Welcome to Venture Valuations VC Deal Summary A study by Signals suggests that the Global Biotech Industry has recovered

from the financial crisis. Not only have biotech firms raised over USD 10bn more than the previous year for the second year in a row; the USD 32.7bn raised in 2010 surpasses the previous record of USD 31.4bn raised in 2000.1 In July of this year, Valeant was busy buying up dermatology companies, the Fred Hutchinson Cancer Research Center received funding for some interesting HIV research, and Advanced Accelerator Applications SA, a French Medtech, led with EUR 40m in new financing.

2011: July 2011 : Financial highlights of the life sciences industry

Financing rounds
Roka Bioscience Raises USD 20m Roka Bioscience (Warren, NJ. USA) Is set to receive USD 20m in series C equity financing. The new breath of capital brings the industrial assay companys total financing up to USD 57.2m since 2009. All existing investors had a hand in financing including OrbiMed Advisors, New Enterprise Associates, Inc., TPG Biotech and Gen-Probe Incorporated. The money will be used to commercialize Rokas newest first molecular assay for food safety testing. (Source: Company Website) AAA rating for Advanced Accelerator Applications latest financing round Advanced Accelerator Applications (Saint Genis Pouilly, France) announced the completion of a financing round worth a reported EUR 40m. The diagnostic and therapeutic applications producer says the round will be used to fund expansion plans and finance clinical trials for its promising portfolio of Radio Metabolic Therapy and diagnostic products. Both existing and new shareholders contributed capital, including Domp who will now own a reported 7.7% stake in the firm. (Source: Company Website)

Biotech Sector Breaks Its Own Record, Signals: The Online Magazine of Biotechnology Industry Analysis

No Pain for Nevro with USD 58m Nevro Corp. (Menlo Park, CA. USA), developers of new spinal cord stimulation therapy to combat chronic back pain, announced a new financing round. Existing investors Aberdare Ventures, Accuitive Medical Ventures, Bay City Capital, Mayo Clinic, MPM Capital and Three Arch Partners where eclipsed by Johnson & Johnson Development Corporation who led the way in the USD 58m round. (Source: Company Website) QRxPharma QRxPharma Announces AUD 35m Raised QRxPharma Limited (Sydney, Australia) made a splash this month with the announcement of a USD 35m financing round. Money from the round will be for commercialization of MoxDuo, QRxPharma's lead product for pain management, expected to hit markets in 2012. While investors were not named, it was announced that USD 25m was via an oversubscribed placement leading to the firm issuing an additional USD 10m rights issue. (Source: FierceBiotech) CEVEC Raises EUR 6m to Boost Vaccine Business Business CEVEC (Cologne, Germany) has raised EUR 6m in a new financing round led by NRW.BANK and Creathor Venture Funds in addition to contributions from current investors. Financing will contribute to the growth of CEVECs CAP technology platform for vaccines. (Source: Company Website) Muscles Up Stanmore Implants Muscle s Up GBP 4m for Orthopaedic Inplants Stanmore Implants (Elstree, UK), creators of implants for complex orthopaedic reconstructions, will walk away from an equity financing round GBP 4m richer. Imperial Innovations Group plc. provided the funds, which will be used to launch the Juvenile Tumour System (JTS), a noninvasive extendible distal femoral replacement in the US. (Source: Company Website) gIcare Closes USD 7m in Series A Financing gIcare Pharma Inc. (Montral,QUE. Canada) is set to receive USD 7m after a successful A series financing round. gIcare Pharma, developers of a procedure for painless colonoscopies without any kind of sedation, will use the money for further development. The investment round was led by Forbion Capital Partners and Genesys Capital. (Source: Company Website) Biodesix Announces USD 20m for VeriStrat Biodesix Inc. (Broomfeild, CO. USA) has announced a USD 20m Series D financing round. The capital injection will be used for commercialization activities of VeriStrat, Biodesixs blood-based test for patients with non-small cell lung cancer. Previous investors, a small group of industry insiders, led the financing round. (Source: Company Website)

