Venture fund's later-stage focus rewards shareholders within three years of initial Cita investment
TORONTO, December 16, 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 has successfully exited its investment in Cita NeuroPharmaceuticals Inc. ("Cita") following the completion of an acquisition by Vernalis plc ("Vernalis").
Mississauga-based Cita, a privately held company focused on commercializing therapeutics for diseases of the central nervous system, has completed the sale of its entire share capital to UK-based Vernalis in a deal worth up to US$64.5 million. The acquisition includes an up-front payment to Cita shareholders and milestone payments based on the development of Cita's drug candidates. The VenGrowth Advanced Life Sciences Fund Inc. ("the Fund") was the only major venture investor in Cita; having first invested in December 2002 when the company was named GB Therapeutics Inc. The Fund invested almost $16 million in the company in total.
"VenGrowth's life sciences investment specialists invest behind strong management teams and existing products that have demonstrated the potential to meet large, underserved medical needs," said Dr. Luc Marengère, VenGrowth Managing General Partner and Lead Manager of the Fund. "Cita's success is the finest validation of this approach and we are delighted that the Fund's conservative investment mandate is already beginning to reward shareholders."
The Fund, launched in January 2002, invests in Canada's most promising biotechnology, diagnostic and medical device & imaging companies. Although it typically takes between five and eight years to develop a company and its products to the stage that it is ready for a successful liquidity or "exit" event, Cita was sold less than three years after the Fund's initial investment.
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 almost $124 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 $208.6 million as of December 9, 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 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
