Midwest Health Care Startups Raise $324 Million in Q1 2007

CLEVELAND, April 24, 2007 – Midwest health care startups reported a staggering $324 million in total investments across 43 companies in the first quarter of 2007, according to the BioEnterprise’s Midwest Health Care Venture Investment Report. The numbers more than double similar figures from the first quarter of 2006, a significant jump that reflects the Midwest’s growing popularity with health care venture investors and substantially greater than the national jump of 65 percent in health care investments.


“The first quarter of 2007 has increased the trajectory of the already record-breaking 2006 in the Midwest,” said Baiju R. Shah, President of BioEnterprise. “More stunning than the total dollars doubling last year’s mark is that the number of transactions nearly doubled last year’s pace. That is the true bellwether for increased venture activity and the mark that demonstrates strong and continuing growth in future years.”


Indiana led the way, attracting $94.5 million to four health care ventures in the state, including Targanta Therapeutics’ $70 million financing. Ohio finished second with 15 ventures raising $93.9 million.  .


The report aggregates venture investment in 10 Midwest states and Western Pennsylvania. Following the leaders are Illinois ($42.5 million), Minnesota ($39.92 million), Missouri ($16.8 million), and Wisconsin ($16.11 million). Other states with one deal reported included Kentucky ($5 million) and Michigan ($3.25 million). In addition, Western Pennsylvania companies attracted $12.2 million in financing.


 


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By sector, the equity funding was as follows:


·         Biopharmaceutical companies: $230 million


·         Medical device companies: $46 million


·         Health care software and service companies: $48 million


 


The Midwest Health Care Venture Investment Report includes all reported numbers. For complete state and region results across the Midwest, see the attached table.


To view additional data about Midwest health care business activity visit http://www.bioenterprise.com/reports/index.html.


 


Table: Midwest Health Care Venture Investment (By State)


 












































































































State


Q1 2007


 


Q1 2006


 


$ Millions


# of Cos.


 


$ Millions


# of Cos.


Illinois


42.50


2


 


25.70


4


Indiana


94.50


4


 


6.00


1


Iowa



0


 



0


Kansas



0


 



0


Kentucky


5.00


1


 


0.50


1


Michigan


3.25


1


 



0


Minnesota


39.92


6


 


23.60


4


Missouri


16.80


3


 


26.70


4


Ohio


93.90


15


 


22.00


5


Western Pennsylvania


12.23


4


 


20.10


2


West Virginia



0


 



0


Wisconsin


16.11


7


 


3.10


2


Total


324.01


43


 


127.70


23


 


 


 


 


 


 


 


 


 


 


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Table:  Midwest Health Care Venture Investment (By Region)


 
















































































Region


Q1 2007


 


$ Millions


# of Cos.


Chicago


42.50


2


Indianapolis


79.50


3


West Lafayette (IN)


15.00


1


Lexington, KY




Louisville, KY


5.00


1


Detroit-Ann Arbor


3.25


1


SW Michigan




Minneapolis-St. Paul


39.92


6


St. Louis


16.80


3


Kansas City




Cincinnati




Cleveland


83.50


12


Columbus


10.38


3


Pittsburgh


12.23


4


West Virginia




Wisconsin


16.11


7


Total


324.01


43


 


Sources: Compiled by BioEnterprise team from Venture Wire, Private Equity Week, Wall Street Journal, Venture Source, SEC Filings, company press releases, www.biospace.com, and Midwest bioscience organizations and institutions.


 


About BioEnterprise


 


BioEnterprise is a business formation, recruitment, and acceleration effort designed to support the growth of bioscience companies. Located in Cleveland, BioEnterprise provides management counsel and support services to health care companies. BioEnterprises partners are Case Western Reserve University, Cleveland Clinic, University Hospitals, and Summa Health System. Additional technology partners include the NASA Glenn Research Center, Cleveland State University, NorTech, and Omeris.


 


The initiative comprises the collective activities of BioEnterprise and its partners’ commercialization offices:  the Case Office of Technology Transfer, Cleveland Clinic Innovations, University Hospitals Case Medical Center – Center for Clinical Research and Summa Enterprise Group.  The combined efforts of these groups has created, recruited, and accelerated more than 50 companies in four years.