
February 7, 2007, Summary: The U.S Display Consortium (USDC), an industry-led public/private partnership providing a common forum for flat panel display manufacturers and developers, FDP users and the supplier base announced that Plextronics received Phase II funding of a $1.8 million contract to support the continued development of Plexcore technology to increase the lifetime and efficiency of organic light emitting diode (OLED) displays.
PTC Therapeutics Announces Strategic Drug Discovery Collaboration with Pfizer Utilizing PTCs GEMS Technology Platform
January 8, 2007, Summary: The company announced an exclusive research collaboration and licensing arrangement with Pfizer, Inc. for the development of pharmaceuticals through the application os its GEMS (Gene Expression Modulation by Small-molecules technology. Under the terms of the agreement Pfizer made an initial upfront payment of $10 million, will purchase an equity stake of $10 million, and will provide supportive funding for PTCs research efforts. At Pfizer's option, the collaboration may include up to ten targets and PTC could earn up to $121 million in milestones per target based on the achievement of certain development, regulatory, and commercial goals. Pfizer will receive exclusive worldwide rights and pay PTC royalties on worldwide net sales of any products resulting from this collaboration.
Cvent Offers New Web Survey Product
October 4, 2006, Summary: Cvent announced its new web based survey product Contact Intelligence Web Surveys. The introduction of the Web Surveys tool marks the official launch of Cvent’s Contact Intelligence Product Suite that provides clients with user-friendly, web-based tools to streamline business processes. The Web Surveys application was developed based on years of client feedback from event-related surveys and in response to the growing demand for a professional stand-alone survey tool for marketers, HR managers, trainers, event managers and customer care managers. This application enables organizations to better understand clients, members, employees and the marketplace and provides full featured reporting with the ability to customize each phase of the survey process.
DEMOfall – 18 Must See Products: TotalView lets you see everyone in the board room
Network World, September 25, 2006, Summary: Today’s videoconferencing systems are one-dimensional, with no peripheral vision on the cameras, leaving many participants in a boardroom or other group setting unable to fully participate and engage with other attendees. Be Here’s TotalView conference system melds VoIP and videoconferencing. Its camera/phone combo captures audio and video from the entire room and streams it to remote participants, where they can individually navigate the camera to create a separate view of the room in a multi-pane navigator.
Plextronics Recognized by Wall Street Journal for Technology Innovation – Prestigious Award Recognizes Groundbreaking Developments for Printed Electronics
September 13, 2006, Summary: Plextronics, Inc., a world leader in developing active layer technology for printed electronic devices, was honored by the Wall Street Journal as a runner-up for the 2006 Wall Street Journal Innovation Award in Materials and Other Base Technologies. A Wall Street Journal editor initially screened more than 600 applications for this award and a panel of judges selected 12 category winners and 37 runners-up. In selecting winners, judges considered whether the technology truly represents a breakthrough from conventional methods, rather than just an incremental improvement. Breakthroughs in active layer technology will remove one of the last barriers to broad market commercialization of printed electronic devices. The printed electronics market is estimated to be $50+ billion industry by 2015.
NuPathe Closes $15 Million Financing
September 13, 2006, Summary: NuPathe, a privately held specialty pharmaceutical company, completed a $15 million round of private equity financing co-led by Birchmere Ventures and BioAdvance Ventures, and included significant additional funding from Safeguard Scientifics, Inc. NuPathe specializes in the development of therapeutics for the treatment of neurological and psychiatric disorders including migraine, Parkinson’s disease and schizophrenia. Its lead product uses SmartRelief, the company’s novel, transdermal patch technology, to deliver sumatriptan to treat migraine.
Plextronics Lights Up with $13.1 M Series A
VentureWire, August 15, 2006, Summary: Eyeing both the photovoltaic and the lighting and display markets, printed-electronics technology developer Plextronics, Inc. has raised $13.1 million in Series A funding led by Birchmere Ventures. Plextronics has developed a method for producing organic material that is adjustable to the different energy demands of light emitting diodes. And the company's technology can also be applied to photovoltaic cells to make solar cells that absorb more light and produce more energy. New investors in the Series A round included Draper Triangle Ventures and Firelake Capital Management. Previous investors in the company's $3.4 million seed financing also participated in the latest round, including SEA Ventures, a fund managed by Smithfield Trust Co., the Pennsylvania Department of Community and Economic Development, and Innovation Works, a state-funded venture firm.
