Healthcare – 25 Deals & Investments – Week 46 2015

VC Deals (11 deals, $340M)

Verisma Systems, a Pueblo, Colo.-based provider of “release of information” services to healthcare organizations, has raised $14.55 million in growth equity funding co-led by NewSpring Capital and Blue Heron Capital

miRagen Therapeutics, a Boulder, Colo.-based developer of microRNA-based therapeutics, has raised $41 million in Series C funding. MRL VenturesandJAFCO co-led the round, and were joined by Brace Pharma Capital, MP Healthcare Venture Management and return backers Atlas Venture, Boulder Ventures, Remeditex Ventures and Amgen Ventures

NightstaRx Ltd., a London-based developer of gene therapies for inherited retinal dystrophies, has raised $35 million in Series B funding. New Enterprise Associates led the round, and was joined by existing backer Syncona (an independent subsidiary of Wellcome Trust)

TigerText, a Santa Monica, Calif.-based provider of secure messaging startup for healthcare professionals, has raised $50 million in Series C funding. Norwest Venture Partners led the round, and was joined by Invus Group, Accolade Partners and return backers Shasta Ventures, OrbiMed, and Reed Elsevier

Alphaeon Corp., an Irvine, Calif.-based provider of healthcare and beauty products that works in partnership with physicians, has raised $70 million in Series B funding. The round size was undisclosed in the company’s press release, so this figure comes from a source familiar with the situation. Sailing Capital led the round, and was joined by H&S Ventures, Longitude Capital and Chow Tai Fook Enterprises

HealthiestYou, a Scottsdale, Ariz.-based telehealth member engagement platform, has raised $30 million in growth equity from Frontier Capital

RetroSense Therapeutics, an Ann Arbor, Mich.-based developer of gene therapies designed to restore vision in patients suffering from blindness due to retinitis pigmentosa, has raised $6 million in Series B funding from RBV Capital, ExSight Capital, and Santen Pharmaceutical Co. and return backer BlueWater Angels

InnoUp Farma, a two-year-old, Noain, Spain-based nanomedicine company focused on developing and licensing therapies for major diseases with unmet medical needs, has raised €2 million ($2.14 million) in public-private funding from the local government business unit Sodena,  Inveready and the Spain Ministry of Economy and Competitiveness

Iron Horse Therapeutics, a new, San Diego-based company that will develop treatments for ALS (amyotrophic lateral sclerosis), has launched with $10 million in Series A funding. The money comes from Avalon Venturesand GlaxoSmithKline, which began collaborating on new companies two years ago

PE Deals (6 deals)

Genoa, a Pittsburgh-based portfolio company of Advent International, has acquired 1DocWay, a Chesterfield, Mo.-based outpatient telepsychiatry provider. No financial terms were disclosed. 1DocWay seed backers included iSeed Ventures, Waterline Ventures, Rock Health, Asset Management Ventures, DreamIt Ventures

 Geritrex, a Mt. Vernon, N.Y.-based maker of generic over-the-counter products and drugs, has acquiredPurinePharma, a Massena, N.Y.-based private label manufacturer and distributor of OTC generic products. No financial terms were disclosed. Geritrex is a portfolio company of BelHealth Investment Partners

Resonetics, a Nashua, N.H.-based portfolio company ofSverica Capital Management and Five Points Capital, has acquired Mound Laser and Photonics Center Inc., a Miamisburg, Ohio-based laser micro manufacturer of metal components for the medical device and defense industry. No financial terms were disclosed

Salt Creek Capital has sponsored a recapitalization ofWorkWell Medical Group Inc., a Salinas, Calif.-based network of occupational medicine and urgent care specialists and facilities. No financial terms were disclosed

Verti Capital has acquired unprofitable pharma retailer and wholesalerDrogaria Mais Econômica SA from listed Brazilian drugstore chain Brasil Pharma SA for approximately $12 million

Apollo Global Management has agreed to acquireRegionalCare Hospital Partners, a Brentwood, Tenn.-based owner and operator of eight non-urban hospitals, from Warburg Pincus. No financial terms were disclosed, but an earlier Bloomberg report suggested that RegionalCare could be valued at around $800 million

IPO Deals (4 deals)

