The Venture Codex

Participated · Equity · Mar 2017

Vertiflex manufactures the Superion Indirect Decompression System, a minimally invasive spinal implant designed to treat moderate lumbar spinal stenosis. The implant is intended to reduce pressure on affected nerves and allow patients to return to a more active lifestyle, and is placed through a small tube without deconstructing anatomical elements. Superion received FDA Premarket Approval following a 391-patient randomized controlled trial and is supported by five-year durability data; it is described by an AMA CPT Category I code and has broad reimbursement. The company plans to use recent financing proceeds primarily to fund U.S. commercial expansion of Superion. Vertiflex has expanded its commercial infrastructure, relocating its headquarters to a larger facility in Carlsbad, CA, which includes expanded distribution capability and a physician education center. The privately held company, founded in 2005, says it has compiled the largest, most rigorous body of device clinical evidence related to lumbar spinal stenosis. VertiFlex develops percutaneous, motion-preserving spinal implants, with the Superion Interspinous Spacer (ISS) as its flagship product. Superion is a minimally invasive, fully percutaneous implant that can be delivered on an outpatient basis under local anesthesia and has been implanted in over 1,500 patients worldwide. The device received CE mark in 2007 and is currently the subject of a pivotal IDE trial in the U.S. studying safety and efficacy versus Medtronic’s X-STOP IPD at 30 sites. VertiFlex reports the Superion IDE trial is ahead of plan and has surpassed 275 patient enrollments; the company plans to complete enrollment before the end of 2011. The company was founded in 2005 and is headquartered in San Clemente, California. Raised capital will be used to finish IDE enrollment and to advance global market development of the technology.

Participated · Series E · Aug 2016

Torax Medical develops and markets products designed to treat sphincter disorders using its Magnetic Sphincter Augmentation (MSA) technology platform. It currently markets the LINX Reflux Management System for gastroesophageal reflux disease (GERD) and the FENIX Continence Restoration System for fecal incontinence in the U.S. and Europe. Led by President and CEO Todd Berg and newly appointed Chief Commercial Officer Chas McKhann, the company focuses on chronic diseases related to weak sphincter muscles. Torax completed a $25M Series E financing to support commercial scaling of its product platform. The company is based in St. Paul, Minn. Torax Medical develops and markets Magnetic Sphincter Augmentation (MSA) implants composed of interlinked titanium beads with magnetic cores to augment defective sphincter muscles. Its lead product, the LINX Reflux Management System for GERD, was approved by the US FDA in March following a unanimous FDA advisory panel recommendation. LINX is marketed in the USA and Europe; the company’s FENIX Continence Restoration System for fecal incontinence is marketed in Europe. Devices are implanted via standard minimally invasive laparoscopic or surgical procedures. The company is headquartered in St. Paul, Minnesota and is privately held. Proceeds from the recent financing will be used to expand commercialization efforts for its family of sphincter augmentation products. Torax Medical won CE Mark approval in the European Union for its Linx implantable device to treat gastro‑esophageal reflux disease. The Linx is a ring of interlinked miniature titanium beads with magnetic cores placed around the esophagus to help the sphincter prevent reflux; the beads separate momentarily to allow swallowing. The device has been implanted in more than 150 patients in the U.S. and Europe in clinical trials. It has not yet been cleared for sale in the U.S.; Torax completed patient enrollment in a pivotal clinical trial in September and could seek FDA approval by the end of the year if the trial goes well. The company has raised $31.5M in equity to date, including an $18M Series C (with $3M from Kaiser Permanente Ventures) and earlier Series B and A financings. Torax was founded in 2002, has about 20 employees, and is led by co‑founder and CEO Todd Berg, formerly of St. Jude Medical.

Participated · Series F · Oct 2014

Invitae is a San Francisco-based genetic information company whose mission is to bring genetic information into routine medical practice to improve the quality of healthcare. It specializes in genetic diagnostics for hereditary disorders and provides a single diagnostic test comprising over 200 genes for a variety of conditions across cancer, cardiology, neurology and pediatrics. The company aims to aggregate the world’s genetic tests into a single service with better quality, faster turnaround time, and lower price than many single-gene diagnostic tests. Invitae completed a $120 million Series F financing and said it will use the proceeds to accelerate the build-out of its infrastructure for its genetic information business and to expand its global presence. J.P. Morgan Securities LLC acted as sole placement agent on the financing. New investors in the round included The Broe Group, Decheng Capital, Deerfield Management LLC, OrbiMed, Perceptive Advisors, Rock Springs Capital and Wellington Management Company, among others, with existing investors such as Casdin Capital and Genomic Health participating. The company has raised $207 million in total to date. Invitae develops clinical genetic tests for hereditary disorders across oncology, cardiology, neurology and pediatric medicine. The company is pursuing a strategy to aggregate all known medical genetic tests (over 3,000 Mendelian conditions) into a single, lower-cost assay. Invitae says it aims to make multi-use genetic testing more accessible and affordable and to transition from an era of genetic scarcity to genetic abundance. The company plans to expand its offering of genetic tests, build commercial capabilities, and enter international markets. Invitae completed a $40 million Series E to accelerate development of its clinical tests and support international expansion. To date it has raised $87 million from investors including Thomas McNerney & Partners, Genomic Health, Genesys Capital, Casdin Capital, Redmile Group and Randy Scott.

