VentureBeat

Featured companies: Acceleron Pharma, Bledsoe Brace Systems, Eurobiobiz, Genoptix, Harmony Information Systems, ImmuneWorks, Pasteuria Bioscience, Renal CarePartners, Quantum Genomics, Synergy Software, Vitreo Retinal Technology

UPDATED: Expanded items on Genoptix and Acceleron Pharma.

Diagnostics biotech Genoptix prices IPO above range, raises up to $98M — Genoptix became one of the first biotechs in a long time to demonstrate some oomph with an IPO, pricing its shares above its expected range and then soaring nearly 50 percent in its first day of trading. Genoptix priced its shares at $17 apiece, above its expected range of $14 to $16, netting itself as much as $97.8 million in the process. (Actually, existing shareholders sold close to three-quarters of a million shares in the IPO, so the proceeds to Genoptix are more like $85.6 million.)

At the very least, the positive reception appears to support the notion that biotech investors are currently more interested in reliable service businesses such as Genoptix’s diagnostics work than they are in traditional biotech moon shots, since they offer lower risk even at the cost of slower growth. Perhaps there’s hope for Talecris Biotherapeutics after all.

We’ve covered the company here and here. The offering initially valued Genoptix at $265.2 million, although today’s share run-up to $25.35 now values the company at $395.5 million. Genoptix provides diagnostic services to cancer and blood-disease specialists in order to help with diagnosing and selecting appropriate treatments for various cancers.

Acceleron Pharma draws in $31M for tissue-regeneration drugs — Cambridge, Mass.-based Acceleron Pharma, a biotech focused on “regenerative” drugs that target a family of growth and development proteins, raised $31 million in a third funding round. Investors included Bessemer Venture Partners, MPM BioEquities, QVT Financial, Advanced Technology Ventures, Flagship Ventures, OrbiMed Advisors, Polaris Ventures, Sutter Hill Ventures and Venrock.

The company’s lead drug candidate, ACE-011, aims to stimulate bone regrowth in cancer patients. That drug should move into mid-stage clinical trials in the first quarter of next year. The company intends to begin early human tests of two other drugs — one designed to increase muscle mass and strength, the other an “anti-angiogenesis” cancer drug — next year.

OTHER HEADLINES OF NOTE:

• Medical-IT co. Harmony Info raises $28M, acquires Synergy Software (release)
• Vitreo Retinal Tech adds $3M to round for eye drugs (PE Hub)
• ImmuneWorks gets $300K for lung-disease drugs (release)
• Bledsoe Brace sells majority stake to Essex Woodlands (PE Hub)
• Quantum Genomics acquires Eurobiobiz (release)
• Renal CarePartners acquires two dialysis providers (VentureWire, sub req’d)
• Pasteuria Bioscience names David Duncan new CEO (release)

Featured companies: Acceleron Pharma, AdvanDx, Altheus Therapeutics, BiPar Sciences, Coventina Healthcare Enterprises, ForteBio, Ganymed Pharmaceuticals, Mako Surgical, Nile Therapeutics, Novate Medical

[NOTE: This briefing was posted on Friday, 9/21/07; I've edited its timestamp to preserve chronological order among the briefings.]

Nile Therapeutics raises $20M, goes public in reverse merger — Berkeley, Calif.-based Nile Therapeutics, a developer of cardiovascular drugs, raised $20 million from new and existing investors and carried out a reverse merger that takes the company public. Investors in the financing included Wexford Capital, RIT Capital Partners, Life Science Capital Master Fund, and other institutional investors. It’s not clear if Nile had raised venture capital prior to this funding.

Nile is at work on a second generation “natriuretic peptide,” which is basically a protein fragment that mimics the function of natural diuretics found in the heart. Nile licensed that drug from the Mayo Clinic; it’s now in early-stage human testing. Nile intends to acquire additional experimental drugs to expand its portfolio.

AdvanDx pulls in $15M for pathogen diagnostics — AdvanDx, a Woburn, Mass., biotech that develops molecular diagnostic tests for identifying infectious pathogens in hospitals, raised $15 million in a third funding round. Investors included bioMérieux, LD Pensions and SLS Venture.

The company’s diagnostic tests can supposedly identify the microbes responsible for bloodstream infections in hours rather than days, as current culturing tests require. The time saved can make it possible to effectively treat patients much sooner. In that sense, AdvanDx’s technology is similar to that of OpGen, which we wrote about in the first item here.

Novate Medical draws in €4M for anti-clot device — Ireland’s Novate Medical, a device maker at work on filters that can be installed in veins to prevent blood clots from reaching the lungs and causing pulmonary embolisms, raised €4 million ($5.5 million). Investors included ACT Venture Capital, Seroba BioVentures and Enterprise Ireland.

The company doesn’t appear to have a Web site.

Antibody company Ganymed adds €3.5M to round — Germany’s Ganymed Pharmaceuticals, a developer of monoclonal-antibody drugs for cancer, added €3.5 million ($4.9 million) to its third funding round, bringing that total to €37.2 million ($52.1 million). The additional funding was provided by ATS Beteiligungsverwaltung of Munich.

Altheus Therapeutics gets $3.6 million against bowel disease — Oklahoma City’s Altheus Therapeutics, a biotech working on new treatments for inflammatory bowel disease, raised $3.6 million to fund clinical trials. St. Louis-based Prolog Ventures, the Oklahoma Seed Capital Fund and Oklahoma Equity Partners provided the funding.

Altheus is developing a treatment that combines two existing drugs, which the company hasn’t identified.

Coventina Healthcare Enterprises gets $150K, moves to Pennsylvania — The seemingly ubiquitous Pittsburgh Life Sciences Greenhouse has struck again, investing $150,000 in Coventina Healthcare Enterprises, which then relocated to southwestern Pennsylvania from Texas. Coventina recently acquired the assets of Texas-based Selicor, and now develops therapeutic heating systems that rely on radio-frequency energy.

Mako Surgical seeks an $86M IPO for knee-surgery robots — The Ft. Lauderdale, Fla., company filed to raise up to $86 million in an initial offering. Mako’s robotic-surgery device and knee implants are designed to perform minimally invasive knee operations.

Brownian motion: Personnel moves in the life sciences —

• Acceleron Pharma, of Cambridge, Mass., named John Knopf as CEO. The company develops biotech drugs for muscle and bone injuries.
• BiPar Sciences, of Brisbane, Calif., named former Genentech CEO G. Kirk Raab as its acting chief executive. Raab is also the company’s chairman. The company develops cancer drugs.
• ForteBio, of Menlo Park, Calif., named Joseph Keegan as its new CEO. The company builds instruments designed to speed the discovery of new therapeutics.