Wednesday, March 4, 2009

Conn. agency delivers $500K to AIDS, genetic disease therapy firm

By Mass High Tech staff

Connecticut Innovations, a quasi-public authority responsible for technology investing in Connecticut, has directed a $515,000 investment from its Eli Whitney Fund to New Haven’s Helix Therapeutics LLC.

CI’s investment is part of a $965,000 funding round for Helix, which develops therapies for HIV/AIDs and genetic diseases. LaunchCapital also participated in the investment, in addition to Webster Bank’s extension of a capital line of credit.

Helix previously received funding from CI through its Pre-Seed Support Services Program. CI officials report that it is the first company to follow its CI seed funding by qualifying for the Eli Whitney Fund. As part of the investment, Russell Tweeddale, CI managing director, will join the Helix board of directors. 

Therapies developed by Helix aim to treat HIV and AIDs, as well as sickle cell anemia, B-Thalassemia and Gaucher’s Disease, through the company’s targeted gene modification. The technology originated from research work conducted at the Yale University School of Medicine.

According to a report from CI, fiscal 2008 saw CI funding 19 companies, a 73 percent increase over fiscal 2007. Of the 19, 10 companies were new to the portfolio, the report stated. Investments, which are intended to support growth in Connecticut’s tech economy, totaled $11.5 million.