Lightningcast Sells To AOL Amid Hot Video Ad Market
VentureWire, May 22, 2006, Summary: TimeWarner Inc.’s AOL LLC acquires Lightningcast Inc. and extended its reach further into the exploding market for creating and monetizing videos online. AOL has worked with Lightningcast since 2002, using its platform for audio programming, video streaming advertisements, and for the recently launched broadband network, In2TV. Formed in 1999, the company raised more than $25 million across four financing rounds. Investors included Birchmere Ventures, Redleaf Group, BlueRun Ventures, Global Internet Ventures, New Markets Growth Fund, Washington Dinner Club, and WWC Capital Group. Under the terms of the deal, AOL will combine Lightningcast’s technology and advertising network with its Advertising.com business. Lightningcast and its 34 employees will remain in Washington, D.C. and will operate as a wholly-owned subsidiary of Advertising.com.
YM Biosciences Completes Acquisition of Eximias
May 9, 2006, Summary: Toronto-based oncology drug developer YM Biosciences, Inc. [AMEX:YMI] announced that it completed the acquisition of Eximias Pharmaceutical Corporation. YM’s lead drug, tesmilifene, is a small molecule chemopotentiator currently undergoing a 700-patient pivotal Phase III trial in metastatic and recurrent breast cancer. As a result of the transaction, YM gains more than $29 million in cash and a seasoned oncology management team. Chairman and CEO David Allan stated that the transaction expands YM’s capabilities for the development and commercialization of its products currently in clinical development and establishes a presence for YM in the USA, particularly within the oncology and financial communities. Eximias will become a wholly-owned subsidiary of YM, named YM BioSciences USA, and will serve as the company’s base of operations in the United States. Ms. Gail Schulze, President and CEO of Eximias, will become President of YM BioSciences and CEO of the US subsidiary.
Precision Therapeutics Lands $20M in Venture Capital
Pittsburgh Business Times, February 20, 2006, Summary: Precision raised $20 million from venture capitalists, which was 40% above the $12 million that the company originally sought when it began canvassing potential backers last summer. Quaker BioVentures, a $280 million Philadelphia based venture capital firm specializing in life sciences companies, led the round. Richard Kollender, a Quaker partner appointed to Precision's board, said he was impressed by the company's "phenomenal technology" and the capability of its management team. Dennis Yablonsky, Secretary of the Pennsylvania Department of Community and Economic Development, stated that this latest funding round is evidence of the growing strength and maturing of the life science industry in southwestern Pennsylvania.
Birchmere Investment Spurs Relocation of Colorado Firm to Region
Pittsburgh Business Times, February 3, 2006, Summary: A $2.5 million investment by Birchmere Ventures in COPD Partners prompted this medical device start-up to relocate to Pittsburgh from Boulder, Colorado. COPD is developing a prototype of an oxygen generation and storage system for home use by people suffering from chronic obstructive pulmonary disease. CEO Dan Easley stated that the company expects to submit its system to the FDA later this year and expects to employ 15 by year-end. He credited economic development programs offered by the Governor’s Action Team, particularly for life sciences start-ups, were a big factor and attraction for relocating to Pittsburgh. Birchmere Partner Ned Renzi stated that the company’s move to Pittsburgh is especially fitting, given the State’s decision to use tobacco settlement money to nurture its fledgling life sciences industry.
Venture Capital: Steel City Bends into Seattle Mold
Seattle Post-Intelligencer, February 3, 2006, Summary: Could the smokestack-belching image that has defined Pittsburgh for decades eventually give way to a high-tech city that more closely resembles Seattle? Birchmere Partner Chuck Dietrick stated he knows it won't be easy, but he thinks the Steel City is slowly making the transformation to a place where innovative software, semiconductor and life science startups can thrive. Dietrick further stated that a lot of the pieces are here to create what has happened in other regions, but the missing element, largely, is additional venture capital money. Both want to be leaders in the 21st century economy. While Seattle may appear to be better positioned to achieve that goal -- with anchors such as Microsoft, Amazon.com and Expedia and dozens of heavily funded startups -- Pittsburghers argue that their city has a lot going its way.
CyOptics Closes $27 million Series F Financing Round
October 5, 2005, Summary: CyOptics, Inc., a leading supplier of high-speed optical chips and components for broadband access, metro, and long-haul communications systems, announced the closing of its $27 million Series F funding round with $3 million from Birchmere Ventures. CyOptics develops active indium phosphide laser and detector components that are manufactured on a highly flexible, nano-tech capable robotic assembly process that delivers high uniformity and low cost. Birchmere joins prior investors JVP, Sprout Group, TowerBrook Capital Partners, and Eurofund, which collectively invested $16.5 million in the April first closing. Birchmere Partner Sean Sebastian joined the board of CyOptics.
