TORONTO, July 5 /CNW/ - VenGrowth Private Equity Partners Inc. ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, has welcomed the acquisition of US-based Proventiv Therapeutics LLC ("Proventiv") by Canadian biotech company Cytochroma Inc. ("Cytochroma"). The acquisition expands Cytochroma's broad vitamin D product platform focused on the treatment and prevention of disorders such as chronic kidney disease ("CKD"), psoriasis and cancer. The strategic move also boosts the prospects of the Canadian biotech company taking a number of its products through to full commercialization here on Canadian soil.
"The Canadian biotech industry produces some of the best science in the world, but many local groups are forced to partner off their programs outside of Canada once they reach the commercialization stage," explains Dr. Luc Marengère, VenGrowth Managing General Partner. "The acquisition of Proventiv has greatly enhanced Cytochroma's capability to not only develop, but commercialize its groundbreaking vitamin D therapies. This is an important example for the Canadian biotech industry and something that VenGrowth is working to foster."
The acquisition of Proventiv adds a number of later-stage vitamin D drug candidates to Cytochroma's pipeline. The combined company now has multiple lead candidates in the clinic targeted at psoriasis, vitamin D deficiency and CKD. The CKD vitamin D market is large and growing rapidly; expected to triple in size to US$1.5 billion by 2010 in North America alone as the prevalence of kidney problems increases with the rise in obesity, hypertension and diabetes.
The acquisition also brings an experienced executive team, led by Charles W. Bishop, PhD, with a proven track record of taking drug candidates through clinical development and onto the market. Mr. Bishop is the past president and CEO of Bone Care International, which was acquired by Genzyme Corp. last year for US$600 million.
"Cytochroma's growth, both organic and through acquisition, fits with VenGrowth's philosophy of building Canadian life sciences companies," says Dr. Marengère. "By acquiring later-stage programs and adding proven management, Cytochroma is building its value and accelerating its path to a potential exit on behalf of shareholders."
The VenGrowth Advanced Life Sciences Fund Inc. is the largest and most recent investor in Cytochroma.
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 $148 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 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 $227.3 million as of June 30, 2006.
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 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.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628-9255
afisher@vengrowth.com
