Toronto, October 27, 2004 - VenGrowth Capital Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a $5 million investment in Toronto-based Interface Biologics Inc. ("Interface"). The VenGrowth Advanced Life Sciences Fund co-led a $10 million financing with Business Development Bank of Canada. Genesys Capital Partners also participated in the round - one of the largest financings in the Canadian medical device sector this year.
Interface is a spin out company from the research laboratory of worldwide biomaterials authority and University of Toronto Professor Dr. Paul Santerre. The company has developed a platform of novel technologies for a range of common medical devices that are implanted in or on the body, such as stents, catheters or wound dressings.
Interface's technology enables manufacturers to introduce a number of therapeutic values to medical devices in order to significantly improve clinical outcome for patients. For example, Interface's technologies enable a coronary stent to dispense multiple drugs at programmed rates or protect patients with catheters from infection, blood clotting or other common side effects. These "combination" devices can control the response of the body to receiving a foreign object, thereby improving the effectiveness of medical devices and reducing the need for re-application.
A prime example of a combination product is the drug eluting coronary stent, first introduced to the US market in 2003 by Johnson & Johnson. The drug-coated stent offers superior clinical performance when compared to bare metal stents. The worldwide market for drug eluting coronary stents, just one of many applications for combination products, is projected to grow to US$5.5 billion by 2006.*
"The combination device market offers significant medical and economic opportunities, and we believe that Interface is unique in this area," said Jeff Courtney, VenGrowth General Partner and a lead manager of the VenGrowth Advanced Life Sciences Fund. "Unlike many companies in the field, Interface has multiple technology platforms that allow them to meet a wide range of needs for medical device manufacturers."
A key competitive advantage of Interface's technology is the fact that it can be integrated directly into existing manufacturing processes for many medical devices, offering substantial cost savings for combination device manufacturers.
"We are delighted that VenGrowth has co-led this important round of financing," said Dr Paul Santerre, President and Chief Scientific Officer of Interface. "This capital will allow us to further accelerate the development of our product platform, expand our management and scientific team, build on our partnership program with leading medical device companies and explore new technologies."
*Morgan Stanley - February 2004.
About VenGrowth Advanced Life Sciences Fund
The VenGrowth Advanced Life Sciences Fund Inc. focuses on advanced investment opportunities within Canada's high growth life sciences sector. Launched in 2002, the Fund has invested $92.8 million in a diversified portfolio of companies - elevating VenGrowth to a leadership position among investors in the burgeoning life sciences area. Sectors targeted by the
Fund include biotechnology, pharmaceuticals, diagnostics, medical devices and imaging products and other special life sciences opportunities. This diversified approach is designed to offer investors the combined benefits of high return potential and lower risk. The Fund is managed by a team of specialized VenGrowth professionals led by Dr. Luc Marengère, a highly regarded scientist and venture manager. The Fund also leverages the expertise of an external advisory board including leading members of the North American medical and life sciences communities. In addition to expert management, the Fund offers investors long-term performance potential, 100% RRSP-eligibility and, through its labour-sponsored investment fund structure, eligibility for substantial tax credits. The Fund had net assets of $161.4 million as of September 24, 2004.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished team of seasoned private equity managers has invested over $1 billion in 175 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 160,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. References to VenGrowth in this press release include those VenGrowth Funds under common management. For more information, please visit www.vengrowth.com .
About Interface
Interface, a University of Toronto, University of Toronto Innovations Foundation and Materials and Manufacturing Ontario (a division of Ontario Centres of Excellence Inc.) spin out company, develops leading edge medical devices that incorporate biopharmaceuticals and therapeutic agents. The focus of Interface is to build bioresponsive materials that are engineered for controlled drug delivery and tissue engineering applications. The Company is applying novel polymer technologies to modify existing products that will increase blood and tissue compatibility, establish the timely release of drugs in vivo, and stimulate tissue regeneration for a broad-spectrum of biomaterials and devices including catheters, wound dressings and vascular stents. For more information, please visit www.interfacebiologics.com
For further information:
Angus Fisher
VenGrowth Capital Partners Inc.
(416) 628 9255
afisher@vengrowth.com
