Apax Backs US Genomics And Diagnostics Groups

Apax Partners & Co Ventures announced two fundings for US-based companies early this summer. The London-based group co-led a $31.8 million (ecu 28.7 million) private placement for Lexicon Genetics Incorporated of Woodlands, Texas, and participated in an $18 million (ecu 16.3 million) mezzanine round for Accumetrics Inc. of San Diego.

The placement for Lexicon, managed by Punk Ziegel & Co., took the form of Series A convertible preferred stock. New investors included Apax Partners, Patricof & Co, SOFINOV, Bay City Capital, Walden Group, GeneChem, SR One and WPG-Farber Present Fund. They joined existing stockholders such as Cain Interests and BCM Technologies.

Lexicon is a pioneer in the design and development of high-throughput mutagenesis technologies for studying functional genomics in mammalian systems.

The funding will be used to accelerate the production of Lexicon’s library of “knockout” mouse clones covering the mouse genome. Knockout mice – i.e., animals with specific gene alterations – have proved to be one of the most powerful research resources available for determining the role of specific genes in physiology and disease and in the validation of drug targets.

Lexicon has invented a novel method of mass producing mutant mouse clones using automated procedures and proprietary gene trap vectors. The resultant OmniBank library and database of mouse embryonic stem (ES) cell clones already contains more than 20,000 ES cell clones, each ES cell clone containing a gene trap mutation that derives from the genes that are mutated, identified by OmniBank Sequence Tags.

OmniBank is forecast to expand to include 500,000 clones within three years, representing virtually all genes in the mammalian genome.

Lexicon, which was founded in 1995 and is privately held, makes the OmniBank library available on a non-exclusive basis to subscribers. To date, the company has established collaborative agreements with the Merck Genome Research Institute and ZymoGenetics.

The mezzanine funding raised by Accumetrics was the third round of financing raised by the cardiovascular diagnostics specialist since its formation in April 1996.

Accumetrics focuses on the design, development, manufacture and marketing of innovative point-of-care assays for the cardiovascular market. Its first product, the Ultegra System, is the first assay to provide medical professionals with accurate, easy to use and cost-effective measurement of platelet function.

The Ultegra product is due to be launched later this year.

Besides Medicus Venture Partners and Kleiner Perkins Caufield & Byers, both of which backed Accumetrics as a start-up, participants in the funding included Apax Partners & Co Ventures, Patricof & Co Ventures, Johnson & Johnson Development Corporation, Centocor Inc, Alberville Investments, Techno-Venture Co and SAC Capital. Hamilton Capital acted as placement agent for a portion of the financing.

Commenting on the fund raising, Accumetrics’ president and CEO Terry L Johnson said “We felt it was important that our mezzanine round broaden our investor base to include European, Pacific Rim and corporate investors. I believe the response to this financing recognises not only the quality of our organisation but also the importance of the market that our products will serve”.