Ebb & Flow

Acqua Capital marked its return to biotech investing last week with its largest ever financing facility - a $200 million equity line for cardiovascular play CV Therapeutics (CVTX). Although the deal was with a longtime client - Acqua (then Acqua Wellington) provided CVTX with a $120 million equity line in 2000 - the firm maintains that it's open to new names as well.

Indeed, the firm's sweet spot will be biotechs valued between $150 million and $1.5 billion. Acqua's Isser Elishis told Ebb & flow the firm wants to set up 15-20 equity facilities with biotech companies.

But companies and bankers thinking about calling on the firm for investments probably should reconsider. The reason, said Elishis, is that "we do mostly open market purchases and don't really invest in PIPEs or converts. With all the volatility in biotech, I don't like the concept of launching my whole investment in one bullet. PIPEs make you put too much money to work at once. I'd rather go into the market and buy

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