Participated · Series C · Sep 2014

SGB is a San Diego-based agricultural biotechnology and seed company that develops Jatropha hybrids to produce sustainable plant oil, protein and biomass. Its latest generation of Jatropha hybrids has reduced time to maturity from five years to one to two years. The company intends to use the funds to drive commercial partnerships and project deployments in Central America, India and Southeast Asia. It also plans to further advance genetic improvement and agronomic best practices to maximize the crop's potential. In conjunction with the financing, Arama Kukutai joined the board as executive chairman and Miguel Motta as president and chief operating officer; Kirk Haney stepped down as CEO but remains a director. SG Biofuels is a San Diego-based bioenergy crop company developing elite hybrid seeds of Jatropha as a low-cost feedstock for biodiesel, bio jet fuel and specialty chemicals. Jatropha is a subtropical, non-edible energy crop that can be grown on marginal lands considered undesirable for food crops. SG Biofuels uses molecular breeding and biotechnology to improve yields and reduce input costs and has developed proprietary hybrid seed production technology enabling large-scale deployments of higher-yielding, uniform planting material adapted to different growing conditions. The company has signed agreements with Bharat Renewable Energy Limited (BREL) and JETBIO to deploy Jatropha in Brazil for production of bio jet fuel. SG Biofuels plans to use new capital to expand research and development, advance commercialization and scale global operations, and the company is hiring. The company is led by President & Chief Executive Officer Kirk Haney. SG Biofuels is a San Diego-based company that catalogs, develops and produces seeds for jatropha, a drought-resistant plant used to make biodiesel, jet fuel, soaps, organic fertilizers, medicines and pesticides. The company operates a crop improvement platform that it says has doubled jatropha yield and reduced input costs for growers. Two United Nations agencies reported that jatropha seeds can be processed into lower-polluting biodiesel and that seed cake can be used as fertilizer and animal feed after detoxification. Jatropha is regarded by some environmentalists as a favorable non-food biofuel source, but the crop has generated controversy: reporting cited in the article notes jatropha plantations displaced food crops in the Philippines and that forestry groups in India drained rice fields and reclassified public land to cultivate jatropha. SG Biofuels recently raised financing that is part of its current financial position and development efforts.

Participated · Series E · Jan 2014

Auspex Pharmaceuticals is a clinical-stage biopharmaceutical company based in La Jolla, CA, focused on developing and commercializing novel medicines for the treatment of orphan diseases. Its pipeline includes product candidates addressing hyperkinetic movement disorders such as chorea associated with Huntington’s disease, tardive dyskinesia and Tourette syndrome, as well as other orphan indications. The company’s lead program, SD-809, is in Phase 3 clinical development for the treatment of chorea associated with Huntington’s disease. Auspex is led by President and CEO Pratik Shah, Ph.D. The company completed two separate financings totaling $35M and will use the funds to advance SD-809. Gerald Proehl joined the company’s Board of Directors, replacing David Collier. Auspex Pharmaceuticals, founded in 2001 and based in San Diego, is a clinical-stage biotechnology company led by executive chairman Pratik Shah. Its core platform integrates deuterium, a non-radioactive isotope of hydrogen, into previously approved drugs to increase half-life and potentially reduce dosage. The company’s lead compound, SD-809, is a deuterium-substituted analogue of tetrabenazine aimed at treating hyperkinetic movement disorders such as Huntington’s disease. Auspex is preparing to enter Phase 3 clinical trials for SD-809. To supplement working capital during this transition, the company received an undisclosed term loan from Square 1 Bank. Auspex Pharmaceuticals is a privately held biopharmaceutical company in La Jolla that pioneers the use of deuterium in medicinal chemistry. Its lead compound, SD-809, is a novel VMAT‑2 inhibitor being developed for hyperkinetic movement disorders including Huntington’s disease, Tourette syndrome and tardive dyskinesia. The company says SD-809 may offer improved safety, reduced drug–drug interactions, and less frequent dosing versus existing therapies. Auspex is advancing a portfolio that also includes SD-900 (a JAK kinase inhibitor for autoimmune diseases) and SD-560 (for fibrotic diseases). The new financing is intended to advance the development of these molecules and accelerate SD-809’s clinical program. Management expects SD-809’s Phase 3 development to begin in the first half of 2013.