Toronto, April 26, 2005 - VenGrowth Private Equity Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced a US$5 million investment in ActivBiotics Canada Inc. ("ActivBiotics"). The financing will be used to further develop an antibiotic compound that is currently in phase II testing for two separate programs. One program is focused on the treatment of infections caused by Clostridium difficile ("C.difficile") - a bacterium that has contributed to the deaths of more than 200 people in Quebec in recent years. The Canadian outbreak is the subject of high profile medical investigations.
The VenGrowth Advanced Life Sciences Fund Inc. investment has helped to form a Canadian arm of US-based ActivBiotics Inc. in order to expedite the testing of lead compound rifalazil. The compound has exhibited high potency in human trials. ActivBiotics Canada Inc. has the worldwide rights to market the product (outside of the US). VenGrowth General Partner Jeff Courtney has joined the ActivBiotics Board of Directors
"The fact that ActivBiotics has an antibiotic compound that has already been shown to have a safe and clinically efficacious profile in investigational studies to date made this a very attractive partnership for us," said Jeff Courtney, General Partner, VenGrowth. "Rifalazil's unique potency against bacterial infections gives it the potential to have a major impact in several areas of the multi-billion dollar infectious disease market."
"With key clinical studies underway for two programs, we feel that this is the ideal time to expand our strategic network to Canada through this partnership with VenGrowth," said Steve Gilman, Ph.D., President and Chief Executive of ActivBiotics. "VenGrowth's strong funding support and experienced life sciences team will add value as we develop rifalazil as front-line therapy for infectious diseases."
Rifalizil up to 500 times more potent than existing C.difficile treatment
C.difficile, particularly dangerous to the very weak patient and the elderly, is an opportunistic bacterium that can colonize the gut following antibiotic therapy and attack the lining of the colon resulting in severe diarrhea. The life-threatening infection can be spread from one person to another, particularly in a hospital setting - as evidenced by recent outbreaks in Canada. C.difficile has proven difficult and expensive to treat and patients currently suffer from a high relapse rate. Rifalazil is up to 500 times more potent than the most commonly used antibiotic, suggesting a significantly lower failure rate. Its potency would also enable rifalazil to be administered at a lower concentration, causing fewer side effects.
Rifalazil is also currently being tested as a treatment for the most common bacterial infection in humans - peptic ulcer disease caused by Helicobacter pylori ("H.pylori"). The disease infects 35% of the world's population during their lifetime. Annual healthcare costs of treating peptic ulcer have reached nearly US$6 billion. Current treatments, which experience up to 20% failure, require patients to take between eight and 16 tablets a day for up to two weeks. Rifalazil has the potential to reduce treatment time to as low as three days with fewer capsules per day.
Phase II testing for both programs is scheduled to be completed this year.
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 over $110 million in a diversified portfolio of companies - elevating VenGrowth to a leadership position among investors in the 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. 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 $199.8 million as of February 28, 2005.
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 private equity managers have invested over $1.1 billion in 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 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. For more information, please visit www.vengrowth.com.
About ActivBiotics
ActivBiotics, Inc. is a private biopharmaceutical company in Lexington, MA, focused on the discovery, development and commercialization of novel antibiotics to treat serious infections. The Company's lead product candidate, rifalazil, is in Phase 2 clinical trials for the treatment of peptic ulcer disease caused by Helicobacter pylori. ActivBiotics is also investigating the use of rifalazil for Clostridium difficile-associated disease. The Company's lead pre-clinical compound in a pipeline of novel rifamycins, ABI-0043, shows significant potential for the treatment of infections caused by Gram-positive pathogens, including Staphylococcus aureus and MRSA (methicillin-resistant Staphylococcus aureus).
For further information:
Angus Fisher
Media Relations
VenGrowth Private Equity Partners Inc.
Ph: 416 628 9255
afisher@vengrowth.com