Advanced Accelerator Applications SA, a French developer of molecular imaging and molecular therapy products, raised $75 million in its IPO. The company priced 4.7 million shares at $16 per share (middle of range). It will trade on the Nasdaq under ticker symbol AAAP, while Citigroup and Jefferies served as lead underwriters. Shareholders include HBM Healthcare Investments (9.4% pre-IPO stake)

SurgiQuest Inc., a Milford, Conn.-based maker of technologies for minimally-invasive surgery, has filed for a $75 million IPO. Piper Jaffray and Stifel are serving as lead underwriters. The company reports a $15 million net loss on $35 million in revenue for the first nine months of 2015. It has raised around in VC funding, from firms like CMEA Capital (27.9% pre-IPO stake), River Cities Capital (10.9%), Fletcher Spaght Ventures (10.5%), California Technology Ventures(10.5%) and Mosaix Ventures (6.5%)

Voyager Therapeutics, a Cambridge, Mass.-based developer of gene therapy solutions for fatal and debilitating CNS diseases, raised $70 million in its IPO. The company priced 5 million shares at $14 per share, compared to earlier plans to offer 4.69 million shares at between $15 and $17 per share. It has an initial market cap of around $360 million, and will trade on the Nasdaq under ticker symbol VYGR. Cowen & Co. and Piper Jaffray served as lead underwriters. Voyager Therapeutics had raised around $105 million in VC funding from Third Rock Ventures (52.6% pre-IPO stake), Aventis (11.2%), Fidelity (7.5%), Brookside Capital (5.6%), Partner Fund Management (5.2%), Wellington Management and Casdin Capital

WaVe Life Sciences, a Boston-based genetics startup focused on stereopure nucleic acid therapies for patients impacted by rare diseases, raised $102 million in its IPO. It priced 6.4 million shares at $16 per share, compared to original plans to offer 5 million shares at between $15 and $17 per share. Its initial market cap is around $397 million, and the company will trade on the Nasdaq under ticker symbol WVE. Jefferies and Leerink Partners served as lead underwriters. The company had raised around $84 million in VC funding from RA Capital Management, Foresite Capital, Kagoshima Shinsangyo Sosei, Fidelity, New Leaf Venture Partners, Redmile Group, Jennison Associates, Cormorant Asset Management and Clough Capital Partners

Other Deals (4 deals)

Astellas Pharma Inc. (Tokyo: 4503) has agreed to acquire Ocata Therapeutics Inc. (Nasdaq: OCAT), a Marlborough, Mass.-based regenerative medicine company. The deal is valued at around $360 million, or $8.50 per share (79% premium to Friday’s closing price)

Abcam PLC (AIM: ABC) has agreed to acquire AxioMx Inc., a Branford, Conn.-based developer of in vitro recombinant monoclonal antibody technology. The deal includes a $20 million upfront payment and upwards of $5 million in earn-outs. AxioMx had raised VC funding from Advantage Capital Partners, Connecticut Innovations, Elm Street Ventures and Vital Venture Capital

Fossil Group (Nasdaq: FOSL) has agreed to acquireMisfit, a Burlingame, Calif.-maker of wearables and sleep trackers, for $260 million. Misfit had raised over $60 million in VC funding from firms like Founders Fund, GGV Capital, Horizons Ventures, JD.com, Khosla Ventures, Norwest Venture Partners, OATV, Xiomai and TenOneTen Ventures

Mylan (Nasdaq: MYL) appears to have failed in its attempt to buy Irish drug-maker Perrigo (NYSE: PRGO) for $27 billion in cash and stock, after falling to get 50% of Perrigo shareholders to tender their stock. Perrigo’s board had asked shareholders to reject the offer, saying it undervalued the company

X-Sector Deal Data: Global announced M&A activity has reached $3.8 trillion, according to Thomson Reuters. That’s a 41% jump from last year-to-date, while the U.S. figure ($1.8 trillion) represents a 54% increase. Private equity-sponsored deals are up 39% globally, and a whopping 84% in the U.S

Sources: Term Sheet, Financial Times, StrictlyVC, TechinAsia, CrunchBase, TechCrunch, Bloomberg

The Propell Group

#healthtech #asia