VentureBeat

TODAY’S HEADLINES:

• AGI Dermatics takes in $5M for skincare products (release)
• Myconostica raises £3.9 for fungal diagnostics (GenomeWeb)
  
• Germany’s Noxxon gets €1M grant for aptamer drugs (release)

AGI Dermatics takes in $5M for skincare products – Freeport, N.Y.-based AGI Dermatics, a startup concentrated on skincare products, raised $5 million in a new funding round. Investors included Trevi Health Ventures and Spring Mountain Capital.

AGI makes cosmetic ingredients and is working on developing topical pharmaceutical lotions as well. Its leading drug candidate is called T4N5 Liposome Lotion, which AGI says includes a DNA-repair enzyme intended to repair ultraviolet damage to the skin. The company is currently testing the product as a preventive treatment for skin cancer.

Germany’s Noxxon gets €1M grant for aptamer drugs — Noxxon, a German biotech aiming to make drugs from nucleic-acid snippets called aptamers, received a grant from Germany’s Federal Ministry of Education and Research. The €1 million ($1.6 million) grant is intended to support Noxxon’s drug-discovery program, which we covered at greater length last May.

Myconostica raises £3.9M for fungal diagostics – Myconostica, a U.K. biotech that spun out of the University of Manchester, raised £3.9 million ($7.7 million) in a third funding round, GenomeWeb reports. Investors included Amphion Innovations, Nexus Medical Partners, and Innoven Partenaires.

The company is working on rapid diagnostic tests for life-threatening fungal infections. Its first product is a test for several types of fungal infection that is nearing approval in Europe, and which Myconostica thinks could receive U.S. approval by the fourth quarter.

TODAY’S HEADLINES:

• Aptamer-drug maker Archemix withdraws its $72.5 million IPO (Edgar)
• OraMetrix raises $20M for robotic orthodontic systems (peHUB)
• Microarray maker TeleChem goes public via reverse merger (release)
• BioVascular pulls in $11M for platelet-disease treatments (release)
• Cequent Pharma adds $4.5M for for RNAi drugs (VentureWire)
• CareSeek, online medical-rating service, gets $575K, looks for $5M (VentureWire)
• Satiogen takes in $700K for obesity treatment (VentureWire)
• Dilon Tech appoints Robert Moussa as CEO (release)

Aptamer-drug maker Archemix withdraws its $72.5 million IPO – I’ve expanded this news into a standalone item on the state of the life-science IPO market here.

OraMetrix raises $20M for robotic orthodontic systems – Richardson, Tex.-based OraMetrix, a maker of 3-D robotic systems for orthodontic use, raised $20 million in a new funding round, peHUB reports. The financing is either a third round (as peHUB puts it) or a sixth (as VentureWire reports based on an interview with the company’s CFO). Existing investors, including Rho Capital Partners, Versant Ventures, Brentwood Venture Capital and Star Ventures, provided the cash.

Founded in 1998, OraMetrix makes and sells what it calls the SureSmile system for orthodontic braces. After taking a 3-D scan of a patient’s mouth, an orthodontist can then use the system’s computer modeling to develop a treatment plan. A robotic system then precisely bends the “archwires” that push teeth around.

OraMetrix claims the system shortens the duration of treatment and reduces office visits. The company has sold the system since 2004 and told VentureWire that it has installed SureSmile for more than 200 doctors, but says it needs to roughly double that figure to reach profitability.

Microarray maker TeleChem goes public via reverse merger – TeleChem International, a Sunnyvale, Calif., maker of gene-chip microarrays that is also known as ArrayIt, went public via a reverse merger with Integrated Media Holdings. The companies don’t quite call it a reverse merger, but given that IMH shares have traded at around two cents since September, the company has a shareholder’s deficit of $1.5 million and noted in its latest quarterly filing that there is “substantial doubt” about its ability to remain a going concern, the dots aren’t all that hard to connect.

Technically, IMH acquired TeleChem’s existing shares in exchange for 35 million shares of the merged company, which will undergo a one for 30 reverse split. At yesterday’s IMH close of, yes, two cents, that values the deal at about $21 million.

BioVascular pulls in $11M for platelet-disease treatments – San Diego’s BioVascular, a specialty pharma focused on drugs for fighting blood clots related to heart surgery, raised $10.9 million in a third funding round. Investors included BB Biotech Ventures, Merck KGaA and Domain Associates.

The funds will allow BioVascular to complete early-stage trials of two drugs, saratin for the prevention of clotting in grafted vessels following heart-bypass operations, and BVI-007, a platelet-production inhibitor it acquired last year when it bought out the biotech Revitus.

Cequent Pharma adds $4.5M for for RNAi drugs – Cequent Pharmaceuticals, a Cambridge, Mass., developer of drugs based on the gene-silencing technique called RNA interference, added $4.5 million to its first funding round, VentureWire reports. The new cash, provided by existing investors Novartis Option Fund, Ampersand Ventures, Nexus Medical Partners and Pappas Ventures, brings Cequent’s total funding in the round to $13.5 million.

