Drug money. (Wall Street West).

Nanostream Inc., a Pasadena-based biotech start up, has raised $22 million in its third round of funding.

AEA Investors and Lilly BioVentures, the venture capital arm of Eli Lilly and Co., led a group investors in the Series C financing that included prior investors Techno Venture Management and Flagship Ventures.

Nanostream is developing miniature products that speed up the drug development process by automating drug reactions.

The company, which started up three years ago, hit the market with its first product this quarter, and hopes to raise another $3 million. It raised $11 million previously.

"Even with a product on the market it's been a challenging environment (to raise money), but we have been very fortunate," said chief executive Steve O'Connor.