Transcend Eyes Further Development with USD 51m in Financing Transcend Medical, Inc. (Menlo Park, CA. USA) this month closed a series B financing round worth USD 51m. The round was led by Canaan Partners, Finistere Ventures ,and HLM Venture partners with several other contributors. Transcend will use the cash infusion to develop its US. Pivotal study for Cypass Mirco-Stent, a tiny implantable stent for the eye. (Source: Company: Website) WideSARcode Wide- eyed After USD 44m Financing SARcode Bioscience, Inc., (Brisbane, CA: USA) has declared the closing of a USD 44m series B financing round. Leading the round was Sofinnova Ventures with existing investors Rho Ventures, Alta Partners, and Clarus Venture Partners contributing. SARcodes lead product, for the treatment of dry eyes, will now benefit from additional clinical development. (Source: Company Website) DVS with USD 14.6m A Round DVS Sciences (Toronto, Canada), a spin-off from the University of Toronto, has raised USD 14.6m in a series A financing round. Investors include 5AM Ventures, Pfizer Venture Investments, Mohr Davidow Ventures, and the Roche Venture Fund. The venture financing round will be used to accelerate the companys commercial manufacturing by scaling-up its paradigm-shifting multiparameter single cell analysis solution. (Source: Company Website) Gains New Firm Verastem Gains New Funding with USD 32m Verastem (Cambridge, MA. USA) has closed a USD 32m financing round that it plans to use for further development of its drug targeting cancer stem cells. Investors include Advanced Technology Ventures, Astellas Venture Management, Longwood Founders Fund, Bessemer Venture Partners, Cardinal Partners, and MPM Capital. (Source: Fierce Biotech) PharmaGap Completes Initial Close of Private Placement PharmaGap Inc. (Ottawa, ONT. Canada) announced that it has closed a private equity offering of as many as 5555556 units. Each unit includes one share (closing at USD 0.09 per unit) and a warrant for purchase in the next two years of one common share at a price of USD 0.14. PharmaGap is a Ottawa based Biotech company whose main focus is developing novel peptide therapeutics for the treatment of cancer. (Source: Company Website) Tarsa USD 24.5m Round Tarsa Therapeutics (Philadelphia, PA. USA) has closed a USD 24.5m financing round with the help of all existing investors namely, MVM Life Science Partners, Quaker BioVentures, Novo A/S and Unigene Laboratories. Proceeds from the round will be used to advance development of the lead compound oral calcitonin, for the prevention of postmenopausal osteoporosis. (Source: Company Website)

Fred Hutchinson Center Gets Grant for HIV Research The Fred Hutchinson Cancer Research Center (Seattle, WA. USA), with the help of a USD 20m five year grant from the National Institutes of Health, will try to replicate a 2008 German study. The study occurring in Berlin in 2008 lead to the curing of a man from HIV after HIV immune stem cells were given to the patient to treat HIV-related leukemia. (Source: FierceBiotech) SurgiQuest Closes USD 19m in N ew Funds SurgiQuest Inc. (Orange, CT. USA), a medical device company that has developed a device to make an airtight seal while performing abdominal cavity surgeries, has closed a USD19m financing round this month. Included in the round are new investors Fletcher Spaght Ventures, CMEA Ventures, California Technology Ventures LLC, Aphelion Medical Fund as well as existing investors. (Source: FierceBiotech) SpringLeaf with a Second Closing of B Series Just two months after the closing of its series B financing, SpringLeaf Therapeutics (Boston, MA. USA) will welcome Excel Venture to the investors table with a USD 4m second closing of the biotechs B financing round. The new funds bring the total B round up to USD 19m (Source: Company Website) Zafgen Gets Fat Off New Financing Round Zafgen Inc. (Cambridge, MA. USA) this month reported the closing of a USD 33m series C financing round. Leading the financing round were existing investors Atlas Venture and Third Rock Ventures. The money will be used to advance Zafgens pipeline as well as their lead product methionine aminopeptidase 2 (MetAP2), an inhibitor for the treatment of severe obesity which is currently in Ph II trials. (Source: Company Website) CHF MyoPower Gets CHF 16m MyoPower Medical Technologies (Lausanna, Switzerland) announced a CHF 16m financing round. The Swiss firm, which develops artificial muscle technologies to treat sphincter dysfunction and incontinences, will use the funding to bring the treatments to market in Europe. Existing investors Novartis Venture Fund, Gran Plasa SA and Initiative Capital Romandie will welcome round leaders Truffle Capital as well as BlueOcean Ventures and two private investors. (Source: Company Website) 11.6m Regado Raises USD 11.6m Regado Biosciences (Basking Ridge, NJ. USA) has raised USD 11.6m. A company spokesperson confirmed the USD 11.6m figure listed in Regado's latest filing with the Securities and Exchange Commission but said the company had no additional comments. The lead drug of Regado, REG1, is an anticoagulant. (Source: FierceBiotech)

Recei Acura Hits Milestone and Recei ves USD 20m Payment Acura Pharmaceuticals, (Palatine, Il. USA) had a good month in July, first receiving FDA approval for its drug Oxecta, designed to be an oxycodone that cannot be abused, followed by a USD 20m payment by Pfizer for reaching the milestone. (Source: Company Website)