RNAi involves the use of short stretches of RNA that engage ancient cellular mechanisms for silencing the output of particular disease-related genes. RNA, however, doesn’t enter cells easily, so Cequent is working on a way to use genetically engineered, non-disease-causing bacteria that will enter human cells and produce the desired RNA molecules locally. We covered Cequent’s previous funding here.

(UPDATED at 3:10pm PT: See below.)

Featured companies: Agendia, EndoGastric Solutions, FlowCo, Gentris, MedManage Systems, ParagonDx, Presidio Pharmaceuticals, Xoova

Presidio Pharma raises $26M for viral treatments — San Francisco’s Presidio Pharmaceuticals, a biotech developing new antiviral drugs, raised $26 million in a second funding round. Investors included Panorama Capital, Baker Brothers Investments, Bay City Capital, Ventures West Capital, Nexus Medical Partners, Sagamore Bioventures, George Rathmann Fund and Peninsula Overview Partners.

Presidio’s lead drug candidates take aim at HIV, hepatitis C and other viral infections. None of its drugs have entered human tests yet.

EndoGastric Solutions pulls in $30M for “transoral” surgeries — Redmond, Wash.-based EndoGastric Solutions, a medical-device maker developing products for incision-free gastrointestinal surgery, raised $30 million in a fourth funding round. Investors included DeNovo Ventures, Chicago Growth Partners, MPM Capital, Advanced Technology Ventures, Foundation Medical Partners, and Oakwood Medical Investors.

In March, EndoGastric received FDA clearance for a device it calls the StomaphyX, a disposable surgical instrument that can be passed into the stomach or the intestines via a patient’s mouth. Although EndoGastric isn’t too clear on exactly what the StomaphyX is for — the company says it’s for use in “endoluminal transoral tissue approximation and ligation” — the device appears to be a sort of staple gun that can fasten together parts of the stomach or intestines. EndoGastric says the device can be used to treat gastroesophageal reflux disease, and its Web site appears to suggest that it can also perform bariatric surgery from inside the stomach as a treatment for obesity.

Agendia gets $34M for gene-based diagnostics — Amsterdam-based Agendia, a developer of gene-based diagnostic tests for cancer, raised $34 million (€25 million) in a fourth funding round. Investors included ING, Van Herk Biotech, Gilde Healthcare Partners and Global Life Science Ventures.

Agendia, founded in 2003, sells diagnostic tests that assess the “activity level” of various genes in tumor tissue, a technique that allows it to predict whether, for instance, a woman has a high or a low risk of seeing her breast cancer return. That test, sold under the brand name MammaPrint, was approved in the U.S. in February. Agendia has developed similar tests for identifying unknown cancers and for assessing the prognosis of colon cancer.

MedManage Systems, a drug-sampling service provider, receives $5M — MedManage Systems, a Bothell, Wash., company that helps drug manufacturers push free samples into the hands of doctors in order to “build brands,” raised $5 million of a planned $10 million financing, PE Hub reports, citing a regulatory filing. Investors include Lilly Ventures, Prism VentureWorks, QuestMark Partners and Versant Ventures.

At heart, MedManage’s business seems to be a consulting service that uses a mix of technology, data analysis and old-fashioned legwork make it easy for physicians to hand out free drug samples, which the MedManage site calls “a proven marketing strategy” for “influenc[ing] physician prescribing behavior.”

The company’s Web site is larded up with all manner of marketing buzzwords, but it’s actually fascinating to read through. That’s because most folks in the pharmaceutical industry would never admit that drug samples are part of a sophisticated marketing program aimed at getting doctors used to particular brands and patients to request them by name. (Large drug companies would prefer you to believe that they give away free drugs out of the kindness of their heart and sympathy for the people who can’t afford their products.) MedManage, however, makes no bones about using samples to push particular drugs. So for a peek behind the curtain, check out MedManage’s description of what it calls its “OmniSample Solution” — it’s very illuminating.

Xoova raises $2.5M for medical social-networking — Santa Monica, Calif.-based Xoova, a social network for doctors and patients, has raised $2.5 million in a first funding round last year, VentureWire reports (subscription required). Spark Capital Partners provided the funding.

Xoova allows physicians to post profiles of themselves online, much the way Facebook and similar services do for the general population. Xoova CEO Tommy McGloin estimates that 20,000 doctors have already done so, a number he hopes will grow to 100,000 by the time he begins raising an expected $5 million round next year.

Consumers can search the doctor profiles and, in some cases, can make appointments online if the doctor has signed up for a free Xoova service. McGloin said the company intends to roll out new features in coming months, although the one cited by VentureWire — allowing patients to both book and cancel appointments online — sounds awfully mundane.

Cardiac-device maker FlowCo raises $250K — FlowCo, an Indianapolis medical-device developer, raised $250,000 in a seed financing. BioCrossroads provided the funding. FlowCo, which doesn’t have a Web site, is working on a new catheter for deploying arterial stents, the wire-mesh devices that prop open clogged arteries, more accurately.

