BioAdvance Portfolio Companies Cap Successful Year With A Venture Round Financing And Acquisition ‘Exit’

PHILADELPHIA, Jan. 5 /PRNewswire/ -- BioAdvance, the Biotechnology Greenhouse of Southeastern Pennsylvania, today announced major developments for two of its portfolio companies, capping a year of significant achievement for its Greenhouse Fund recipients Avid Radiopharmaceuticals, a molecular imaging company developing diagnostic agents for Alzheimer’s disease, today announced the closing of $8.9 million of institutional funding and dermatology start-up SansRosa recently was acquired by CollaGenex Pharmaceuticals. The year also included one other successful “exit” through acquisition, two other venture financings, a major corporate partnership, a product approval and advances in clinical programs. In just over three years, BioAdvance has helped launch more than two dozen life sciences companies in southeastern Pennsylvania and has invested more than $10 million from its Greenhouse Fund in these new enterprises.

Exits through acquisitions are important to the BioAdvance vision because they validate the technology choices of these start-ups, generate wealth for the region and create a new generation of proven entrepreneurs. A major highlight of the year included the acquisition of two BioAdvance-funded ventures by larger companies. In addition to SansRosa, cancer vaccine company Alteris Therapeutics was acquired by Celldex Therapeutics. In total, three BioAdvance-funded firms have now been acquired, all by companies headquartered in the greater Philadelphia life sciences corridor, including spinal device maker Gelifex, which was acquired by the global device firm Synthes, Inc. in 2003.

A second highlight of the year was the ability of BioAdvance’s start-ups to raise follow-on venture capital, a critical challenge facing young enterprises. In addition to Avid, anti-infectives developer Protez Pharmaceuticals raised a $15 million institutional venture round in 2005.

“The 2005 achievements of our portfolio companies demonstrate that BioAdvance’s help with early stage financing and business assistance can make a difference in moving these young companies to the next stage,” said Barbara S. Schilberg, managing director and CEO of BioAdvance. “Our seed investments in 29 young companies and projects over the past 32 months are bearing fruit, as evidenced by the tangible progress achieved by so many of our portfolio firms. We expect to see this pace continue in the coming year as other portfolio companies leverage our funding to achieve important milestones.”

A third highlight of the year was the ability of BioAdvance portfolio companies to achieve major clinical and commercial milestones. RetinaPharma Technologies received FDA clearance to market its proprietary TonoPach(TM) system that enables more accurate diagnosis of glaucoma and ocular hypertension, leading causes of preventable blindness among adults. Acuity Pharmaceuticals successfully completed its Phase 1 safety trial and launched Phase 2 studies of its compound to treat macular degeneration based on the revolutionary new gene silencing technology of RNA interference. Yaupon Therapeutics completed preparations for initiating pivotal clinical trials for its new product for cutaneous lymphoma early in 2006 and wrapped up the initial safety study for its first-in-class agent to treat the scourge of methamphetamine addiction. And the potentially breakthrough nanotechnology platform of cancer firm Marillion Pharmaceuticals was validated by a major publication in the prestigious scientific journal PNAS (Proceedings of the National Academy of Sciences).

“The recent accomplishments of our diverse group of promising firms is a testament to the unique strengths of our region, which make it possible for life sciences entrepreneurs to access important new technologies and then to leverage the rich network of drug development and associated business resources concentrated here in greater Philadelphia,” said Gary Kurtzman, M.D., managing director and COO of BioAdvance. “This supportive community has been and will continue to be critical to the success of these ventures.”

Ms. Schilberg concluded, “The progress of these companies confirms that the initiatives launched by Pennsylvania to support new life sciences ventures are working -- compared to prior years, we have tripled seed capital for life sciences companies in the region, created a new generation of entrepreneurs, demonstrated the quality of regional firms seeking early-stage investments and helped advance potentially important new treatments for serious diseases.”

BioAdvance plans to select additional companies for its portfolio in February, and anticipates additional milestones for its companies throughout the coming year.

About BioAdvance

As part of a $2 billion initiative of the Commonwealth of Pennsylvania for the life sciences, BioAdvance received $33.8 million to accelerate the creation of life sciences jobs and businesses in Southeastern Pennsylvania. Since its inception in 2002, BioAdvance has committed more than $10 million of its Greenhouse Fund to 29 enterprises and research projects. Their technologies and products cover an array of innovations -- from powerful new diagnostics to medical devices and promising therapies for a variety of disabling and life threatening conditions including cancer, Alzheimer’s disease, macular degeneration, obesity, drug resistant infections, intractable pain, and addiction. For more information on BioAdvance and its portfolio companies, please visit http://www.bioadvance.com

CONTACTS: Ellen Semple Barbara Lindheim BioAdvance GendeLLindheim BioCom Partners 215 966-6207 212 918-4650 esemple@bioadvance.com

BioAdvance

CONTACT: Ellen Semple of BioAdvance, +1-215-966-6207,esemple@bioadvance.com; or Barbara Lindheim of GendeLLindheim BioComPartners for BioAdvance, +1-212-918-4650

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