Protez Pharmaceuticals Closes $15 million Financing Round to Progress Lead Antibiotic Compound
August 24, 2005, Summary: Protez Pharmaceuticals, a developer of innovative antibiotics to combat drug-resistant and life-threatening infections, closed on a $15 million Series B financing. The deal was co-led by Birchmere Ventures and BioAdvance Ventures (an early-stage life sciences company managed by Quaker BioVentures). Proceeds from this financing will be used to accelerate development of its lead compound SMP-601, a potent injectable antibiotic with a uniquely broad spectrum of activity, against both drug resistant gram-positive and many gram-negative pathogens. The company plans to initiate clinical trials in 2006.
Governor Rendell Announces Record Setting Employment Data; State Aids in Pittsburgh Technology Company?s Expansion
June 21, 2005, Summary: Gov. Edward G. Rendell announced the number of people employed in Pennsylvania reached an all-time-high in May of 6,045,000 ? shattering the previous month?s record by adding 28,000 people to the employment roll during the month. Statewide, the unemployment rate dropped to 4.8 percent in May, the lowest level since July 2001. Since taking office in 2003, Governor Rendell implemented an historic economic stimulus program aimed at attracting and retaining jobs in the commonwealth. Rendell made the announcement during a press conference to announce the creation of 61 new jobs and the retention of 10 existing positions as a result of LogicLibrary?s expansion at its Pittsburgh headquarters. A leading provider of development software and services, the company is expanding due to increased customer demand. Birchmere Ventures Partner and LogicLibrary Chairman Chuck Dietrick stated that Pennsylvania has become a hub for technology and life sciences innovation; however to fully realize the state?s promise, it is critical that high potential companies like LogicLibrary be successful in the marketplace. Dietrick added that the Governor?s support helps to further catalyze the company?s rapid growth and smooth a path to long-term success.
Dr. Bernard Cambou Joins StageMark, Inc.
April 7, 2005, Summary: Birchmere Ventures announced today that Bernard Cambou, Ph.D., one of its partners, will become Chief Executive Officer of StageMark, Inc., a start-up he previously co-founded with clinicians from the University of Pittsburgh Medical Center (UPMC) to develop and commercialize a protein-based biomarker platform for autoimmune disease diagnosis and monitoring.
Metabolex?s investigational treatment for Type 2 diabetes meets primary and secondary endpoints in Phase II trial
March 22, 2005, Summary: Metabolex announced that Phase II clinical trial results for its lead product candidate, metaglidasen, a novel, oral insulin sensitizer, showed that it met the study?s primary endpoint of reducing hemoglobin A1c in patients with Type 2 diabetes. The proof-of-principle trial demonstrated that metaglidasen had comparable efficacy to currently marketed insulin sensitizers without causing the dose-limiting side effects of edema and weight gain often experienced by patients on those drugs. The secondary endpoints of lowering triglycerides and uric acid were also met. Dr. David B. Karpf, Chief Medical Officer of Metabolex and Clinical Associate Professor of Medicine at Stanford University School of Medicine, stated that to have a drug that addresses insulin resistance without causing the typically observed side effects of weight gain and edema, which should also predict a lower risk of congestive heart failure, would be a significant advance in the treatment of this common and often debilitating disease.
Renal Solutions, Inc. completes $16.5 million Series B financing and will present at SG Cowen Health Care Conference
March 8, 2005, Summary: Exclusive provider of advanced sorbent hemodialysis products and services, Renal Solutions announced that it closed on a $16.5 million financing round led by new investors Triathlon Medical Ventures and PA Early Stage Partners. Joining this round were existing investors Birchmere Ventures, Blue Chip Venture Company, and Draper Triangle Ventures. Proceeds of this financing will provide the company with the capital necessary to introduce its proprietary sorbent hemodialysis system to the acute and chronic dialysis markets and to conduct clinical trials for the home market once FDA approval is obtained.
Metabolex reports positive Phase I clinical trial for treatment of Type 2 diabetes
March 3, 2005, Summary: Metabolex announced positive early clinical trial results for MBX-2044, a novel investigational, oral insulin sensitizer for Type 2 diabetes, which is designed to eliminate the dose-limiting side effects of the currently marketed sensitizers. Data from the Phase I dose-escalating study showed that the drug was well tolerated in healthy volunteers. Dr. Kenneth Polonsky, Professor of Medicine at the Washington University School of Medicine, stated that while currently marketed sensitizers are effective in controlling blood glucose levels, they have significant side effects in terms of edema and weight gain. He further stated that Metabolex is applying its expertise in the biology of diabetes to develop improved insulin sensitizers that can lower glucose levels without causing these side effects.
