Fwd: Nanogen raises $26 million in private financing; names Thomas G. Lynch o...

Wed, 5 Mar 1997 10:02:32 -0500 (EST)

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From: AOLNewsProfiles@aol.net
Date: 97-03-04 09:48:38 EST

SAN DIEGO--(BUSINESS WIRE)--March 4, 1997--Nanogen Inc. Tuesday
announced that it has completed a private round of financing on its
Series C Preferred Stock, raising $26.2 million.
"We entered this round of financing expecting to raise about $15
million," said Howard C. Birndorf, chairman and chief executive
officer of Nanogen. "The response to the offering greatly exceeded
our expectations."
The company was represented by Cowen & Company which acted as
exclusive placement agent.
"We were very pleased to assist Nanogen in connection with this
highly successful offering," said George G. Montgomery, managing
director of investment banking at Cowen.
This latest round of financing brings the total venture capital
funding raised by the company since its inception in 1993 to $39
The investors participating in this round represent a broad range
of interests from the United States, Canada, Europe and Japan. Major
investors included the existing investors, Birndorf Biotech,
Enterprise Partners, InterWest Partners, Kleiner Perkins Caufield &
Byers and Sprout Group. New investors include Elan Corporation plc,
Oracle Strategic Partners, AIG, INVESCO, MDS Health Ventures, Vulcan
Ventures, Techno Ventures and Integral Capital Partners, the lead
"We were pleased to have had the opportunity to act as the lead
of such a diverse group of sophisticated investors," said John
Powell, managing partner of Integral Capital Partners II, LP and
Integral Capital Partners International III, L.P., two Integral
Capital partnerships which specialize in investments in
expansion-stage private companies and growth-stage companies in the
information and life sciences industries.
"We view the success of the financing and the diversity of
interests represented in this financing as a further validation of
Nanogen's technology," said Tina S. Nova, Ph.D., president and
chief operating officer of Nanogen. "We have made considerable
technological progress over the past year. This funding will provide
us with the flexibility to aggressively pursue our research and
product development objectives in 1997 and beyond and to explore
potential corporate partnerships from a position of strength."
As a consequence of the financing, Nanogen also announced that it
has elected Thomas G. Lynch, executive vice president and chief
financial officer of Elan Corp. plc to its board of directors,
effective immediately. Elan is a leading drug delivery and
biopharmaceutical company headquartered in Ireland. Lynch was
elected following Elan's significant investment in the Series C round
of financing. The addition of Lynch to the Nanogen board increases
the number of directors to eight.
"I am impressed by Nanogen's technology and have great respect
for the company's management and scientific team," said Lynch. "I
look forward to assisting in shaping the future direction of the
Since his appointment at Elan in 1993, Lynch has played an
integral role in the evolution and growth of the company where he is
responsible for, among other things, finance, treasury, strategic
planning and corporate and investor relations. He is also a member
of the executive committee of Elan's board. Prior to joining Elan,
Lynch was a partner with KPMG Peat Marwick where he specialized in
securities matters and business advisory and accounting services.
Lynch is a graduate in economics from the Queen's University in
Belfast and a fellow of the Institute of Chartered Accountants in
Ireland. He also serves as a director of Pembroke Capital Limited,
Icon Limited, Axogen Limited and Warner Chilcott plc.
"I am excited by the addition of Mr. Lynch, who brings a wealth
of international business experience and financial acumen to our
board," said Birndorf. "His considerable experience in
pharmaceutical management, coupled with his insight and creativity,
will be instrumental in helping to lead Nanogen through critical
stages of our corporate development. He will also give us an
international perspective which will help us prepare for future
global relationships."
Nanogen Inc. is a privately held company focused on the
development of a broad-based diagnostic platform which combines
molecular genetics, microelectronics, lasers and nanotechnology.
Centered around its proprietary Automated Programmable Electronic
Matrix (APEX) microchip array technology, Nanogen is developing a
series of products directed toward infectious disease diagnosis,
genetic screening, molecular oncology, blood typing/screening and
biological research, as well as other applications.
The company currently employs 55 people at its corporate
headquarters in San Diego.
Nanogen Inc.
Harry J. Leonhardt, 619/546-7700

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