Navigation Links
RiverVest Venture Partners Sells Four Successful Life Science Companies for More than $1 Billion

ST. LOUIS, Feb. 6, 2012 /PRNewswire/ -- RiverVest Venture Partners today announced that it successfully sold four life science companies for more than $1 billion, generated upfront returns of up to five times the initial investment, and beat industry benchmarks.

"RiverVest has really separated itself from the pack," says Boston-based investor John F. Brooke, who manages the Vectis Healthcare & Life Sciences Fund, which is an investor in RiverVest Venture Partners Fund II, L.P.

RiverVest, which focuses exclusively on life science innovations, founded two of the four companies within the last four years, bucking recent trends for early-stage life science companies to take an average of five to eight years from initial investment to sale. RiverVest participated with several other leading venture capital firms in these investments.

"At RiverVest we strive to build early-stage life science companies to sell within three to five years, including companies we found," says Jay W. Schmelter, RiverVest managing director and co-founder. "Our strategy is to focus on a few high potential investments, take an active role, sometimes as interim management, and leverage our research, clinical, operational and investment expertise to make them attractive for strategic buyers."

In its payout last month, RiverVest Venture Fund II delivered a return on investors' capital exceeding the most recent benchmarks reported by Cambridge Associates, LLC, a leading investment advisory firm. When compared with other healthcare venture capital funds started in 2006, RiverVest Venture Fund II's Distributions to Paid-In Capital (D/PI), a common industry metric, is 63%, while the industry median was 15% and maximum was 55% as of Sept. 30, 2011[i]. That means that the RiverVest Fund II has returned more capital to investors than any fund in Cambridge Associates' Sept. report.

"Many people say the life science venture model is broken," says Mark G. Heesen, president of the National Venture Capital Association. "RiverVest has just given us a powerful example of why it's not."

The four innovative companies RiverVest sold in 2011 and for which investors received payouts in 2012 are:

Minneapolis-based Lutonix, founded by RiverVest in 2007, has developed drug-coated balloons for the treatment of peripheral arterial disease. It was sold to C.R. Bard, Inc. for a purchase price of approximately $225 million, with an additional $100 million to be paid upon FDA approval. For investors of RiverVest's Fund II, which included Lutonix, this translated into a 4.7x return on the Fund's $5.6 million investment. If approved by the FDA, the return will bump up to about 8.0x return.

Also founded by RiverVest in 2007, and part of RiverVest's Fund II portfolio, biopharmaceutical company Excaliard Pharmaceuticals, Inc. focuses on developing novel drugs for the treatment of skin fibrosis, or scarring. It was purchased by Pfizer Inc. for an undisclosed amount.

RiverVest's Fund II invested three years ago in Mpex Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company developing a new cystic fibrosis drug.  It was purchased by Aptalis Pharma, a privately held, specialty global pharmaceutical company, for an undisclosed amount.

Founded by Schmelter, and included in RiverVest's Fund I, Salient Surgical Technologies, Inc. is a leader in the advanced energy category for haemostatic sealing of soft tissue and bone in a variety of surgical procedures. It was sold to Medtronic, Inc. for $525 million, delivering a return of 3.3x.

About RiverVest Venture Partners®

RiverVest Venture Partners is a venture capital firm focused on identifying and shaping early-stage life science companies throughout the U.S. to create significant shareholder value. With hands-on, high-level expertise and financial resources, RiverVest supports entrepreneurs by helping them achieve near-term objectives that position their companies for exit.

Since its inception in September 2000, RiverVest has raised two investment funds, with total committed capital of $164 million, and supported more than 25 innovative life science companies. For more information, please visit

Media Contact
Callaway Zuccarello
Callaway  & Company

[i], pp. 24-28 (Cambridge Associates' most recent Venture Capital Index, Sept. 30, 2011)

SOURCE RiverVest Venture Partners
Copyright©2010 PR Newswire.
All rights reserved

Related biology technology :

1. John McKearn, Ph.D., Promoted to Managing Director of RiverVest Venture Partners
2. Aegis Analytical Corp. Showcases Discoverant at Inaugural Venture Capital in the Rockies Fall
3. Tengion Featured as Model of Innovation and Success at 35th Anniversary Celebration of the National Venture Capital Association
4. Core Laboratories Joint Venture Agreement Between genae associates, VIBGYOR Scientific Research, Cardiovascular Center Aalst and J.B. Dahm
5. BIO Ventures for Global Health Receives $7 Million Grant from Gates Foundation to Engage Biotechnology in the Fight Against Neglected Diseases of the Developing World
6. Simbionix Raises Largest Amount in Companys History in Venture Capital to Accelerate Growth
7. Sensorin Raises Equity Financing to Launch Novel Industrial Sensing Venture
8. MedTechIQ Selects TheBrain to Visualize Expansive Biointellingence Database and Connect the Dots Between Life Sciences, Medicine and Venture Capital
9. Calvert Research and Auburn University Announce Joint Venture
10. Genomas to Present at Life Sciences & Healthcare Venture Summit
11. Universal Bioenergy, Inc. Seeks Algae Feedstock Companies for Acquisition, Alliance, and Joint Venture Opportunities for Biodiesel Production
Post Your Comments:
(Date:10/13/2015)... SUNNYVALE, Calif. , Oct. 13, 2015  Cepheid ... the quarter ending September 30, 2015. ... financial results, total revenue for the third quarter of ... net loss per share is expected to be approximately ... financial results, non-GAAP net loss per share for the ...
(Date:10/13/2015)... Research and Markets( ) has announced ... for Bone Morphogenetic Protein Growth Factor Therapy - 16 ... --> --> Bone morphogenetic proteins ... bone after a fracture. In nature, these proteins have ... of the skeleton. There are twenty different BMPs that ...
(Date:10/13/2015)... ... October 13, 2015 , ... AxioMx ... that it has received a Phase I Small Business Innovative Research (SBIR) grant ... of General Medical Sciences (NIGMS), will fund the development of a technique to ...
(Date:10/13/2015)... 13, 2015  According to Kalorama Information, the ... $102 billion by the end of 2015. Clinical ... industry, as it is estimated that approximately 80% ... tests. In addition to diagnosing patients, clinical lab ... progression, monitor drug treatment and conditions, and determine ...
Breaking Biology Technology:
(Date:9/29/2015)... 2015 News facts: ... saving energy , Minimized design shrinks PC footprint ... Mode and embedded Fujitsu PalmSecure authentication enable enterprises to ... today shows that good things come in small packages, ... its enterprise desktop and mobile portfolio. Featuring workplace design ...
(Date:9/28/2015)... 2015 CLEAR, the leading biometric ... traveler service is coming to Austin-Bergstrom International ... a frictionless experience, serious speed and enhanced ... offers our travelers an expedited security screening ... Jim Smith , Executive Director, Austin-Bergstrom International ...
(Date:9/28/2015)... 28, 2015 The global ... USD 12.03 billion by 2020, growing at a CAGR ... as Backside Illumination (BSI) technique to improve picture quality ... period.      (Logo: , ... to reduce loss and, thus, reduce the noise interference ...
Breaking Biology News(10 mins):