Safeguard Scientifics Leads $21M Round for Putney
Posted on: September 29th, 2011
NewSpring Health Capital Safeguard Scientifics
Specialty pharmaceutical company Putney has raised $21 million in new financing co-led by listed Safeguard Scientifics Inc. NewSpring Health Capital and other, undisclosed investors also contributed. Safeguard Scientifics put $10 million into the Series C round, which will be used to bolster sales and marketing. Portland, Maine-based Putney develops generic medicines for pets.
PRESS RELEASE
Safeguard Scientifics, Inc. (NYSE: SFE), a holding company that builds value in growth-stage life sciences and technology companies, today announced that it co-led a $21 million Series C financing for Putney, a Portland, ME-based specialty pharmaceutical company focused on providing high quality, cost-effective generic medicines for pets. Safeguard provided $10 million of financing; the additional capital was provided by NewSpring Health Capital and existing investors. Proceeds from the Series C will be used for product development and to enhance sales and marketing capabilities and additional operational and working capital needs.
"Putney has an experienced management team, a solid pipeline of new products, and a robust strategy in place to put generic drugs for companion animals in front of the FDA"
"In 2011, we have deployed $55 million in three new life sciences companies, including Putney, driving forward Safeguard's goal to selectively deploy capital in new and exciting growth companies," said Peter J. Boni, President and CEO of Safeguard Scientifics. "Putney has a strong management team, a sizeable addressable market, a solid business model to drive value, momentum, and moat, meaning a defensible position and barriers to entry-all 5M's of Safeguard's go-to-market strategy. Putney's pipeline of products offers a unique solution for the unmet need in the care of companion animals today."
According to the American Pet Products Manufacturers Association (APPMA), over 60 percent of U.S. households have at least one companion animal, which included more than 171 million cats and dogs in 2010. Americans spent $47.7 billion on their animal companions in 2010, approximately $12.8 billion of which was spent on veterinary care.
"Putney has an experienced management team, a solid pipeline of new products, and a robust strategy in place to put generic drugs for companion animals in front of the FDA," said James A. Datin, EVP and Managing Director of the Life Sciences Group at Safeguard Scientifics, who will be joining Putney's Board of Directors. "While human generics have had significant market penetration-78% of all human prescriptions are filled by a generic-most FDA-approved drugs for companion animals lack a generic equivalent. This results in pet owners paying out of pocket for branded-and often expensive-veterinary drugs. Putney has a significant opportunity to reach both veterinarians and pet owners with a convenient and less expensive option for pets. Putney is a great addition to Safeguard's life sciences group and we look forward to working with the management team and board of directors to build an industry leader in generics for pets."
Despite slow economic growth, the APPMA estimates that spending on companion animals will continue to grow, as companion animals today have longer life spans and often require more medical treatments using more drug products. The total global market for companion animal pharmaceuticals is estimated to be $5.6 billion. Today, many pharmaceuticals approved by the FDA for companion animals have expired patents, but are sold as brand-name medications with no generic competition. Trone, Inc. reported that one-third of pet owners decreased visits to veterinary hospitals in 2010 because of poor economic conditions, while 45 percent postponed care, according to the National Commission on Veterinary Economic Issues (NCVEI).
"Pets are part of our families, yet there is a significant unmet need when it comes to their care," says Jean Hoffman, Founder, President and CEO of Putney. "At Putney, we're working to empower both veterinarians and pet owners with appropriate choices that allow them to pursue the best course of treatment, resulting in more satisfied pet owners and happier pets. This financing round provides Putney with the capital we need to hire additional management talent, ramp up our product acquisition and licensing program, and transform Putney into a stronger R&D and commercial organization. In addition, Safeguard's network of industry contacts and financial and operational expertise will help drive Putney's vision forward to become the leading provider of high quality, bioequivalent and specialty drugs supporting the U.S. veterinary community."
About Safeguard Scientifics
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. (NYSE: SFE) provides growth capital for entrepreneurial and innovative life sciences and technology companies. Safeguard targets life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices, Regenerative Medicine, Specialty Pharmaceuticals and selected healthcare services, and technology companies in Internet / New Media, Financial Services IT, Healthcare IT and selected business services with capital requirements of up to $25 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For more information, please visit our website at www.safeguard.com, our blog at blog.safeguard.com or you can follow us on Twitter at twitter.safeguard.com or on LinkedIn at linked.safeguard.com.
About Putney
Putney is a pharmaceutical company committed to providing high quality, cost-effective generic medicines for pets. Putney's reliable supply of affordable drug options empowers veterinarians, allowing them to provide the best possible medicine at the best possible price, and supports pet owners, helping them afford to comply with veterinary recommendations. Putney's ongoing investment in research and development is focused on creating the next generation of generic veterinary products based on inputs from companion animal veterinarians and its industry partners.
HARBIN, China, Sept. 28, 2011 /PRNewswire-Asia-FirstCall/ - China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading players engaged in the development, manufacture, and sales of modified plastics primarily for automotive applications, today announced the successful closing of the previously announced $100 million investment by Morgan StanleyPrivate Equity Asia ("MSPEA"), one of the leading private equity investors in Asia, in the Company.
Under the terms of the transaction, MSPEA has purchased redeemable convertible preferred shares of the Company that are convertible into common stock at an initial conversion price of US$6.25 per share, subject to customary anti-dilution adjustments. Holders of the redeemable convertible preferred shares will participate in common stock dividends on an as-converted basis.
The Company also announced that two members of MSPEA, Ed Huang, Managing Director, and Jun Xu, Executive Director, have been appointed to serve on the Company's Board of Directors (the "Board"), increasing the number of directors constituting the Board from seven to nine. Six of the nine directors are considered independent for the Board under the rules of the Securities and Exchange Commission and the Nasdaq Stock Market.
"We are very pleased to have completed this transaction with MSPEA and to have such a highly respected long-term partner supporting us as we pursue our strategic and financial goals," said Mr. Jie Han, Chairman and CEO of China XD Plastics. "We look forward to working closely with MSPEA to further strengthen our position as an industry leader and deliver value for our shareholders."
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned subsidiary, Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and sells modified plastics, primarily for automotive applications. The Company's products are used in the exterior and interior trim and in the functional components of more than 70 automobile brands manufactured in China, including AUDI, BMW, Toyota, Buick, Mazda, VW Golf, Jetta, and Hafei new energy vehicles. The Company's wholly-owned research center is dedicated to the research and development of modified plastics, and benefits from its cooperation with well-known scientists from prestigious universities in China. As of June 30, 2011, 193 of Xinda's products have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the Company's business and operations; the Company's ability to successfully expand its production capacity; the future trading of the common stock of the Company; the Company's ability to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.