Healthcare Industry News: Diabetic Foot Ulcer
News Release - January 29, 2009
Safeguard Scientifics Joins $10.4 Million Financing of Garnet BiotherapeuticsInvestment represents Safeguards commitment to regenerative medicine and life sciences companies within the Greater Philadelphia area by providing equity to support Phase II clinical trials
Wayne, PA, January 29, 2009 – (HSMN NewsFeed) - Safeguard Scientifics, Inc. (NYSE: SFE) today announced its participation in a $10.4 million financing round for Garnet Biotherapeutics, a clinical stage regenerative medicine company targeting the acceleration of healing and reduced scarring associated with surgical procedures and other dermatologic conditions. Garnet Biotherapeutics will use the financing to support research and Phase II clinical trials for its proprietary human adult bone marrow-derived cells, along with manufacturing and development.
In addition to Safeguard Scientifics, other investors include Alliance Technology Ventures and SCP Vitalife Partners, which led the round.
“Safeguard Scientifics invests in companies that have differentiated products, strong management and a solid trajectory towards commercialization,” says Peter J. Boni, President and CEO of Safeguard. “Garnet Biotherapeutics reflects one of Safeguard’s strategic objectives to partner with growth-stage life sciences companies developing regenerative and personalized medical technologies that serve significant unmet medical needs. We continue to identify exciting partnering opportunities and welcome Garnet Biotherapeutics to the Safeguard team.”
Garnet Biotherapeutics has identified a distinct population of bone marrow derived cells capable of reducing inflammation and promoting healing. In addition, the company has developed proprietary scalable cell expansion technology that can generate a large number of patient doses from a single source. The company is initially developing its cell-based therapy for cosmetic and dermatologic applications where accelerated healing and reduced scarring are desirable. Cosmetic applications – such as liposuction, breast augmentation, abdominoplasty and facelifts – represent an addressable market opportunity of more than $1 billion worldwide. Plastic surgeons often cite scarring as a top patient concern in cosmetic surgical procedures. Garnet Biotherapeutics believes that the cell-based therapy may also be applicable in burns, auto-immune disorders such as psoriasis, and in other conditions where inflammation or scar formation plays an important role in disease pathology.
“Our investment in Garnet Biotherapeutics comes on the heels of Safeguard's partnership with two leaders in regenerative medicine – Advanced BioHealing, focused on cell-based and tissue-engineered FDA-approved products, such as Dermagraft® for the treatment of Diabetic Foot Ulcers; and Tengion, a clinical stage regenerative medicine company focused on the development of neo-organs and neo-tissues, such as Neo-Bladder Augment,” comments Gary J. Kurtzman, MD, Vice President and Managing Director in Safeguard’s Life Sciences Group. “We feel that these three strong companies represent Safeguard’s commitment to leadership and diversification in a field which is already yielding the next generation of significant and differentiated medical products.”
“Safeguard has a track record of successful partnerships within life sciences, and the necessary expertise to further the development of emerging regenerative medicine technologies,” says Gerri Henwood, CEO of Garnet Biotherapeutics. “Safeguard’s unique focus positions Garnet Biotherapeutics on a solid trajectory towards commercialization. We welcome our new investors to our team and look forward to Phase II clinical trial results with their support.”
With this investment, Dr. Kurtzman, Jim P. O'Connell, Senior Associate and Kauffman Fellow in Safeguard’s Life Sciences Group and Wayne B. Weisman, a Partner at SCP Vitalife Partners, will join Gerri Henwood on Garnet Biotherapeutics’ Board of Directors.
About Garnet Biotherapeutics
Garnet Biotherapeutics is a clinical stage regenerative medicine company based in Malvern, PA. The company has identified a distinct population of bone marrow derived cells and developed proprietary technology to expand these cells for use in applications requiring large number of patient doses. When used topically on the skin or administered internally, these cells release anti-inflammatory and pro-healing factors that accelerate healing and reduce scarring. The company is currently targeting dermatology applications, with plans to expand into other cosmetic procedures as well as looking at ways to advance the technology for use in orthopedic and cardiovascular surgical procedures, burn treatment, chronic would healing and auto-immune disorders.
About Safeguard Scientifics
Founded in 1953 and based in Wayne, PA, Safeguard Scientifics, Inc. (NYSE: SFE) provides growth capital for entrepreneurial and innovative technology and life sciences companies. Safeguard targets technology companies in Software as a Service (SaaS) / Internet-based Businesses, Technology-Enabled Services and Vertical Software Solutions, and life sciences companies in Molecular and Point-of-Care Diagnostics, Medical Devices and Specialty Pharmaceuticals with capital requirements between $5 and $50 million. Safeguard participates in expansion financings, corporate spin-outs, management buyouts, recapitalizations, industry consolidations and early-stage financings. For additional information and updates about Safeguard Scientifics, please visit www.safeguard.com.
Except for the historical information and discussions contained herein, statements contained in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are subject to risks and uncertainties. Risks and uncertainties that could cause actual results to differ materially, include, among others, managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, the ability to execute our strategy, the uncertainty of the future performance of our companies, acquisitions and dispositions of companies, the inability to manage growth, compliance with government regulations and legal liabilities, additional financing requirements, the effect of economic conditions in the business sectors in which our companies operate, and other uncertainties described in the Company’s filings with the Securities and Exchange Commission. Many of these factors are beyond our ability to predict or control. In addition, as a result of these and other factors, our past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information contained in this press release.
Source: Safeguard Scientifics
Issuer of this News Release is solely responsible for its
Please address inquiries directly to the issuing company.