$55M for Boston-Power, Sequenom Plows Ahead with Exact Sciences Takeover Attempt, Nuance Announces $175M Stock Sale, & More Boston-Area Deals News

1/16/09

Everything else around here is frozen solid this week (hello, minus two degrees real-feel!), but the tech and life sciences deals are flowing.

—Two Massachusetts firms—Alnylam Pharmaceuticals (NASDAQ: ALNY) of Cambridge and Cubist Pharmaceuticals (NASDAQ: CBST) of Lexington—inked a marketing deal focused on Alnylam’s RNAi-based treatment for respiratory syncytial virus, or RSV. Under the terms of the deal, Cubist will pay Alnylam $20 million upfront, with an additional $82.5 million in future milestone-based payments on the table as well.

—Newton, MA-bases student-loan-search toolmaker SimpleTuition reportedly closed a $6 million Series C funding round from Atlas Venture, Flybridge Capital Partners, and North Hill Ventures, among others.

—Software maker StreamBase Systems of Lexington, MA, reportedly raised $6.24 million in a Series D funding round from return investors Accel Partners, Bessemer Venture Partners, Highland Capital Partners, and In-Q-Tel.

—Cancer drug developer Kolltan Pharmaceuticals of New Haven, CT—a spinoff of Yale University Medical School—closed a Series A round worth an impressive $35 million.

—Another cancer drug company, Cambridge, MA-based Forma Therapeutics, inked a license and option agreement with Novartis potentially worth more than $200 million.

—Woburn, MA-based Kiva Systems gained an important new customer—Gap Inc. Direct, which handles online orders for clothing chains Gap, Banana Republic, Old Navy, and Piperlime—for its system of robotic warehouse workers.

—Software maker WebLayers of Cambridge, MA, announced it had raised $3 million in an equity financing from Ascent Venture Partners, Cedar Fund, and Veritas Venture Partners.

—Boston-based Ze-gen raised $20 million in a Series B round of financing led by new investor Waroz Holding Company and joined by return backers Flagship Ventures, VantagePoint Venture Partners, and Massachusetts Technology Development Corporation. Ze-gen will used the funds to try to commercialize its system for converting solid waste into gas for power plants.

—Waltham, MA-based Kepha Partners reportedly closed its first fund with $100 million. The firm, which was founded by former Highland Capital partner Jo Tango, already has investments in AutoVirt, Azuki Systems, and Byledge.

—After its antibiotic oritavancin was sent back for further clinical testing by the FDA, Cambridge, MA-based Targanta Therapeutics (NASDAQ:TARG) agreed to be acquired by The Medicines Company (NASDAQ:MDCO) for $42 million in cash, plus additional cash payments for reaching regulatory and sales milestones.

—Business intelligence software maker InforSense of Cambridge, MA, and London, England, raised $5 million in financing from its existing investors, including Elaia Partners, Fleming Family and Partners, Imperial Innovations, NPI Ventures, and Sitka Health Fund.

—Boston-Power of Westborough, MA, got a $55 million jolt to help ratchet up production of its longer-lasting lithium-ion batteries for laptops and break into the market for batteries from e-bikes and hybrid and electric vehicles. New investor Foundation Asset Management, of Stockholm, Sweden, led the Series D round, and Oak Investment Partners, Venrock, GGV Capital, and Gabriel Venture Partners returned for the deal.

—San Diego’s Sequenom (NASDAQ:SQNM) announced it intends to forge ahead with its plans to acquire Marlborough, MA-based cancer test maker Exact Sciences (NASDAQ:EXAS) despite a vote against the deal by Exact’s board of directors. Sequenom wants to buy each Exact share for $1.50 worth of Sequenom common stock, for a total value of $41 million.

—Westwood, MA-based FirstDocs, a maker of software for managing legal documents, reportedly raised $3 million in Series A funding from Boulder, CO-based Foundry Group.

—The Burlington, MA-based speech and imaging technology company Nuance Communications (NASDAQ: NUAN) said it will sell $175 million worth of common stock to private equity powerhouse Warburg Pincus, which will also get a warrant to purchase approximately another 3.9 million shares.

—Cambridge, MA-based Peptimmune granted drug giant Novartis (NYSE: NVS) an option on rights to its experimental multiple sclerosis drug PI-2301. If Novartis exercises the option and development, regulatory, and commercial milestones are met, Peptimmune could get more than $500 million out of the deal.

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