Atlas Venture Reaps Rewards of Long-Term Commitment to Life Sciences as Biotech Stocks Outperform Expectations.Business/Health Editors BOSTON--(BW HealthWire)--Sept. 14, 2000 Seven Biotech Portfolio Companies Launch IPOs This Year: Actelion, deCODE genetics, Exelixis, MediGene, Modex Therapeutiques, Neurochem, Variagenics Atlas Venture, the international venture capital firm, announced record results for its life sciences investments this year. Since April, seven of Atlas Venture's biotech portfolio companies - four in Europe and three in North America - have launched initial public offerings, raising more than $750 million. As of September 1, 2000, these seven companies have an aggregate market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of more than $7 billion. In the mid-1990s, when many venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] were cutting back on biotech investments, Atlas Venture held to the view that biotechnology was key to the future and anticipated the impact of the Human Genome Project. Today, Atlas Venture is reaping the rewards of that strategy. "Unlike most venture firms that abandoned the sector in recent years to invest almost exclusively in Internet and communications companies, we have maintained a strong position in the biotech sector worldwide," says Jean-Francois Formela, Senior Principal at Atlas Venture. "Almost 50 of our 189 portfolio companies are in the life sciences sector," adds Dr. Formela. "We strongly believe in the value of a diversified portfolio, and the life sciences are a crucial component of that strategy. We focus on industry fundamentals rather than follow public market sentiment." George Scangos, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of San Francisco-based Exelixis, which pioneered the field of functional genomics, comments: "A few years back we had a couple of difficult moments at a time when the market had a negative view of biotechnology, but Atlas supported us throughout and helped us to realize our potential." This focus began to bear fruit early last year, when MorphoSys became the first biopharmaceutical company to list on the German Neuer Markt. Today, after the completion of the first draft of the Human Genome earlier this year, Atlas Venture's long-term strategy is paying off handsomely. Exelixis is trading at 253 percent over the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. price. Actelion, one of the largest biotech IPOs in Europe, rose 80 percent after its first day of trading and is currently trading 208 percent above its IPO price. Following is background on the seven Atlas Venture biotech portfolio companies that have gone public in 2000: Actelion Ltd. SWX SWX Swiss Exchange (trademark of SWX Swiss Exchange) SWX SolidWorks (3D solid modeling CAD software) SWX Splitter / Wave Division Multiplexer : ATLN Priced: April 6, 2000 Pre-money: CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 971M ($593M) Raised: CHF 260M ($159M) Current market cap (September 1, 2000): CHF 3.8B ($2.2B), up 208% from IPO Description: Actelion, the first Swiss biotech company to be floated on the Swiss New Market Index, is committed to pharmaceutical research and the development of new drugs, including new treatment for patients with acute and chronic heart failure. http://www.actelion.com deCODE genetics, Inc. NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on & EASDAQ See European Association of Securities Dealers Automated Quotation. : DCGN Priced: July 17, 2000 Pre-money: $601M Raised: $199M Current market cap (September 1, 2000):$1.2B, up 53% from IPO Description: deCODE genetics, based in Iceland, is a population-based genomics company conducting research into the inherited causes of common diseases. http://www.decode.com Exelixis Inc. NASDAQ: EXEL Priced: April 10, 2000 Pre-money: $438M Raised: $136M Current market cap (September 1, 2000): $2.0B, up 253% from IPO Description: Exelixis, based in South San Francisco South San Francisco, city (1990 pop. 54,312), San Mateo co., W Calif.; inc. 1908. South San Francisco has several industrial parks; its manufactures include medical supplies and equipment, foods, paint, paper products, consumer goods, and clothing. , is a leader in model system genetics and comparative genomics. Its proprietary technologies exploit the conservation of genes and gene function between diverse species to identify and understand gene function and to select commercial targets for the pharmaceutical, diagnostic, agricultural biotechnology and animal health industries. In June 2000, Exelixis was selected by Red Herring as one of the 50 private companies most likely to change the world. http://www.exelixis.com MediGene AG FNM FNM Faith No More (band) FNM Fábrica Nacional de Motores (Brazilian truck/motor company)) FNM Free National Movement (Bahamas) FNM Foot and Mouth : MDG MDG Millennium Development Goals (UNDP) MDG Madagascar (ISO Country code) MDG