WAYNE, Pa., Sep 29, 2011 (BUSINESS WIRE) -- Safeguard Scientifics, Inc. /quotes/zigman/564053/quotes/nls/sfe SFE -0.68% , a holding company that builds value in growth-stage life sciences and technology companies, today announced that it co-led a $21 million Series C financing for Putney, a Portland, ME-based specialty pharmaceutical company focused on providing high quality, cost-effective generic medicines for pets. Safeguard provided $10 million of financing; the additional capital was provided by NewSpring Health Capital and existing investors. Proceeds from the Series C will be used for product development and to enhance sales and marketing capabilities and additional operational and working capital needs.
"In 2011, we have deployed $55 million in three new life sciences companies, including Putney, driving forward Safeguard's goal to selectively deploy capital in new and exciting growth companies," said Peter J. Boni, President and CEO of Safeguard Scientifics. "Putney has a strong management team, a sizeable addressable market, a solid business model to drive value, momentum, and moat, meaning a defensible position and barriers to entry--all 5M's of Safeguard's go-to-market strategy. Putney's pipeline of products offers a unique solution for the unmet need in the care of companion animals today."
According to the American Pet Products Manufacturers Association (APPMA), over 60 percent of U.S. households have at least one companion animal, which included more than 171 million cats and dogs in 2010. Americans spent $47.7 billion on their animal companions in 2010, approximately $12.8 billion of which was spent on veterinary care.
"Putney has an experienced management team, a solid pipeline of new products, and a robust strategy in place to put generic drugs for companion animals in front of the FDA," said James A. Datin, EVP and Managing Director of the Life Sciences Group at Safeguard Scientifics, who will be joining Putney's Board of Directors. "While human generics have had significant market penetration--78% of all human prescriptions are filled by a generic--most FDA-approved drugs for companion animals lack a generic equivalent. This results in pet owners paying out of pocket for branded--and often expensive--veterinary drugs. Putney has a significant opportunity to reach both veterinarians and pet owners with a convenient and less expensive option for pets. Putney is a great addition to Safeguard's life sciences group and we look forward to working with the management team and board of directors to build an industry leader in generics for pets."
Despite slow economic growth, the APPMA estimates that spending on companion animals will continue to grow, as companion animals today have longer life spans and often require more medical treatments using more drug products. The total global market for companion animal pharmaceuticals is estimated to be $5.6 billion. Today, many pharmaceuticals approved by the FDA for companion animals have expired patents, but are sold as brand-name medications with no generic competition. Trone, Inc. reported that one-third of pet owners decreased visits to veterinary hospitals in 2010 because of poor economic conditions, while 45 percent postponed care, according to the National Commission on Veterinary Economic Issues (NCVEI).
"Pets are part of our families, yet there is a significant unmet need when it comes to their care," says Jean Hoffman, Founder, President and CEO of Putney. "At Putney, we're working to empower both veterinarians and pet owners with appropriate choices that allow them to pursue the best course of treatment, resulting in more satisfied pet owners and happier pets. This financing round provides Putney with the capital we need to hire additional management talent, ramp up our product acquisition and licensing program, and transform Putney into a stronger R&D and commercial organization. In addition, Safeguard's network of industry contacts and financial and operational expertise will help drive Putney's vision forward to become the leading provider of high quality, bioequivalent and specialty drugs supporting the U.S. veterinary community."
About Safeguard Scientifics
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. /quotes/zigman/564053/quotes/nls/sfe SFE -0.68% provides growth capital for entrepreneurial and innovative life sciences and technology companies. Safeguard targets life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine, Specialty Pharmaceuticals and selected healthcare services, and technology companies in Internet / New Media, Financial Services IT, Healthcare IT and selected business services with capital requirements of up to $25 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For more information, please visit our website at www.safeguard.com , our blog at blog.safeguard.com or you can follow us on Twitter at twitter.safeguard.com or on LinkedIn at linked.safeguard.com.
Putney is a pharmaceutical company committed to providing high quality, cost-effective generic medicines for pets. Putney's reliable supply of affordable drug options empowers veterinarians, allowing them to provide the best possible medicine at the best possible price, and supports pet owners, helping them afford to comply with veterinary recommendations. Putney's ongoing investment in research and development is focused on creating the next generation of generic veterinary products based on inputs from companion animal veterinarians and its industry partners. Learn more at www.putneyvet.com .
SOURCE: Safeguard Scientifics, Inc.
Theresa Murray, 610-642-8253 or 732-278-4473