ParagonDx acquires Gentris unit for early diagnostics — ParagonDx, apparently a newly formed Morrisville, N.C., biotech firm focused on molecular diagnostics, said it acquired the Gentris Diagnostics unit of Gentris, a pharmacogenomics firm also based in Morrisville. Financial terms of the deal weren’t disclosed.

It’s not immediately clear exactly what this transaction means — I’m assuming ParagonDx was essentially spun out of Gentris, but the release isn’t terribly clear on that point. There are also some other oddities, such as the fact that as of this moment, the ParagonDx URL redirects to the Gentris site. It’s entirely possible that they’re just working out merger-day glitches, but it’s also possible something else weird is going on.

UPDATE (3:10pm PT): Added items on MedManage Systems, Xoova, FlowCo and ParagonDx/Gentris.

(CORRECTED: See below.)

Featured companies: VistaGen Therapeutics, MindWeavers, Cutanea Life Sciences, Heptares Therapeutics

VistaGen raises $3.75M for stem-cell based drug discovery — South San Francisco, Calif.-based VistaGen Therapeutics, a biotech that uses human embryonic stem cells to discover new drugs, raised $3.75 million in a bridge financing as it prepares to raise up to $20 million in a fourth round, VentureWire reports (subscription required). Montaur Capital Partners provided the funding.

VistaGen, founded in 1998, isn’t your typical stem-cell company. Where companies ranging from Geron and Advanced Cell Technology to Novocell aim to use the controversial cells — which must be derived from five-day-old embryos in a destructive process — directly as therapies to help regenerate damaged organs, VistaGen merely grows stem-cell cultures in its labs and uses those cultures to discover and run preliminary safety tests on drug candidates.

The embryonic cells are capable of “differentiating” into any type of cell in the body, which VistaGen says makes them valuable for determining how an experimental drug molecule will interact with living human tissue. The company uses its stem-cell “screens” to identify promising small-molecule drugs (that is, compounds that can be swallowed rather than injected) and to determine what side effects they might cause once ingested. Over time, VistaGen suggests, it might develop screens for drugs that trigger stem cells’ regenerative powers, potentially inducing cellular repair in conditions such as heart disease or diabetes.

For now, however, VistaGen’s lead drug candidate is a relatively prosaic compound called AV-101 that the company plans to begin testing against epilepsy later this year. AV-101 is a “prodrug” — a molecule that’s converted into an active form by the body’s natural metabolism — that turns into a neuroinhibitor once it reaches the brain. In addition to epilepsy, VistaGen suggests that the drug may also have uses in stroke, neuropathic pain and neurodegenerative diseases such as Alzheimer’s disease. For more detailed info, see the company’s Web site here and here.

Oxford’s MindWeavers raises $1.1M for mind-altering software — MindWeavers, an Oxford, England-based software company that develops software designed to improve mental function, raised $1.1 million (£558,000) through City and Merchant Group. Next year, the company hopes to raise up to £1 million with a listing on London’s Plus Markets electronic exchange.

MindWeavers develops its programs based on neuroscience research from Oxford University, which spun out the company in 2000. Its first product was Phonomena, a interactive game for children that the company says builds auditory discrimination and language skills. Several other programs are designed to improve “neuroplasticity” and to stimulate brain activity in middle-aged and elderly people in order to ward off age-related cognitive decline. VentureWire has more.

Skin-care firm Cutanea raises “millions” in convertible debt — Cutanea Life Sciences, a Cambridge, Mass., specialty pharmaceutical company focused on dermatology, raised a “multi-million” dollar round of convertible debt, VentureWire reports. Institutional investors such as Nexus Medical Partners provided the funding. Cutanea licenses neglected or cast-off experimental drugs from universities or other companies and runs them through human tests.

Heptares Therapeutics spins out of Britain’s MRC — The MRC Laboratory of Molecular Biology has spun out a new company, Heptares Therapeutics, with undisclosed seed funding from MVM Life Sciences Partners. The company will focus on drugs for diseases of the nervous system and metabolism. (Hat tip: PE Hub.)

CORRECTION: Due to incorrect information supplied by VentureWire, the VistaGen Therapeutics item originally stated that Montreux Equity Partners provided funding. In fact, Montaur Capital Partners led the funding. The VentureWire correction is here.

Cequent Pharmaceuticals, a Cambridge, Mass., developer of drugs based on a new gene-silencing technology, raised $9 million in a first-round funding. The round was led by the Novartis Option Fund, joined by Ampersand Ventures, Nexus Medical Partners, and Pappas Ventures.

Cequent is developing new treatments based on RNA interference, a Nobel Prize-winning technology that “silences” gene outputs using short stretches of RNA. Its first candidates, none of which have been tested in humans, are aimed at colon-cancer prevention and inflammatory bowel disease.