Like father, like son: O?Neills back California tech firm
Pittsburgh Business Times, January 21-27, 2005, Summary: Father and son angel investors Paul O?Neill Sr. and Paul O?Neill Jr. have kicked off 2005 by staking Be Here Corporation from its enterprise, O?Neill Advisory Services, run by Paul O?Neill Jr. This investment marks the pair?s second deal, and its first deal with Birchmere Ventures. Paul O?Neill Jr. is a lawyer turned financial professional who returned to Pittsburgh after several years on the West Coast. The senior Mr. O?Neill is the former Alcoa Chairman and U.S. Treasury Secretary. Birchmere Ventures led this $5 million investment round.
Startups see more venture funding; 04 marked first increase since dot-com crash
San Francisco Chronicle, January 21, 2005, Summary: Venture capital funding rose for the first time in four years in 2004, aided by growing economic optimism, specifically in technology and health care, according to research to be released today. According to VentureOne, most of the money went to information technology firms, which got $11.34 billion, but the biggest percentage increase was in health care, where startups got $6.58 billion, an increase of 11 percent. This jump in investments boosted San Francisco Bay area startups. Among the top venture funding recipients was Hayward-based pharmaceutical firm Metabolex, a Birchmere Ventures and Bay City Capital portfolio company, which is focused on developing drugs for diabetes. The company raised $44 million in venture funding during the last quarter of 2004, part of a $75 million package it has received since August 2003.
Be Here gets $5M Series A Recap For 360-Degree Video Conferencing Device
VentureWire Professional, January 20, 2005, Summary: Be Here Corporation, which is developing 360-degree video conferencing technology, said it has raised $5 million in a Series A round of financing, a recap round for the company. Birchmere Partner Chuck Dietrick and chairman of Be Here's board, stated that the round will stay open for 30 days. Toward mid-2005, Mr. Dietrick anticipates Be Here will raise between $5 million and $10 million in another round of financing, with product release expected at the beginning of 2006.
Be Here completes $5M Series A financing round
January 19, 2005, Summary: Be Here Corporation announced today the completion of its oversubscribed Series A financing round for $5 million. Led by Birchmere Ventures, participants include Paul O?Neill Jr., and Paul O?Neill Sr., former CEO of Alcoa and United States Secretary of the Treasury, and all members of the company?s management team. The company plans to raise additional capital towards the middle of 2005 to fund its go-to-market ramp up.
Metabolex raises $44 million in additional private financing
November 30, 2004, Summary: Metabolex announced that it has raised $44 million in a private equity financing led by Alta Partners. Additional new investors in the round include Venrock Associates, Versant Ventures and Novo A/S. Previous Metabolex investors participating in this closing included Birchmere Ventures, Bay City Capital, and KBC Bank & Insurance Group, along with VantagePoint Venture Partners. This financing is the third close of the company?s financing announced in August 2003, bringing the total amount raised in this round to $75 million.
Local concern picks up Silicon Valley firm
Pittsburgh Post-Gazette, September 15, 2004, Summary: In a break from the norm, a Pittsburgh tech company is acquiring a Silicon Valley firm instead of the other way around. LogicLibrary plans to buy BugScan Inc., a tiny software security company based in Sunnyvale, California, for an undisclosed sum. BugScan is an affiliate of security software maker HBGary LLC. BugScan?s customers include Symantec Corp. and Verizon Communications.
EXIMIAS named among top 15 emerging biotech companies of 2004
July 28, 2004, Summary: Eximias was selected as a member of FierceBiotech?s annual ?The Fierce 15?, a list of the top emerging biotech companies of 2004. Its Editor-in-Chief was impressed with Dr. Elizabeth A. Corsi, President and CEO, stating that her shrewd decision to snap up Thymitaq could prove to be a huge win for the company.
Neolinear sale is latest in surge of local acquisitions
The Pittsburgh Business Times, April 9, 2004, Summary: Insiders are calling the acquisition of Pittsburgh-based Neolinear by Cadence Design Systems, Inc. [NYSE: CDN] one of the biggest local deals of 2004, a year already surging with acquisition activity. Neither digital design firm would disclose the terms of the agreement, however sources involved in the transaction said the price tag tops $100 million.
Cadence to acquire Neolinear: Neolinear technology to accelerate design cycle and enhance Silicon yield
April 6, 2004, Summary: Cadence Design Systems, Inc. [NYSE: CDN] announced its plans to acquire Neolinear, Inc., a Birchmere portfolio company. The Neolinear team will bring additional strong A/MS and RF expertise into Cadence and play a key role in driving ongoing innovations for improving yield and speeding IP reuse in the Cadence Virtuoso custom design platform. Neolinear's NeoCircuit and NeoCell are already an extended part of the industry-leading Virtuoso platform through an OEM agreement between the two companies. Terms of the acquisition were not disclosed.
