Healthcare Key Deals – VC, PE, IPO, Exits, M&A – Week 37, 2015

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VC Deals

Selecta Biosciences Inc., a Watertown, Mass.-based developer of targeted antigen-specific immune therapies, has raised $38 million in Series E funding. Existing shareholder OrbiMed Advisors led the round, and was joined by new investors Sanofi-Genzyme BioVentures, Ridgeback Capital Management, Osage University Partners, AJU IB Investment and Sphera Global Health Care Fund. In addition to OrbiMed, other returning backers include Polaris Venture Partners, Flagship Ventures, NanoDimension, Rusnano, I2BF, Eminent Venture Capital and Leukon Investments

Laboratoris Sanifit, a Spanish developer of a drug for the treatment of cardiovascular diseases linked to calcification in patients with end-stage renal disease, raised €36.6 million in Series C funding. Ysios Capital led the round, and was joined by Forbion Capital Partners, Lundbeckfond Ventures, Gilde Healthcare, Edmond de Rothschild Investment Partners, “la Caixa” and Baxter Healthcare

SetPoint Medical, a Valencia, Calif.-based, has raised $15 million in new Series C funding. The round total is now $43 million. Existing backers include Covidien Ventures, Action Potential Venture Capital, Boston Scientific, Morgenthaler and Foundation Medical Partners

AveXis Inc., a Dallas-based developer of gene therapies for patients with severe genetic and orphan diseases like spinal muscular atrophy, has raised $65 million in Series D funding. T. Rowe Price Associates led the round, and was joined by Janus Capital Management LLC, Adage Capital Management, L.P., RA Capital Management, QVT Financial, Rock Springs Capital Management, Foresite Capital Management, RTW Investments, Boxer Capital and return backers Deerfield Management, Roche Venture Fund and Venrock

Proteostasis Therapeutics Inc., a Cambridge, Mass.-based developer of therapeutics to treat diseases caused by defects in protein processing, has raised $37 million in Series B funding. Cormorant Asset Management led the round, and was joined by Rock Springs Capital Management and return backers New Enterprise Associates, Elan Science One, HealthCare Ventures, Fidelity Biosciences, Novartis Bioventures, Novartis Venture Fund and Sanofi-Genzyme BioVentures. Leerink Partners served as placement agent

Delphinus Medical Technologies Inc., a Plymouth Township, Mich.-based developer of breast ultrasound technology, has raised $39.5 million in Series C funding.Venture Investors led the round, and was joined by Hopen Life Science Ventures, Waycross Ventures and return backers Arboretum Ventures, Beringea, and North Coast Technology Investors

Novadip Biosciences, a Belgium-based developer of “3-dimensional tissues” derived from adipose stem cells to regenerate bone and soft tissues, has raised €28 million in Series A funding. New Science Ventures led the round, and was joined by VIVES Louvain Technology Fund, NivelInvest (Start-Up), Fund+, Integrale, SRIW, SFPI-FPIM, Epimède and individual angels. Novadip Biosciences is a spinout from Université catholique de Louvain

Cognition Therapeutics, an eight-year-old, Pittsburgh, Pa.-based pharmaceutical company focused disease-modifying therapies for Alzheimer’s and related neurodegenerative diseases, has raised $12 million in Series B funding led by the investment syndicate Golden Seeds, with participation fromBios Memory SPV1, Cowtown Angels, Scale Investors, Dolby Family Ventures, Maine Angels, among others. Earlier backers, includingTech Coast Angels, also participated in the financing

PE Deals

Envision Pharma Group, a Philadelphia-based scientific communications company, has acquired Alligent Biopharm Consulting LLC, a Stirling, N.J.-based developer of medical communications solutions to the biopharma industry. No financial terms were disclosed, except that the deal was supported via an investment in Envision Pharma by the Halifax Group

Epic Health Services Inc., a Dallas-based provider of pediatric nursing and therapy, has acquired Option 1 Healthcare Solutions, a Chandler, Ariz.-based provider of enteral therapy services. No financial terms were disclosed. Epic Health is a portfolio company of Webster Capital. Sellers include Thompson Street Capital Partners

IPO Deals

Cerecor Inc., a Baltimore-based developer of drugs to treat neurological and psychiatric disorders, has set its IPO terms to 4.23 million shares being offered at between $6 and $7 per share. It would have an initial market cap of around $57.6 million, were it to price in the middle of its range. Cerecor plans to trade on the Nasdaq under ticker symbol CERC, with The Maxim Group serving as underwriter. Shareholders in the pre-IPO company include New Enterprise Associates (12.9% pre-IPO stake), Apple Tree Partners (12.9%) and MPM Capital (12.9%)

Penumbra Inc., an Alameda, Calif.-based maker of medical devices for those who have experienced strokes and other neurovascular diseases, has set its IPO terms to 3.8 million shares being offered at between $25 and $28 per share. It would have an initial market cap of around $791 million, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol PEN, with J.P. Morgan and BofA Merrill Lynch serving as co-lead underwriters. Penumbra reports a $169,000 net loss on $81 million in revenue for the first six months of 2015, compared to $1.6 million in net income on $58 million in revenue for the year-earlier period. Fidelity holds an 11.6% pre-IPO stake

Regenexbio Inc., a Rockville, Md.-based gene therapy company, has set its IPO terms to 5.56 million shares being offered at between $17 and $19 per share. It would have an initial market cap of around $443 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol RGNX, with Morgan Stanley, BofA Merrill Lynch and Piper Jaffray serving as co-lead underwriters. Regenexbio has raised over $100 million in VC funding, including a $70.5 million in Series D round earlier this year. Shareholders include Venrock (9.5% pre-IPO stake), Brookside Capital (9.2%), Deerfield Management (6.1%), Fidelity (5.7%), GlaxoSmithKline (5.7%), Vivo Capital, Janus Capital Management, Jennison Associates, Perceptive Advisors, QVT Financial, Tourbillon Global Ventures, Sectoral Asset Management, Cormorant Asset Management, Foresite Capital Management and RTW Investments

AnaptusBio, a San Diego-based developer of antibody product candidates focused on unmet medical needs in inflammation and immuno-oncology, has filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker symbol ANAB, with Stifel and BMO Capital Markets serving as lead underwriters. The company reports a $431,000 net loss on nearly $9 million in collaboration revenue for the first half of 2015. Shareholders include Frazier Healthcare (23.2% pre-IPO stake), Novo AS (21.3%), Avalon Ventures (15.2%), Alloy Ventures (9.1%) and HBM Healthcare Ventures (6.7%)

Other Deals

Cinven has agreed to sell UK-based pharma companyAmdipharm Mercury Ltd. to Canada-based Concordia Healthcare Corp. (Nasdaq: CXRX) for approximately US$3.5 billion in cash and stock (including possible earn-outs)

Hikma Pharmaceuticals PLC (LSE: HIK) has agreed to acquire a 98.09% stake in EIMC United Pharmaceuticals, an Egypt-based pharma manufacturing company focused on oncology products. No financial terms were disclosed

Sources: Term Sheet, Financial Times, StrictlyVC, TechinAsia, CrunchBase, TechCrunch, Bloomberg

The Propell Group

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