TORONTO, November 18, 2005 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1.1 billion in assets under management, today announced it will exit its investment in Cita NeuroPharmaceuticals Inc. ("Cita") following the completion of an acquisition by Vernalis plc ("Vernalis"). Cita has announced that it has agreed to the sale of its entire share capital to UK-based Vernalis in a deal worth up to US$64.5 million. The acquisition, expected to be completed on December 14, 2005 subject to receipt of Vernalis shareholder approval, will include an up-front payment to Cita's shareholders in cash and Vernalis shares and milestone payments based on the development of Cita's drug candidates.
The VenGrowth Advanced Life Sciences Fund Inc. (the "Fund") is the only major venture investor in Mississauga-based Cita, having first invested in December 2002 when the company was named GB Therapeutics Inc. The Fund will have invested over $14 million in the company in total by the time the acquisition is completed. The increased value of Cita, based on a strategic alliance with Italian pharmaceutical company Chiesi and advanced discussions with Vernalis, positively impacted the Fund's Net Asset Value Per Share in 2005.* The Fund's shareholders also stand to benefit from the potential upside generated from milestone payments made by Vernalis in the future.
"The acquisition of Cita represents an exceptional first exit for the Fund and is the best possible validation of our conservative investment mandate," said Dr. Luc Marengère, VenGrowth Managing General Partner and Lead Manager of the Fund. "Shareholders are already starting to harvest the benefits of our focus on life sciences companies with proven management teams and products that are already on the path to commercialization. The sale of Cita comes less than three years after our first investment, an exit horizon consistent with our later-stage focus"
The Fund, launched in January 2002, invests in Canada's most promising biotechnology, diagnostic and medical device & imaging companies. Cita is a neuropharmaceutical company focused on the development and commercialization of unique therapeutics for diseases of the central nervous system. Lead drug candidates include a phase III compound for the treatment of Parkinson's Disease and a phase II compound for neuropathic pain (pain caused by nerve damage).
Morningstar profiled the VenGrowth Advanced Life Sciences Fund and Dr. Luc Marengère this month as part of its Manager Monitor series. Visit www.morningstar.ca
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 $121 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 high profile members of the US and Canadian 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 $209.5 million as of November 11, 2005.
About VenGrowth
With over $1.1 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 over 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.
* VenGrowth Advanced Life Sciences Fund Inc. Returns (%): 1 yr 6.1%, 3 yrs 0.2%, Since Inception -0.7% (as of October 28, 2005).
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