Birchmere buys stake in Berwyn company
The Pittsburgh Business Times, April 1, 2004, Summary: Birchmere Ventures bought an equity stake in Eximias Pharmaceutical Corp., a privately held drug company based in Berwyn, Pennsylvania. Birchmere's investment was part of a $63.5 million private stock placement, the largest such deal by a life sciences company in the Philadelphia region this year. Birchmere is the Pittsburgh area's sixth-largest venture capital firm with 2002 total capital of $115 million.
EXIMIAS Pharmaceutical Corporation announces $63.5 million private placement
March 31, 2004, Summary: EXIMIAS Pharmaceutical Corporation announces the closing of a $63.5 million private placement through a Series D financing led by Cross Atlantic Partners and co-led by Quaker BioVentures. New investors include Birchmere Ventures, New Enterprise Associates, OrbiMed Advisors, Easton Hunt Capital Partners, Cross Atlantic Capital Partners, Pacific Rim Ventures, and Emerging Technology Partners. Ferghana Securities served as the placement agent and financial advisor for this transaction, one of the largest private biopharmaceutical financings in the past two years.
Paradigm Genetics completes acquisition of TissueInformatics, Inc., positioning Paradigm Genetics as a systems biology leader
March 11, 2004, Summary: Paradigm Genetics [NASDAQ: PDGM] completes the acquisition of Birchmere portfolio company, TissueInformatics (TII), through an all-stock transaction in which PDGM will issue 3,402,839 shares of common stock to TII shareholders immediately, with a value of approximately $4.5 million, and an additional 2.7 million shares will be available for the successful achievement of performance milestones on or before December 31, 2004. This acquisition puts PDGM at the forefront of the systems biology field and will accelerate the commercialization of its technologies to build a proprietary product portfolio in biomarker-based drug discovery.
Metabolex announces start of Phase II trial of its novel insulin sensitizer, MBX-102
March 2, 2004, Summary: Metabolex announced the start of its Phase II study of its investigational insulin sensitizer, MBX-102. The double-blind, placebo-controlled study will enroll approximately 200 patients with type 2 diabetes who are currently on insulin, but whose fasting blood-glucose levels are not well controlled. Researchers at 29 centers throughout the United States and Mexico will participate in the study, which is expected to complete in early 2005.
Paradigm synergies excite TI?s Johnson
Pittsburgh Post-Gazette, January 31, 2004, Summary: Pittsburgh adds another publicly traded company to its roster, this time in the biotech arena with North Carolina-based Paradigm Genetics? purchase of TissueInformatics.
Paradigm Genetics to acquire TissueInformatics creating a unique systems biology platform for life sciences discovery
January 29, 2004, Summary: Paradigm Genetics, Inc. [Nasdaq: PDGM], a biotechnology company, has entered into a definitive agreement for the acquisition of TissueInformatics, Inc., a Birchmere Ventures portfolio company. The acquisition will occur through an all-stock transaction in which approximately 3.4 million shares will be issued immediately and approximately 2.7 million additional shares are subject to performance milestones.
Tech firms feeling urge to merge
Pittsburgh Tribune-Review, January 27, 2004, Summary: Experts say last week?s $493 million merger of Pittsburgh-based FreeMarkets Inc. and Ariba Inc., a California competitor, could be the first of many in 2004 both here and across the nation. Chuck Dietrick states there is a definite uptick in merger and acquisition activity and that large and medium-size firms are scouring the market for start-ups that have their footing with key technologies and key customers.
Ariba and FreeMarkets Announce Strategic Merger Agreement
January 23, 2004, Summary: Ariba [NASDAQ: ARBA] announced a definitive agreement to acquire FreeMarkets, Inc. [NASDAQ: FMKT]. The transaction is valued at approximately $493 million. Ariba's broad suite of enterprise spend management software and services will complement FreeMarkets services-based sourcing and global supply management expertise. The integrated company will retain the Ariba name and combine the leadership teams of both companies.
Metabolex raises $4 million in second close of private financing for total funding of $31 million
January 12, 2004, Summary: Metabolex, Inc., a privately held pharmaceutical firm that discovers and develops drugs to treat diabetes and related metabolic diseases, raised an additional $4 million in a second close of its private equity financing, bringing the total raised to $31 million. Participants in the second close included Birchmere Ventures, Merlin Biomed Group, and CIBC World Markets.
