TORONTO, January 6, 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 a CN$5.4 million investment in Targanta Therapeutics (Ontario) Inc., a subsidiary of Targanta Therapeutics, Inc. ("Targanta").
In December 2005, Targanta acquired the worldwide ownership interest in oritavancin, an antibiotic that has completed two Phase III clinical trials. Oritavancin, used to treat Gram-positive bacterial infections, was acquired from InterMune, Inc. (NASDAQ:ITMN).
Targanta is a privately held biopharmaceutical company headquartered in Indianapolis, Indiana, with its research and development operations in St. Laurent, Quebec. The VenGrowth Advanced Life Sciences Fund Inc. and VenGrowth III Diversified Fund participated in the most recent financing round that will help establish an Ontario operation to support the company's goal of submitting oritavancin for FDA regulatory approval.
Oritavancin is a semi-synthetic glycopeptide antibiotic with bactericidal activity against clinically relevant serious Gram-positive infections, including multi-resistant strains. Two large multicenter Phase III studies, conducted by Eli Lilly and InterMune, in over 1750 patients have demonstrated that oritavancin is an effective and safe therapy for complicated skin and skin structure infections. Additional indications, including nosocomial pneumonia (infection of the lungs contracted during a hospital stay) and catheter-related bacteremia (presence of bacteria in the blood associated with in-dwelling catheters), will also be evaluated.
The Targanta investment is in line with VenGrowth's strategy of mitigating risks by backing later-stage life sciences opportunities that have the potential to build significant shareholder value. In December 2005, VenGrowth successfully sold its interest in Cita NeuroPharmaceuticals Inc. ("Cita") less than three years after its initial investment, when the Ontario-based neuropharmaceutical company was acquired by UK-based Vernalis plc.
"The recent Cita acquisition highlighted the benefits of VenGrowth's focus on life sciences companies with proven management teams and products that are well down the path to commercialization," said Jeff Courtney, VenGrowth General Partner. "Targanta is another excellent example of this strategy. Collectively, the Targanta management team has participated in the development of more than 50 drug candidates."
"There is a critical demand for new antibiotics to treat hospital and community-acquired bacterial infections that are resistant to existing antibiotics," explained Pierre Etienne, M.D., Targanta's President and CEO. "Oritavancin has the potential to be the best-in-class antibiotic for serious Gram-positive infections in the hospital market. The partnership with VenGrowth will support the further development and commercialization of this product."
The US Centers for Disease Control and Prevention estimates that every year two million Americans acquire infections while in hospitals, and 90,000 die. Approximately 70 per cent of the hospital infections are resistant to at least one class of existing antibiotics.
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 more than 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 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 $135 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 $211.2 million as of December 30, 2005.
About Targanta
Targanta Therapeutics is a privately-held venture-backed biopharmaceutical company developing and commercializing antibacterial drugs to treat serious infections in the hospital setting. Its pipeline includes an array of antibacterial agents in various stages of development. The company is headquartered in Indianapolis, Indiana, and has research and development operations in St. Laurent, Quebec. The company's venture capital investors are Seaflower Ventures, VenGrowth Private Equity Partners, MDS Capital, T2C2/Bio, Fonds de Solidarite FTQ, GeneChem and CDP Capital. For more information about Targanta, visit the company website, www.targanta.com.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