Mergers & acquisitions

Valeant Becomes Dermatology Powerhouse After Two Transactions Valeant Pharmaceuticals (Mississauga, ONT. Canada) had a very busy month in July. First, on the 11th, Valeant announced that they had reached an agreement to acquire Dermik, the dermatology unit of Sanofi, for a reported USD 425m. The deal includes all of Dermiks assets including well known brands such as Benzaclin for acne, Carac keratoses, and Sculptra for the correction of facial wrinkles and folds. Only 4 days later Valeant was at it again, this time announcing the acquisition of all assets of the Ortho Dermatologics division of Janssen Pharmaceuticals for USD 345m. The assets include RETIN-A MICRO, ERTACZO, and RENOVA. Total revenue in 2010 for the portfolio was approximately USD150m. Both deals are expected to be accretive in 2011. (Source: Company Website) Synageva Trimeris Merges with Syn ageva in S tock D eal Trimeris (Durham, NC. USA) has struck an all stock merger deal with Synageva (Lexington, MA. USA). The agreement has Synagevas management gaining control of merger operations, including Fuzeon a marketed HIV drug from Trimeris. With other companies struggling to secure appropriate funding in IPOs, this is a good strategy for the biotech to go public. (Source: FierceBioTech) BristolCaptures Bristol-Myers Squibb Captures Amira Pharmaceuticals BMS has signed a definitive agreement to acquire Amira Pharmaceuticals Inc., a company specializing in small molecules. The all cash transaction is worth USD 325m upfront with the chance of additional milestone payments worth USD 150m. The acquisition will allow BMS to move into Fibrotics Diseases, an area with high levels of unmet need. (Source: Company Website) Luminex to Acquire EraGen Luminex,(Austin, TX. USA) is set to acquire EraGen Biosciences for USD 34m giving Luminex a larger portfolio of molecular diagnostic assays for pharmaceutical drug discovery, clinical diagnostics and biomedical research. (Source: FierceBioTech) Roche to Acquire mtm Labs Roche Holding announced this month that it will acquire mtm laboratories for an upfront payment of EUR 130m. The move is intended to increase the expertise of Roche in cancer detection and diagnosis, especially cervical cancer. mtm laboratories develops in vitro diagnostics, with a focus on early detection and diagnosis of cervical cancer. (Source: Company Website)

Kinetic Concepts A cquired by Apax Partners

A consortium, including Apax Partners, The Canadian Pension Plan Investment Board and the Public Sector Pension Investment Board, is set to acquire Kinetic Concepts (San Antonio, TX. USA). The three will pay USD 68.50 per share for a total value of USD 6.3bn. (Source: Company Website) AMAG Pharmaceuticals and Allos Therapeutics Merger Expect Synergies With between USD 55m and 60m in cost saving synergies expected each year, AMAG Pharmaceutical and Allos Therapeutics have entered into a merger agreement with a total equity value of USD 686m. AMAG stockholders will own approximately 61% of the new entity. The main products will be FERAHEME AMAGs drug for treatment of iron deficiency anemia and FOLOTYN Allos drug indicated for use in patients with relapsed or refractory peripheral T-cell lymphoma. (Source: Company Website)

Deals
32m Acorda Offers USD 32m to Medtronic Acorda Therapeutics, (Hawthorne, NY. USA) has reached an agreement with Medtronic to license its proprietary magnesium formulation called AC105 for USD 3m. Acorda made a USD 3m upfront payment to Medtronic but the deal for a drug with indications in spinal cord and traumatic brain injuries could be worth up to USD 32m if all regulatory milestones are reached. (Source: Company Website) BioSante Inks Deal with Little Up Front BioSante Pharmaceuticals is set to pay just USD 100000 upfront for worldwide rights to a preclinical melanoma vaccine created by the John P. Hussman Foundation. The real money, however, is in the milestone payments worth a reported USD 39m. (Source: FierceBiotech) 1bn Amgen Widens Cancer Reach with Close to USD 1bn Deal Amgen, (Thousand Oaks, CA. USA) will pay Micromet USD 14.1m upfront for the rights to further develop one of Micromets cancer drugs against two separate targets. Amgen will also pay up to USD 977.1m in potential sales royalties. (Source: FierceBiotech) USD 35m Deal Between Innate Pharma and BMS Innate Pharma (Marseille, France) and Bristol-Myers Squibb have signed a deal in which Innate Pharma will grant to Bristol-Myers Squibb exclusive worldwide rights to develop, manufacture and commercialize IPH2102, a drug cancer treatment in Phase I clinical trials. BMS will fund the development and made an upfront payment of USD 35m with additional payments potentially reaching USD 430m. (Source: Company Website) Hercules S aves AcelRx After falling short in their IPO, AcelRx Pharmaceuticals (Redwood City, CA. USA) has received a USD 20m loan from Hercules Technology Growth Capital. AcelRx is set to receive USD 10m upfront. The loan will help AcelRx to comple Phase III clinical Trials for ARX-01 designed for post operative pain. (Source: Company Website)

