TORONTO, January 12, 2005 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, welcomes the announcement of an exclusive in-licensing agreement between portfolio company Axela Biosensors Inc. ("Axela") and global healthcare giant Kimberly-Clark. Under the deal, Axela gains exclusive rights to technology that will accelerate the commercialization of its novel diagnostic system. Kimberly-Clark will also be acquiring an equity interest in Toronto-based Axela as part of the agreement.
VenGrowth is the largest shareholder in Axela, having invested $8 million in the company through The VenGrowth Advanced Life Sciences Fund Inc. ("the Fund") since 2003.
"This deal with a global leader and household name in Kimberly-Clark provides strong validation of Axela's management team and product platform," said Jeff Courtney, VenGrowth General Partner. "For the Fund's shareholders, this is further evidence of the benefits of our conservative mandate of investing behind experienced management and products that are already on the path to commercialization. The deal with Kimberly-Clark increases the value proposition for Axela, a company poised to introduce its product to large markets in 2006."
Axela's unique "optical biosensor" system is based on three simple components: a specialized sensor that grabs and binds target substances from samples, such as proteins or antibodies; a laser that illuminates the sensor; and a detector that enables researchers to quickly analyze reactions. The technology will find commercial markets in therapeutic discovery and diagnostic testing. The product is in field trials with various research insitutions and pharmaceutical researchers.
Initially targeted at the clinical diagnostic market, the complementary technology in-licensed from Kimberly-Clark will further enable the product to also be used in the critical, billion dollar "point of care" market that includes emergency rooms, clinics and physicians offices. There is a strong medical trend towards testing samples on-site so patients can have access to information sooner. In the diagnostic market, the Axela technology could allow for a multitude of point of care tests, including: cardiac problems, women's health, infectious disease, inflammation and personalized medicine applications.
"The in-licensing of these technologies represents a significant contribution towards our planned product launch in 2006 and future platforms," said Rocky Ganske, Axela President and CEO. "VenGrowth, with its industry and venture experience, recognized the value of this opportunity immediately, supported Axela management, and was instrumental in the completion of the deal."
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 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 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 Axela
Axela Biosensors Inc. is a privately held Toronto-based company that is commercializing a novel biosensor platform that enables clinicians in diagnostic labs and first line health care workers to rapidly identify and quantify therapeutic and clinically relevant protein biomarkers in complex media without the need of fluorescent tags. The platform also enables researchers and scientists in academia and pharmaceutical research to rapidly detect and understand molecular interactions at their bench top in real-time. The company's venture capital investors include VenGrowth Private Equity Partners Inc., Primaxis Technology Ventures Inc., and Royal Bay Capital.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
