Monday, July 23, 2001
The venture crowd did more than their fair share of the financing work last week, with eight private equity deals accounting for $100.4 million (63%) of the $159.4 million raised. Only two public deals completed on the week: a $58 million follow-on by research tool provider Charles River (CRL) and a £735,000 ($1 million) IPO on London's AIM by Alltracel (LSE:AP.), which is developing polysaccharides for cancer therapeutics, cholesterol treatments and drug delivery.
CRL sold 2 million shares at $29, a 9% haircut from the company's $31.90 price prior to filing. Selling shareholders sold an additional 6 million shares in the deal, and are offering the entire 1.2 million-share shoe. Underwriters were CS First Boston; and Lehman.
Meanwhile, the first day of trading proved disappointing for AP., as shares of the Irish cancer and drug delivery company fell 36.5p (41%) to 52.5p on Thursday. CEO Gerard Brandon told Ebb & Flow that one shareholder who had been into the shares for about three years "had to exit his holding in the company." The 50,000-share block was bought by an undisclosed institution at 50p per share in one of the first trades of the day. AP., which has four products on the market, remained unchanged to close Friday with a market cap of £19 million ($27 million), down from its IPO valuation of £33 million. The company sold 825,843 shares at 89p in the deal underwritten by Seymour Pierce.
The week's bigger private equity deals included Scimagix, an imaging informatics play that raised $25 million from Dresdner Kleinwort; EuclidSR Partners; Tullis-Dickerson; Invesco; Future Capital; and Inglewood Ventures.
EluSys raised $17 million with investors in the infectious disease company including Invesco; Emerald Investment Partners; Eagle Advisors; Essex Woodlands Health Ventures; and Crescendo Ventures. Prolinx, a chemistry company, took in $16.8 million from Stephens Group; Wheatley Partners, Tullis-Dickerson; BA Venture Partners; Axiom Venture Partners; Technology Funding; Javelin Capital; MDS Ventures Pacific; and Sofinnova Ventures.
MetriGenix, a microfluidics spinout from Gene Logic (GLGC), took in $15 million from Oxford Bioscience Partners, Burrill Biotechnology Capital Fund; Infineon Ventures; and GE Equity (see Noteworthy, A9).
Finally, German chemical genomics company Morphochem bulked its cash position to nearly E49 million ($41.9 million) with a E15 million ($12.8 million) mezzanine round. Investors included Life Science Partners; TVM Techno Venture Management; Alta Berkeley; Alta California Partners; WestLB; Merlin Biosciences; Nomura International; Viscardi and other private investors.