PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Hercules’ portfolio companies raise additional equity capital

Hercules Technology Growth Capital’s life sciences portfolio companies, Novasys Medical and Aveo Pharmaceuticals, have each raised additional equity capital.

Hercules Technology Growth Capital’s life sciences portfolio companies, Novasys Medical and Aveo Pharmaceuticals, have each raised additional equity capital.

Additionally, Portola Pharmaceuticals and Merck have entered into a worldwide license agreement.

‘There is no question that we continue to experience a tough capital raising environment for many of our portfolio companies; however, we are also starting to see some very encouraging signs of improvements as evidenced by the successful capital raising and strategic partnerships from select portfolio companies, especially in the life sciences sector,’ says Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules. ‘We are still seeing a very long capital fund raising process for many of our portfolio companies, which we expect will continue through the remainder of 2009, adding funding uncertainty to a select group of our companies. That said, select Hercules’ portfolio companies continue to successfully raise capital and reach significant milestones in the face of a myriad of challenges as a result of our distressed economic environment.’

Novasys Medical, developer of the Renessa treatment for female stress urinary incontinence, recently announced that it received USD18.95m in the second tranche of its previously announced series D preferred stock financing. Hercules participated in the second tranche as well as the first tranche in May 2008.

Aveo Pharmaceuticals, a late-stage biopharmaceutical company focused on the discovery and development of novel, targeted cancer therapeutics, recently announced the expansion of a drug discovery and translational research collaboration alliance with Osi Pharmaceuticals. Under the terms of the expanded alliance, Osi will pay Aveo a total of USD20m at closing, USD5m as an upfront cash payment and USD15m of which is the purchase of additional equity in Aveo. In addition, Osi will provide Aveo research funding over the next two years and the potential to achieve additional royalties and milestones.

Portola Pharmaceuticals, a developer of therapeutics for acute and chronic cardiovascular and vascular disease, has signed an exclusive global collaboration and license agreement with Merck for the development and commercialization of betrixaban, an investigational oral Factor Xa inhibitor anticoagulant currently in phase II clinical development for the prevention of stroke in patients with atrial fibrillation. In return for an exclusive worldwide license to betrixaban, Merck will pay Portola an initial fee of USD50m. Portola is eligible to receive additional cash payments totaling up to USD420m upon achievement of certain development, regulatory and commercialization milestones, as well as double-digit royalties on worldwide sales of betrixaban, if approved.

Hercules Technology Growth Capital is a Nasdaq traded specialty finance company providing debt and equity growth capital to technology and life science companies at all stages of development. Founded in December 2003, the company primarily finances privately held companies backed by leading venture capital and private equity firms.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured