WAYNE, Pa.--(BUSINESS WIRE)--Safeguard Scientifics, Inc. (NYSE:SFE - News), a holding company that builds value in growth-stage technology and life sciences companies, today announced a $26 million Series C financing round for Avid Radiopharmaceuticals, Inc., a leader in the development of molecular imaging products for neurodegenerative diseases, of which Safeguard provided $7.3 million. Safeguard co-led the round with AllianceBernstein Venture Fund, a leading global investment management firm, with additional funding provided by Pfizer Strategic Investments Group, a part of Pfizer Inc, which discovers, develops and markets leading prescription medicines for humans and animals; Lilly Ventures, the venture capital arm of Eli Lilly and Company, a leading innovation-driven pharmaceutical company; RK Venture Group, a venture capital partnership that provides capital and management support to seed and early-stage companies; and BioAdvance, the Biotechnology Greenhouse of Southeastern Pennsylvania.
Based in Philadelphia, PA, Avid is a clinical-stage company developing innovative molecular imaging products with the potential to revolutionize early detection, diagnosis and monitoring of brain disorders, including neurodegenerative diseases such as Alzheimer’s disease (AD), Parkinson’s disease (PD) and Dementia with Lewy Bodies (DLB). Avid intends to use the proceeds from this financing to advance its pipeline of novel molecular imaging agents.
“We partner with growth-stage, entrepreneurial life sciences companies that have a competitive advantage in a market that represents a sizable opportunity,” said Peter J. Boni, President and CEO of Safeguard. “As our population ages, effective and value-oriented healthcare products continue to attract greater demand. We believe that Avid is well positioned to execute upon its plan to address a critical need to improve upon our ability to diagnose and stage Alzheimer’s, Parkinson’s and other devastating neurological disorders.”
Collectively, AD, PD and DLB represent nearly 80% of the memory disorders that affect patients in the United States. According to a recent report issued by the World Health Organization entitled “Neurological disorders: Public Health Challenges,” nearly one billion people worldwide are affected by neurological disorders. An estimated 6.8 million people die every year as a result of neurological disorders. As the global population ages, there is an increasing demand for innovative, accurate solutions to diagnose these diseases. Avid’s vision is to develop novel diagnostic imaging agents to enable earlier and more accurate diagnosis, treatment selection and therapeutic monitoring for these significant medical disorders.
“Avid is a leader in the development of radiopharmaceutical imaging agents for CNS diseases, which is a fast-growing, underserved market,” says James A. Datin, Executive Vice President and Managing Director of Life Sciences at Safeguard. “These agents have the potential to revolutionize early diagnosis and monitoring of neurodegenerative diseases and may become major growth drivers in the radiopharmaceutical business. Avid benefits in its efforts from a team of individuals who have significant experience in product development in both neurology and nuclear medicine. We welcome Avid as a Safeguard partner company and look forward to providing them with strategic guidance and other resources to help grow their business.”
As part of this transaction, Gary J. Kurtzman, MD, Vice President of Life Sciences at Safeguard, has joined Avid’s Board of Directors.
“The financial support that we received proves that these partners understand the value of diagnostic imaging technology, and acknowledge that there is a rare opportunity to take a leadership position in this space,” says Daniel Skovronsky, MD, PhD, CEO and President of Avid. “Every new technology needs a strong advocate, and that’s what we found with Safeguard Scientifics and our other financial partners. With their support, we believe that we’ll be successful in developing a test capable of accurately diagnosing Alzheimer’s disease and providing the basis for initiating therapy and monitoring response, representing a major shift in the diagnosis and treatment of neurodegenerative diseases.”
About Avid
Avid Radiopharmaceuticals, Inc. is developing novel diagnostic imaging agents to enable earlier and more accurate diagnosis, treatment selection and therapeutic monitoring of major medical disorders. The company is a pioneer in the development of molecular imaging agents for Alzheimer’s disease and other neurological disorders and is developing products for imaging with both positron emission tomography (PET) and single photon computed tomography (SPECT). The company has a collaboration in place with Bayer Schering Pharma AG to develop its first PET molecular imaging agent for AD. In addition, Avid is currently conducting clinical studies on a pipeline of next generation PET and SPECT agents. The company also has collaborative relationships with leading molecular imaging researchers at the University of Pennsylvania and the University of Michigan. For more information, visit www.AvidRP.com.
About Safeguard
Safeguard Scientifics, Inc. (NYSE:SFE - News) builds value in growth-stage technology and life sciences businesses. Safeguard provides growth capital as well as a range of strategic, operational and management resources to our partner companies. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. www.Safeguard.com
Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. These forward-looking statements that could cause actual results to differ materially, include, among others, managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, the ability to execute our strategy, the uncertainty of the future performance of our companies, acquisitions and dispositions of companies, the inability to manage growth, compliance with government regulations and legal liabilities, additional financing requirements, the effect of economic conditions in the business sectors in which our companies operate, and other uncertainties described in the Company’s filings with the Securities and Exchange Commission. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.
Contact: For Safeguard Scientifics Gregory FCA Kristy Lash, 610-642-8253 or 484-686-4775 Kristy@GregoryFCA.com or For Avid Radiopharmaceuticals Alan P. Carpenter, Jr., Ph.D., J.D. 215-966-6208 carpenter@avidrp.com
Source: Safeguard Scientifics, Inc.
