InDevR spins off company, raises capital
Last Updated: 16:06 January 15, 2013
ViroCyt has raised $3 million to expand the commercial market for the virus-counter technology, said Robert Kline, the Denver company's president and chief executive. InDevR is a shareholder in the new company, Kline said. The virus-counter technology already is being used by vaccine companies such as GlaxoSmithKline plc (NYSE: GSK), based in the United Kingdom, as well as biotechnology companies and research institutes and universities, ViroCyt said in a press statement.
ViroCyt's funding comes from venture capital company High Country Venture in Boulder and angel investors recruited by Kline and Kathy Rowlen, chief executive and co-founder of InDevR, Kline said. ViroCyt bought the intellectual property for the virus-counter technology from InDevR for an undisclosed sum, he said.
"This is a very compelling story. It's a very unique technology that has already been developed and on the market. It just needs growth capital to expand and reach its full potential," Kline said.
ViroCyt currently has five employees working at a Denver office near U.S. Highway 36 and Interstate 25. An additional five to 10 salespeople will be hired locally and around the United States to market the product as the company grows, Kline said.
For its part, InDevR will continue its focus on creating new products that can help make vaccines better and more affordable, Rowlen said. The company plans to announce other research breakthroughs in the next few years, she said. Rowlen has raised more than $13 million in funding, and has partnered with GE Global Research, the central technology development arm of the General Electric Co. (NYSE: GE), among others.
"We're focused on innovation, so this worked out really great for InDevR," Rowlen said. "It's pretty exciting."
Kline is known locally for co-founding Medivance Inc. in 1998. The medical device company in Louisville was known for products to warm and cool patients during surgical procedures. Medivance was acquired by C.R. Bard Inc. (NYSE: BCR) in Murray Hill, New Jersey, in 2011 in a $250 million transaction.
Kline worked in the medical-device field for more than 25 years before starting Medivance. Medivance received at least $43 million from investors that include Camden Partners, Credit Suisse First Boston, Kimberly-Clark Ventures and Partisan Management Group.
More breaking news...
CEOs: Health care administrative costs still rising
Lacy replaces Kam Mofid, who left the company to pursue other interests, according to a
Brewery takes space in former Butterball building
New Belgium hosting roundtable on EPA water rule