Medical Group (USAF) MDG Air Madagascar (ICAO code) Priced: June 30, 2000 Pre-money: Euro 448M ($426M) Raised: Euro 125M ($119M) Current market cap (September 1, 2000): Euro 826M ($734M), up 85% from IPO Description: MediGene, a German biotechnology company specializing in cardiology and oncology; the company has a number of products in pre-clinical and clinical development. http://www.medigene.com Modex Therapeutiques SA SWX: MDXN Priced: June 21, 2000 Pre-money: CHF 149M ($92M) Raised: CHF 83M ($51M) Current market cap (September 1, 2000): CHF 461M ($265M), up 99% from IPO Description: Modex Therapeutiques is a Swiss company focused on tissue repair, regeneration and replacement. http://www.modextherapeutics.com Neurochem, Inc. TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : NRM NRM Natural Resources Management NRM National Railway Museum (UK) NRM Norman Rockwell Museum (Stockbridge, Massachusetts) NRM National Resistance Movement (Uganda) Priced: June 13, 2000 Pre-money: C$105M ($71M) Raised: C$37M ($25M) Current market cap (September 1, 2000): C$155M ($105M), up 9% from IPO Description: Neurochem, located in Quebec, Canada, specializes in developing drugs for diseases characterized by toxic deposits of amyloid amyloid /am·y·loid/ (am´i-loid) 1. starchlike; amylaceous. 2. the pathologic, extracellular, waxy, amorphous substance deposited in amyloidosis, being composed of fibrils in bundles or in a meshwork of polypeptide protein. Current targets include Alzheimer's Disease, certain Systemic Amyloidosis Amyloidosis Definition Amyloidosis is a progressive, incurable, metabolic disease characterized by abnormal deposits of protein in one or more organs or body systems. disorders, Hemorrhagic Stroke and Type II Diabetes Type II diabetes Type II diabetes is the most common form of diabetes and usually appears in middle aged adults. It is often associated with obesity and may be delayed or controlled with diet and exercise. Mentioned in: Diabetic Ketoacidosis . http://www.neurochem.com Variagenics, Inc. NASDAQ: VGNX Priced: July 21, 2000 Pre-money: $234M Raised: $81M, plus $7.5M from a concurrent private placement Current market cap (September 1, 2000):$736M, up 94% from IPO Description: Variagenics, based in Cambridge, MA, is engaged in the business of identifying clinically important variances in genes that affect drug action, and applying this information to the discovery and development of new pharmaceutical products, diagnostic products and disease-management practices. http://www.variagenics.com About Atlas Venture Atlas Venture is the leading international, early-stage venture capital firm investing in Internet, communications, and health and life sciences companies. With offices in Amsterdam, Boston, London, Menlo Park, Munich, and Paris, Atlas Venture's investments are split evenly between the United States and Europe. Founded in 1980, Atlas Venture has organized five international funds, and currently manages $1.6 billion in committed capital. The Atlas Venture investment team is comprised of seasoned operating executives and career venture capitalists who have been deeply involved in the formation and development of more than 300 companies - from entrepreneurial startups to industry-leading enterprises - worldwide. Recent Atlas Venture portfolio company IPOs include Actelion (SWX: ATLN), deCODE genetics (Nasdaq: DCGN), Exelixis (Nasdaq: EXEL), Modex Therapeutiques SA (SWX: MDXN), Orchestream Ltd (LSE LSE - Language Sensitive Editor : OCH), SpeechWorks International (Nasdaq: SPWX SPWX Speechworks (stock symbol) ), and Variagenics (Nasdaq: VGNX). Recent acquisitions of Atlas Venture portfolio companies include Cerulean ce·ru·le·an adj. Azure; sky-blue. [From Latin caeruleus, dark blue; akin to caelum, sky.] Noun 1. Technology (Aether), eGroups (Yahoo), OnDisplay (Vignette), Trading Dynamics (Ariba), Omnia Communications (CIENA), RightPoint Software (E.piphany), and T.sqware (GlobeSpan). (For more information, see www.atlasventure.com.) About Dr. Formela Jean-Francois Formela joined Atlas Venture in 1993. Prior to joining Atlas Venture, he was Senior Director of Medical Marketing and Scientific Affairs at Schering-Plough in the United States, where he also held biotechnology licensing and marketing responsibilities. A French national, he received his MD from Paris University School of Medicine and received an MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration degree from Columbia University in New York. He is a member of the board of directors of numerous biotech companies, including BioChem Pharma, deCODE genetics, Exelixis, Variagenics and several private companies. Contact Information For further information on Atlas Venture, please call Karen Warner at (617) 488-2267 or Davia B. Temin of Temin and Company at (212) 588-8788. On the web, Atlas Venture can be visited at www.atlasventure.com. |
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