See-saw year ends with Biolex $60M richer - Triangle Business Journal:

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The biotech company in February 2008 was forcec to pull a planned initial public offerinv because of poormarket Disappointed? Yes. But by the end of the year the companh had reversed course andgathered $60 million from venturd capital investors – “a great accomplishment for the says CEO Jan Turek. “It’s a real testimong to the company’s platform he says. Claris Ventures and OrbiMed Advisore joinedthe company’s team of investors, which includes Durham-basex .
In all, Bioles now has raised about $150 Turek says the fundraiser took about six monthss to complete and did not face anyparticular “It was important for us to providw the adequate amount of cash,” says “In many ways, it’s a substitutee for the IPO.” Biolex deployed about $11 million from the fundraiser to buy out partner OctoPlus’ 50 percenr share of the commercial rights to Biolex’s most advanced drug. As part of the deal, Biole x will pay OctoPlus up to $138 millionj for additional development andsales milestones. “We felt that we wantede to take full responsibilityfor Locteron’s says Turek.
Biolex is developinyg drugs based on its ability to produce biologicalp treatments in theLemna plant, which is commonl known as duckweed and can be found floatingt on ponds. Locteron, which treatws hepatitis C, a blood disorder, is currently beingv tested in a third phase II human Turek says the drug met its goals in a firsy trial and that results of the seconrd are currentlybeing analyzed. Following the current Biolex will scout for a commercial partnedr to take the drug into phase III Turek says Locteron could be on the market by 2013.
Biolex’s giant fundraiser came even as startupw faced a tough environment for new In 2008, venture capital investmente nationwide declined 8 percent, to $28.3 billion, according to the . A $60 millioj fundraiser shows “that people think this is going to be asuccessfuo venture,” says Jim Ford, chief operatiny officer of the . “Youu have to have a lot of things goingfor you. People are willing to fund good good business plans and wheree they can seethat you’re creating a product or service that is goin g to make it in this environment.” Bioles currently employs about 70 people. Turej says his firm, like most other is carefully watchingits expenses.
“We have to be much more frugapl in how we spendour hard-earned money,” he