$20M in tobacco funds will boost life sciences
The Pittsburgh Business Times, November 18, 2003, Summary: A local venture capital firm has formed a joint venture with a San Francisco firm to secure $20 million from the state Tobacco Settlement Fund to invest in start-up life sciences companies. Birchmere Ventures and Bay City Capital will pool the tobacco fund money in a new fund totaling between $150 million and $200 million that will target both life sciences and information technology companies both inside and outside the region.
Birchmere, partner land $20M in state tobacco funds
The Pittsburgh Business Times, November 17, 2003, Summary: The Pennsylvania Tobacco Settlement Investment Board has decided to award up to $20 million to Birchmere Ventures and Bay City Capital. The money is to be invested in life sciences companies in Pennsylvania.
BioBelievers
BioBelievers, Winter 2003, Summary: The stakes are high as four Pittsburgh foundations invest millions to turn the region into a national bioscience powerhouse. But they see it as one of the wisest bets in grantmaking. Beyond investor stagnation brought on from recent stock market tumbles, the longer view of the region?s private investment attraction potential shows strong success in leveraging. The amount of private, locally available venture capital has increased significantly over the last few years.
On Board...with Sean Sebastian: A look at the state of venture capital
May 2003: Much has been written about the decline in venture investing regionally and nationally since the bursting of the stock market bubble, most of it apocalyptic and much of it apocryphal. Written by Partner Sean Sebastian, this article provides factual information about the today?s venture investing climate, explains how venture capitalists are responding to current circumstances, and details why there is good reason to be bullish on the future of the industry. Excerpts from this article appeared in the May 2003 issue of TEQ Magazine.
Be Here Technologies Secures Additional Funding
April 2, 2003, Summary: Be Here Technologies, the leading panoramic imaging company, announced new investor Birchmere Ventures has led a round of funding. Birchmere Partner Chuck Dietrick will join the Be Here board of directors. Previous investors include Wasserstein Ventures, Totem Ventures, Enterprise Partners, Philips, and Kodak. Proceeds from this financing will be used to support next generation video conference and security imaging applications.
Rare Bird: Birchmere Venture's newest partner is "150 percent convinced" he can build a successful biofund in Pittsburgh
TEQ, January/February 2003, Summary: Birchmere Partner Bernard Cambou, Ph.D. moved to the region in May 2002 and brings an extremely rare combination of extensive academic and entrepreneurial experience to this region. While his first reaction that the notion of Pittsburgh and a biotechnology industry didn?t ring a bell, he researched the region?s strengths and weaknesses and recognized the quality and huge potential of its life sciences sector. Dr. Cambou believes there is great momentum in the region?s life sciences sector and he is convinced that Birchmere will be successful in establishing a top-performing biotechnology fund that is focused on providing smart money and building successful companies.
Perfect Pitch: Navigating between a VC?s red flags and hot buttons
Techyvent Pittsburgh, December 9, 2002, Summary: No matter what anyone else thinks or says, the main job of the CEO in a growing company is to raise money. And, as the fallout from the last two years of economic contraction and investor drought has demonstrated, the more money raised from angels, VCs, and strategic investors, the better. Birchmere Partner Ned Renzi was a panelist at the November 18 Pittsburgh Technology Council?s Venture Out panel session and discusses his views on both making a successful pitch to VCs as well as the red flags that seasoned VCs look for.
Optinel Raises $22.4M
TheDeal.com, December 5, 2002, Summary: Cable operators have spent billions in the past decade to upgrade delivery networks with a combination of fiber-optic lines and coaxial cable into customer sites. But they still need to upgrade systems at the core to offer additional services. Optinel produces optical switches that allow cable operators to boost capacity over existing last-mile delivery systems. Its strategy counts on the industry rolling out new broadband services to better compete with satellite dish networks and to broaden the industry's lead in broadband over traditional telecommunications service providers. Drake Johnstone, a cable industry analyst with Davenport & Co. in Richmond, Va., said some cable operators have already put a strong emphasis on providing additional broadband services to differentiate themselves from insurgent satellite TV providers. Johnstone further stated that cable operators are eager to invest in their cable operations even as other communications businesses are flagging.
Optinel Systems Secures $22.4 Million
Baltimore Business Journal, December 4, 2002, Summary: Maryland-based Optinel Systems, a developer of optical technologies for the cable industry, secured $22.4 million in venture capital for product development expansion. The investment was led by Birchmere Ventures, Court Square Ventures, and Teknoinvest. SilverHaze Partners, Four Seasons Ventures, the Dinner Club, and Isis Capital also participated in the financing. Additions to the company?s board are Chuck Dietrick (Birchmere), Randy Castleman (Court Square Ventures), and Steve Morrell (Teknoinvest).
