FORT WORTH, TX. –Novartis AG, parent company of Alcon, has a definitive agreement to purchase Encore Vision, a TECH Fort Worth client for more than 10 years. Encore Vision, founded by CEO William Burns, is focused on a topical treatment for presbyopia that would greatly reduce the need for bi-focals and reading glasses.
Terms were not disclosed. The transaction, according to Novartis, is subject to customary closing conditions, including regulatory approval.
“This is a huge win for Fort Worth,” said Darlene Boudreaux, Executive Director of TECH Fort Worth and founder of Cowtown Angels. “This represents the very first ‘exit’ for our Cowtown Angels members; we hope it is the first of many, because when local investors and entrepreneurs make money, they tend to invest in more companies in their local community.”
Cowtown Angels (www.CowtownAngels.org) is a program of TECH Fort Worth that brings investors and entrepreneurs together. It began in September 2012 and enables individual investors to benefit from a group’s knowledge and efforts, yet still invest as individuals.
“Bill was the presenter at our first meeting when we wanted the Fort Worth angel investor community to understand the quality of entrepreneur they were likely to meet by joining the group,” Boudreaux said. “About a year later, after he made a
formal presentation at a Cowtown Angels meeting, several Cowtown Angels members invested $1,250,000 in Encore Vision and many continued to invest in later rounds of equity raises.”
Cowtown Angels members have invested more than $14 million in 18 companies. Members pay an annual fee of $1,500 to Cowtown Angels and meet monthly to hear pitches from companies seeking equity investments. TECH Fort Worth manages the process and helps companies prepare to pitch to the group.
It is estimated that more than 80% of adults over the age of 45 develop presbyopia, which is age-related loss of near distance vision. Encore’s EV06 eye drop, which softens the lens, has shown positive results in phase I and II clinical trials. According to Novartis, there are no safe, effective and well-tolerated topical treatments available that could stop progression of or reverse the condition. There are an estimated 1.8 billion people who need reading glasses worldwide and more than 100 million in the U.S.
“There is a large need for innovative, effective and safe treatment options for people with presbyopia and there is no disease-modifying treatment available,” Vasant Narasimhan said in a statement issued by Novartis. He is the company’s global head of drug development and chief medical officer.
After having retired from Alcon, Burns was referred to TECH Fort Worth by its community partner, the University of North Texas Health Science Center. Encore Vision joined TECH Fort Worth’s ThinkLab program in early 2008. ThinkLab is a program for entrepreneurs in the very early stages of putting together a business model for their proprietary technologies. Entrepreneurs learn how to communicate the value of their technology in a way that will attract the resources they will need to move it forward, including money, people and advisers. After completing the ThinkLab program, Encore Vision became a SmartStart client, for coaching and mentorship by the TECH Fort Worth staff. The company did its early laboratory work at UNTHSC and continues to have its business offices at TECH Fort Worth.
“This is a great example of a community coming together to successfully get a new medical product from conception to the market,” Boudreaux said. “For TECH Fort Worth, this is further validation for our model of bringing together entrepreneurs, investors, advisers and mentors, supported financially by universities, the City of Fort Worth and our corporate sponsors.”
TECH Fort Worth is a non-profit technology incubator with offices at the James E. Guinn Complex in Fort Worth, at UNT Health Science Center and at the University of Texas at Arlington. For more information, call (817) 339-8968 or go to www.techfw.org. Complete information about the Cowtown Angels program can be found at www.CowtownAngels.org. Whitley Penn CPAs and Consultants is the major corporate sponsor of the Cowtown Angels program.
