VentureBeat

Representing a potential medical quantum leap similar to, but even more important than the commercialization of X-ray imaging, Pacific BioSciences has taken a whopping $100 million to make it possible to affordably map out an individual’s entire genome in a matter of minutes, and for under $1,000 dollars.

While several startups, including 23andMe and deCODEme, are already offering cheap genetic testing for individuals, the technology Pacific Bio is looking at is about as different from those as looking at a satellite image of a town is to walking through it. The company is working on a system to “read” each DNA letter in a person’s genetic makeup, providing an in-depth view of every factor affecting a given person’s health.

The idea sounds fairly simple: Individial DNA molecules are captured in tiny holes on a chip, where they are pulled apart and rebuilt with enzymes identical to those present in the body, but with the addition of chemical markers. A type of digital camera takes a picture of the process, identifying the specific fragment being looked at. We covered the technology in more depth when it was first revealed, and have mentioned various competitors, most notably Complete Genomics and BioNanomatrix, who want to do sequencing for under $100.

In practice, of course, operating at such tiny scales is difficult, and accurately sequencing thousands of genes at once seems nearly impossible. But the company says it will be ready to commercialize by 2010, a Herculean feat if it can pull it off. The new funding indicates that it is at least gaining the confidence of venture capitalists.

If and when that happens, it will be time for early investors including Alloy Ventures, Kleiner Perkins Caufield & Byers, and Mohr Davidow Ventures — who collectively plowed more than $70 million into Pacific Bio over four previous rounds — to rake in the money.

However, it will just be the beginning for a whole new field of medical technology centered around finding uses for all the new information in individuals that becomes available. Preventative medicine is the obvious use, but others, like data mining for new cures and information on diseases, are also possible. Laws regulating the use (and misuse) of such information by insurers, employers and others will also have to be formulated.

A passel of new investors joined the funding, starting with co-leads Deerfield Management and Intel Capital. Also in were Morgan Stanley, Redmile Group, T. Rowe Price, and an unnamed “large financial institution.” Other previous investors Maverick Capital, AllianceBernstein, DAG Ventures and Teachers’ Private Capital also participated.

Featured companies: AgraQuest, BridgeHealth, CardioMems, Collegium Pharmaceutical, Emergin, Entegrion, gDiapers, Precision Therapeutics, PregLem

UPDATED: Expanded items on Entegrion, Collegium, and gDiapers. Added CardioMems item. New items posted on AgraQuest (link), BridgeHealth (link) and Precision Therapeutics (link).

Entegrion draws $4.7M for bleeding control — Entegrion, a Research Triangle Park, N.C., biotech focused on products that stop bleeding, raised $4.7 million in a second funding round, VentureWire reports (subscription req’d). Investors included BD Ventures, Catalysta Partners and unnamed individuals.

Entegrion’s main product is Stasix, a formulation derived from human platelet cells that promote blood clotting. Those cells are processed and freeze-dried into a powder, which can be applied directly to wounds or reconstituted and infused throughout the body. The U.S. military has picked up the tab for much of the product’s development, courtesy of congressional earmarks arranged by the North Carolina delegation.

Specialty drug maker Collegium Pharma nets $2.5M — Collegium Pharmaceutical, a Cumberland, R.I., specialty pharma developing drugs for neurological, respiratory and skin disorders, raised $2.5 million from insiders, VentureWire reports. Westfield Life Sciences Fund and Boston Millennia Partners provided the funding.

Like most specialty pharmas, Collegium licenses cast-off or failed drugs from other companies and pushes them through clinical testing. The company, which already markets drugs for acne and wound healing, said it may seek a fourth funding round depending on its 2008 sales. Collegium hopes to request marketing approval for a new allergy early next year.

CardioMems closes $33M funding for wireless heart sensors — Atlanta’s CardioMems, a device maker focused on wireless heart sensors, raised $33 million in a fifth funding round. Investors included Arcapita Ventures, Boston Millennia Partners, Medtronic, Easton Capital Partners, Foundation Medical Partners, Arboretum Ventures, Deerfield Capital Management, Vision Capital Advisors, Aperture Venture Partners and Rockport Venture Securities.

CardioMems’ first product is a sensor that can detects the pressure within an aneurysm, a weakened section of an arterial wall that is susceptible to rupture. We previously covered the company here.

Eco-friendly gDiapers pulls in new funding — Portland, Ore.-based gDiapers, a maker of biodegradable, flushable baby diapers, raised a second funding round. The company didn’t disclose how much it raised. 2x Consumer Products Growth Partners provided the funding. (For the amusing tale of a columnist who tried these diapers — complete with a mildly panicked online comment apparently from the gDiapers CEO — see this NJ Star-Ledger piece.)

HEADLINES OF NOTE:

• AgraQuest raises $20M for biotech pesticides (release)
• Precision Thera drops IPO, goes public via reverse merger (release)
• Women’s health co. PreLem raises CHF 36M (release)
• Entegrion draws $4.7M for bleeding control (VentureWire, sub req’d)
• Specialty drug maker Collegium Pharma nets $2.5M (VW)
• Medical tourism firm BridgeHealth raises $1M+ (release)
• Eco-friendly diaper co. gDiapers raises funding (VW)
• Wireless hospital-alarm co. Emergin acquired by Philips Electronics (release)