When J&J offered to sell its Ionsys pain-relief patch at a fire-sale price last year, Cadence Pharmaceuticals' management team saw a diamond in the rough. But the specialty pharma didn't have the cash or the focus to take on a new project. Enter Frazier Healthcare Ventures, which organized an investor syndicate that teamed with Cadence management on a deal with enough moving parts to make Rube Goldberg proud. The arrangement birthed Incline Therapeutics Inc., an independent, privately held start-up backed by $43.5 million in venture money.
Cadence, VCs Relieve J&J's Pain, Map Out A Clever Exit In The Process
Article preview from Start Up - July, 2010
When Johnson & Johnson offered to sell its Ionsys pain-relief patch at a fire-sale price last year, Cadence Pharmaceuticals Inc.'s management team saw a diamond in the rough. [201020298] But the specialty pharma didn't have the cash or the focus to take on a new project, even if getting it back on the market only required a quick fix.
J&J's Alza Corp. subsidiary briefly marketed Ionsys, which delivers the opiate drug fentanyl iontophoretically – through the skin using an electric charge rather than a needle – but recalled the product in 2008 due to potential electronic failure and overdose concerns. With a little re-engineering, Cadence's team thought they could bring Ionsys back to market to treat acute post-operative pain.
But Cadence had plenty on its plate, with an injectable acetaminophen drug candidate in late trials. Instead, one of its shareholders, Frazier Healthcare Ventures, organized an investor syndicate that teamed with Cadence management on a deal with enough moving parts to make Rube Goldberg proud. The arrangement birthed Incline Therapeutics Inc., an independent, privately held start-up backed by $43.5 million in venture money. [201030292]
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Companies mentioned in this article:Companies mentioned in this article:
Johnson & Johnson
Cadence Pharmaceuticals Inc.
Alza Corp.
Incline Therapeutics Inc.,
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