CellzDirect Closes Financing, Acquires CEDRA's In Vitro Drug Metabolism Business
$2.1MM funds expansion of CellzDirect's line of cell products and bio/pharma services
Press Release, October 20, 2003
CellzDirect, Inc., a cell-based biotech company, announced today that it acquired the in vitro drug-metabolism division of Austin's CEDRA Corporation. This transaction further enables privately held CellzDirect to provide biopharmaceutical scientists with quality cell products and laboratory services to accelerate discovery of safe and effective new drugs. In conjunction with the acquisition, the Company also closed a new round of financing at more than $2 million. All current institutional investors — Valley Ventures, Solstice Capital, Technology Funding, and Village Ventures — participated in this corporate expansion. CellzDirect has raised approximately $6.5 million since its inception in April of 2000.
Under terms of the transaction, CellzDirect acquired CEDRA's cell-culture laboratory, which has been providing cell products from non-transplantable human livers, as well as from select animal species. Included in the acquisition is CEDRA's service business that conducts outsourced research in drug metabolism, drug-drug interactions, and toxicology for the biopharmaceutical industry.
CellzDirect's senior management has extensive experience with tissue procurement, life-science logistics, commercialization, product development, and mergers and acquisitions. Chief Executive Officer Scott Edelman has run several technology-based companies, including Group Systems, H.I.S., and Integral Systems, and is an expert in the integration of high-growth companies. Chief Business Officer Rick Williams was previously the president of ICS/Lash, a consulting and commercial-services business that he built for AmerisourceBergen after leaving Genentech, where he had been the head of marketing.
"This is our first acquisition and it will immediately enable us to provide our scientific customers with a broader array of cell products and outsourced-research services," said Mr. Edelman. "We are committed to maintaining the same high standards of quality assurance that CEDRA has set while establishing this successful hepatocyte and drug-metabolism business."
"As CellzDirect concentrates on increasing the supply of human and animal hepatocytes through innovative new programs, it will significantly expedite the studies that are being conducted on behalf of biopharmaceutical companies," said Dr. David Garcia, Chief Executive Officer of CEDRA. "My goal now is to focus on expanding CEDRA's bioanalytical and clinical-research business."
"In the year that has passed since we initially invested, CellzDirect has built an impressive client base that already includes many of the top pharmaceutical and biotech companies in the U.S.," said Larry Aldrich, General Partner of Valley Ventures, the lead investor of this round of financing. "We are impressed with the track record of the management team and remain confident that CellzDirect will become the market leader in global cell commercialization and outsourced research."
As Chairman of CellzDirect's board of directors, Harry George of Solstice Capital has played a pivotal role in the rapid growth of this new Arizona company. "This acquisition is a good strategic step for CellzDirect. David Garcia has been successful in the cell-commercialization business and we welcome him to the CellzDirect Board," said Mr. George.
Following the acquisition, CellzDirect will maintain its corporate headquarters in Tucson. The scientific team from CEDRA's in vitro drug-metabolism division will soon be moving into CellzDirect's new cell-culture laboratory and business office in Austin. For more information, please call 520.790.4252
