PowderMed

In May 2004 Advent invested in the spin-out of the therapeutic DNA vaccine business from Chiron, Inc, a leading US biotechnology company.

Chiron had acquired the UK company, PowderJect Pharmaceuticals, in July 2003 primarily for its prophylactic flu vaccine business.

Chiron’s focus was on conventional prophylactic vaccines and the immunotherapeutics programmes of PowderJect and its needleless drug delivery device were not core to its strategy. Clive Dix who was the senior VP responsible for Research and Development at PowderJect identified this opportunity and led the MBO.

Jerry Benjamin and Shahzad Malik were key to the formation of the new entity which it was decided to base in Oxford, UK, and which became PowderMed. They worked to structure the initial investment together with a strong investor syndicate, which, in addition to Advent Ventures, included Schroder Life Sciences, Abingworth and Oxford Bioscience Partners.

Jerry went on to the Board of the new company as the founding Chairman and, subsequently Advent identified, through its networks, Rolf Stahel, previously CEO of Shire Pharmaceuticals, who succeeded Jerry as Chairman. Jerry remained on the Board and it was he and Patrick Lee who worked together, with the management, in the complex negotiations for the sale of PowderMed to Pfizer, which completed in October 2006.

A very attractive return

Whilst the value of this transaction cannot be publicly disclosed, it was by the far the highest price paid for a European venture-backed biotechnology company for many years. It provided a very attractive multiple return on Advent Ventures’ original investment cost and this is a further case of Advent Ventures backing outstanding technology addressing large markets.

This is a good example of how Advent leads deals and plays an active role in building value across its portfolio companies utilising the team’s broad range of expertise.