Financing Rounds Summary JULY 2011 from Biotechgate

Company
OPX Biotechnologies, Inc. Antisense Pharma GmbH Celsion Corporation Therapeutics Civitas Therapeutics Coronado Biosciences IMPAX Laboratories, Inc. Merrimack Pharmaceuticals, Inc. NeurOp, Inc. Regado Biosciences SARcode Bioscience, Inc. Verastem, Inc. Xlumena Zafgen Inc. SpringLeaf Therapeutics Fred Hutchinson Cancer Research Center Tarsa Therapeutics QRxPharma, Inc. gIcare Pharma Inc. Cevec Pharmaceuticals GmbH Lophius Biosciences Roka Bioscience Biodesix, Inc. Stanmore Implants Transcend Medical, Inc. Atlas Genetics Ltd. Accelerator Advanced Accelerator Applications SA Nevro Corp. DVS Sciences, Inc.

Sector
Biotechnology - other Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology - Therapeutics and Diagnostics Biotechnology / R&D Services Biotechnology / R&D Services Biotechnology / R&D Services Biotechnology / R&D Services Medical Technology Medical Technology Medical Technology Medical Technology Medical Technology Supplier & Engineering

Stage
Equity - Later stage Other Post-IPO Other Equity - Later stage Research grants IPO Research grants Equity - Later stage Equity - First stage Equity - Start-up Equity - First stage Equity - Later stage Equity - First stage Research grants Equity - First stage Post-IPO Equity - Start-up Equity - Later stage Equity - Later stage Equity - Second stage Equity - Later stage Equity - Later stage Equity - Second stage Equity - First stage Equity - Later stage Equity - First stage Equity - Start-up

Type of Round
Series C other n/a n/a Series C Series A other n/a Series E Series B Series B Series B Series C Series B n/a Series B Series B Series A n/a Series C Series C Series D n/a Series B Series B n/a Series A Series A

Investment in USD m
36.5 11.5 6.6 5 37.1 0.4 172.5 3 11.6 44 32 7 33 4 20 24.5 38.5 7.3 6 2.0 20 20 6.6 51 27.8 57.6 58 14.6

Country
USA Germany USA USA Israel USA USA USA USA USA USA USA USA USA USA USA Australia Canada Germany Germany USA USA UK USA UK France USA Canada

Therapeutic BIoTech Financing Last 12 Months2

Financing Worldwide
in USD millions Biotechnology - Therapeutics Aug 2010 305.6 Sep 2010 413.4 Oct 2010 250.1 Nov 2010 180.8 Dec 2010 219.4 Jan 2011 486.0 Feb 2011 430.5 Mar 2011 173.1 Apr 2011 295.3 May 2011 222.4 June 2011 401.9 July 2011 494.5 12 month Total 3873.0 3873.0

Financing IN the us
in USD millions Biotechnology - Therapeutics Aug 2010 280.4 Sep 2010 292.5 Oct 2010 184.1 Nov 2010 138.1 Dec 2010 54.5 Jan 2011 276.7 Feb 2011 359 Mar 2011 131.9 Apr 2011 270.5 May 2011 159.6 June 2011 379.4 July 2011 400.1 12 month Total 2926.8

Financing IN Europe
in USD millions Biotechnology - Therapeutics Aug 2010 3.85 Sep 2010 111.6 Oct 2010 41 Nov 2010 42.7 Dec 2010 98.4 Jan 2011 195.3 Feb 2011 47.5 Mar 2011 6.2 Apr 2011 21.7 May 2011 61.8 June 2011 22.6 July 2011 19.5 12 month Total 672.2

Source Biotechgate

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Biotech Financing3

Therapeutic Biotech Financial Rounds

500 In Million USD 400 300
US

200 100 0
Aug 10 Sep 10 Okt 10 Nov 10 Dez 10 Jan 11 Feb 11 Mrz 11 Apr 11 Mai 11 Jun 11 Jul 11

Europe

Therapeutic Biotech Financial Trends

450 400 350 300 250 200 150 100 50 0
Aug-10 Sep-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11

In Million USD

Europe US

Source Biotechgate
Copyright 2011 Venture Valuation VV Ltd. All rights reserved. This report is provided for information purposes only. All information regarding financing rounds, deal summaries and merger and acquisition transactions was obtained from company websites or industry newsletters including Fiercebiotech, OnBioVC, and SECA. The above information can also be accessed on the Biotechgate website. All graphical information was provided via Biotechgate. While the information contained herein has been obtained from sources deemed reliable, Venture Valuation VV Ltd makes no guarantees that it is accurate, complete, timely, or sequential. For more information about Biotech companies, including deal, licensing and financing round details, please visit the Biotechgate website at www.biotechgate.com

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