Optinel Systems Secures $22.4 Million in Financing: New funds to solidify Optinel?s first-to-market advantage
Press Release, December 4, 2002, Summary: Optinel Systems, a provider of transport systems for the cable television industry, announces the completion of its Series B financing round totaling $22.4 million. Proceeds from this financing will be used to expand Optinel?s first-to-market advantage in transport and optical network systems for the cable market by advancing the deployment of Optinel?s products.
Optinel Systems Adds Investment Funding
Baltimore Sun Business Digest, December 4, 2002, Summary: Optinel Systems is expected to announce that it has secured $22.4 million in investment funding. It is the second round for Optinel Systems, which makes the boxes that distribute and carry signals for cable companies. The company has 36 employees and plans to add another 15 to 20 workers in the next six months. President and Founder Sandeep Vohra stated the new round of funding would help the company add to its sales and marketing team and enhance its product portfolio.
Health Care Firm Setting Up Shop: Local funding fuels move from Indiana
Pittsburgh Business Times, December 2, 2002, Summary: Renal Solutions, an Indiana-based developer of products to treat kidney disease, closed on a $15 million financing round and will relocate its corporate headquarters to Pittsburgh. The round was led by Birchmere Ventures and included Blue Chip Ventures, Amkey Ventures, Draper Triangle Ventures, UPMC, and Highmark Blue Cross Blue Shield. This deal marks the first time that competitors UPMC and Highmark have invested in the same financing round. Gary Glausser, Birchmere Partner, will represent the institutional investors on the Renal Solutions board.
Renal Solutions Completes $14.7 million Series A Financing for Development of the Allient? Sorbent Hemodialysis System
Press Release, December 2, 2002, Summary: Renal Solutions, the leading provider of sorbent hemodialysis products and services, announces the completion of a $14.7 million financing to accelerate development of the Allient? sorbent hemodialysis system. Peter M. DeComo, Chairman and CEO of Renal Solutions, believes the successful completion of this financing round provides the company the opportunity to finalize development and complete the FDA regulatory process. The company chose to establish its Corporate Headquarters and National Distribution Facility in Pittsburgh because of both strong investor support and the significant initiative by the Pittsburgh LifeSciences Greenhouse, including the University of Pittsburgh and Carnegie Mellon University, to foster growth of life sciences in the region.
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Wonder...Where is the Bread for your Bioventure?
TEQ, November 2002, Summary: Throughout the year, the region has been rallying that technologies like bioinformatics, drug discovery, tissue engineering, genetics, nanotechnology, and medical device manufacturing would eventually make us healthy, happy, and rich. The big question looming over the region's life sciences industry ? Who is going to pay for all of these hot biotech startups that we?re supposed to be spawning? Birchmere Partner Bernard Cambou, Ph.D. remains positive. This article presents a very candid look at the issues from many different perspectives.
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Pittsburgh Magazine Publishes its Fourth Annual list of 40 Under 40 Award Recipients
Pittsburgh Magazine, November 2002, Summary: Birchmere Partner Ned Renzi receives Pittsburgh Magazine"s "40 under 40" award, sponsored annually by Pittsburgh Magazine and the Pittsburgh Urban Magnet Project (PUMP). The "40 Under 40" award recipients spotlight the region?s up-and-comers. Tops in their respective fields, this diverse group makes the region a better place to live.
Is the Soft Economy Stifling Tech Innovation? Yes: With less funding for startup companies and internal corporate projects, the pace of innovation is slowing down
The following article was written by Ned Renzi and was published in the October 2002 issue of Optimize Magazine, part of the TechWeb Business Technology Network.
Getting Into Web Services - It's all about standardizing the way in which applications integrate with one another
The following article was written by Chuck Dietrick and was published in the May 31, 2002 issue of TechBiz, a supplement of the Pittsburgh Business Times
The Private Sector - Venture Capital Flowing: Entrepreneurship thrives in Pittsburgh despite technology, dot.com downturn
The following essay written by Sean Sebastian appeared in the May 21, 2002 issue of the Pittsburgh Post-Gazette's Business News section entitled "The Private Sector"
Nine area companies land $74 million in first-quarter venture capital: VC investment drops in first months of year
Pittsburgh Business Times, May 13, 2002, Summary: According to Growthlink Inc. 716 private U.S. companies received a combined $8.1 billion in equity investments during the first three months of 2002, with nine southwestern Pennsylvania companies receiving more than $74 million. Only two local venture capital firms - Birchmere Ventures and Future Fund -- did more than a single investment in regional deals. Both funds invested in TissueInformatics and LogicLibrary; Birchmere was the lead investor in the LogicLibrary deal. Chuck Dietrick stated the Fund's pipeline is pretty full and he expects more activity as 2002 unfolds.
