Thursday, September 18, 2008

Local VC-backed Prestwick Pharma sold to Biovail

By Mass High Tech Staff

Biotech firm Prestwick Pharmaceuticals Inc., which had raised its $120 million in funding partly from local venture capital firms Atlas Venture and Pequot Ventures, is being bought by Canadian pharmaceutical company Biovail Corp. for $100 million in cash.

Under terms of the deal, Biovail will acquire 100 percent of Prestwick and its licensing rights, as well as rights to Prestwick’s early-stage products for Huntington’s Disease, Parkinson’s Disease and schizophrenia.

Privately held Prestwick Pharmaceuticals, located in Washington, D.C., develops treatment for disorders affecting the central nervous system. Its Xenazine product, approved by the U.S. Food and Drug Administration for Huntington’s Disease-associated symptoms, is exclusively licensed to Ovation Pharmaceuticals Inc.

Since 2002, Prestwick reports it had raised up to $120 million in funding from Atlas Venture, Pequot Ventures, Scale Venture Partners, Sofinnova Ventures and Warburg Pincus.

Waltham-based Atlas Venture invests predominantly in early-stage technology and life sciences companies in the U.S. and Europe. During 2007, Atlas topped the list of the most active investors in New England, according to Dow Jones VentureSource. Among the company’s investments are Boston-based pharmaceutical company Zafgen Inc., Cambridge biotech Stromedix Inc. and Burlington security testing company Veracode Inc.

Pequot Ventures, which maintains an office Westport, Conn., manages about $5.3 billion in investments. Pequot has helped fund such local companies as information technology solutions provider MTM Technologies Inc., software company Aveska Inc. and software firm Reflexis Systems Inc.