Growing Web services industry strives to integrate the Internet: Making diverse programs, platforms work together
Pittsburgh Business Times, April 29, 2002, Summary: Web Services – a new promise for the Internet - the integration and interoperability of disparate software programs and technology platforms - will make business much less frustrating. This new promise is not only internal to a company, but will extend to suppliers customers. This seamless interoperability is being made possible by the convergence of protocols. Dietrick states that companies have recognized the value of applications talking to each other, enabling data to move more freely across an organization, in a seamless, and standardized, manner. As a result, Dietrick believes we have a foundation of companies that can go out and build solutions toward those protocols, which he believes will be adopted broadly by the industry.
Start-ups pitching for money at VC fair
Pittsburgh Post-Gazette, April 10, 2002, Summary: Though Pittsburgh entrepreneurs still have a difficult time raising money to fund their businesses, Gary Glausser, Steering Committee Chairman of The Three Rivers Venture Fair, stated that the momentum for investing in this region is quite strong. Fair officials hope entrepreneurs and their start-ups will obtain the capital they need. Top investment bankers, venture capitalists and angel investors from New York, Philadelphia, Boston, Baltimore, Washington, DC, Columbus, Cleveland, and West Virginia attended. To help get Pittsburgh's message across, City of Pittsburgh Mayor Tom Murphy and Pennsylvania Governor Mark Schweiker addressed the group.
Five venture capitalists share their thoughts on the state of the industry
Pittsburgh Business Times, April 1, 2002, [This interview was conducted with five Pittsburgh venture capitalists including Birchmere Ventures, PNC Technology Investors, Mellon Ventures, Draper Triangle Ventures, and Stonewood Capital Management.] Summary: Chuck Dietrick discusses his views on the issues, challenges, and changes in the industry. Dietrick sees venture investing picking up compared to a year ago, with Birchmere making an additional five or six investments in 2002. Along merger and acquisition (M&A) lines, Dietrick believes M&A activity should pick up within the next six to twelve months. On capital expenditures, Dietrick believes people generally underestimate the uptick in spending and sees quite a substantial upturn in this area. Also, Dietrick predicts forward looking companies will recognize a competitive advantage with the intelligent purchase and use of technology.
How techies and VCs walk a line between valuation panic and long-term goals
Pittsburgh Business Times, April 1, 2002, Summary: Though valuations have sharply decreased in the current economy, Dietrick discussed the importance of a venture capitalist striking a balance that's fair to both the company and investors. Establishing trust, providing proper incentives to motivate and excite management and employees is key to realizing the dream.
Birchmere Takes Lead on Web Services
TEQ, March 2002, Summary: Birchmere Ventures recently hosted a Web services roundtable discussion that drew CEOs, Fortune 500 executives, software architects and industry leaders to develop a big-picture grasp of what is, and what is not, happening in the space. According to Chuck Dietrick, web services are applications and/or application components that can be described, published, discovered, and executed over a network. As Dietrick explains, the revolutionary part is that web services fundamentally influence the way in which organizations buy, architect and build applications but, more importantly, their use can dramatically and favorably impact competitiveness. An organization that can streamline and automate the way it communicates and transacts with its customers, partners, and suppliers is an organization that can operate with a lower cost structure, react more nimbly, and foster more relationships throughout its value chain. Dietrick commented that one of the most promising local companies in the Web services space is LogicLibrary, a Birchmere portfolio company, which is positioning itself to become core infrastructure for companies adopting the Web services model.
Venture capital funds open wallets in fourth: Year-end investments in local companies on tear
Pittsburgh Business Times, February 11, 2002, Summary: Venture investments in local companies rebounded in the fourth quarter, nearly triple the amount invested in the third quarter. Though the bulk of the VCs investing here were not local, the role of local VCs has a direct impact on drawing in out-of-town VC firms. Chuck Dietrick stated that part of Birchmere's strategy is to syndicate its deals, requiring other deep-pocketed investors to be in on its deals. This minimizes the risk of an investment as well as provides access to higher quality deals. Over the past few years, Birchmere's funds have helped bring between $200-$250 million in outside dollars to the Pittsburgh region. Dietrick believes Pittsburgh has a lot of talent, and outside VCs investing here generally want local VC participation.
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