Author: Bruce V. Bigelow

  • Wave vs. Wave: Breaking News in San Diego’s War Between the Surf Machines

    Bruce V. Bigelow wrote:

    Stand on any beach on any ocean, and one of the things you will eventually notice about waves is that they keep coming—which might turn out to be the case with legal disputes over wave-making technology as well.

    It certainly seemed that way last year, when I wrote about a startup in Solana Beach, CA, called American Wave Machines, or AWM. Founder surfstream-logoBruce McFarland and his wife Marie started the company in 2000 to develop his ideas for SurfStream, a machine capable of generating a standing wave big enough for paying customers to surf. But AWM’s hopes for a glassy ride to the green room got pitched in the soup in 2008, when San Diego’s “wave war” began.

    McFarland’s former boss, Tom Lochtefeld, filed a patent infringement suit, alleging that AWM’s technology was infringing on patents that Wave Loch logoLochtefeld and his company, San Diego-based Wave Loch, have been commercializing since 1991. Lochtefeld was all amp’d about McFarland dropping in on his wave—or what he said was his wave. It was like a field day at the courthouse for all the men in the gray suits. AWM denied Lochtefeld’s allegations, and asked a federal judge in San Diego to suspend the litigation until the patent office has conducted an official review of the claims asserted by Lochtefeld and Wave Loch.

    So it seemed like victory at sea for AWM when I got a press release this week (from AWM) that says the U.S. Patent and Trademark Office (USPTO) “has invalidated each of the 27 patent claims asserted by Wave Loch in its patent infringement claim against American Wave Machines.”

    In an e-mail, the lawyer for AWM, Gil Cabrera, says, “Once the USPTO issues the Reexamination Certificate consistent with its final rejection of Lochtefeld’s claims, we will file a motion to dismiss the entire case because none of the claims he asserted against AWM survived reexamination.”

    Cabrera says the patent office ruling puts AWM in a “great position to ultimately prevail in the litigation.” But when I asked Lochtefeld for his response, he was like, Whoa. Wait a minute Ho-dad. He tells me by e-mail: “Bruce. Your information is false.” Then he calls me—from London—to say, “There are still patent claims outstanding. I met with …Next Page »












  • Vertex Gets Strong Results From Hepatitis C Trial, Anadys Explores Alternatives, Funding Helps to Revive La Jolla Pharmaceutical, & More San Diego Life Sciences News

    Bruce V. Bigelow wrote:

    We saw mostly funding news for San Diego’s life sciences community over the past week, and it was light fare. Get our latest roundup here, and enjoy your Memorial Day weekend.

    Vertex Pharmaceuticals, which is based in Cambridge, MA, and operates a research facility in San Diego, said its experimental drug for hepatitis C cured 75 percent of the patients in the last stage of clinical testing required for FDA approval. Luke detailed the results from a pivotal study of 1,095 patients.

    Anadys Pharmaceuticals (NASDAQ: [[ticker: ANDS]]), the San Diego biotech developing a drug to treat hepatitis C, said it has hired an adviser to explore “strategic alternatives” for the company. Such alternatives range from a potential sale of the company or selling or licensing its experimental hepatitis C drug, according to a regulatory filing. Anadys also said it entered into agreements with certain institutional investors to raise about $12.5 million.

    La Jolla Pharmaceutical, which now trades on the over-the-counter bulletin board, said it plans to raise as much as $16.3 million as it seeks to revive its fortunes. The San Diego Union-Tribune said the San Diego biotech found institutional investors to commit up to $6 million toward efforts to restart its business.

    Cyntellect, a San Diego-based provider of biotech research instruments, raised an additional $9 million in equity, debt, and rights as part of a $16 million round the company raised last year. Cyntellect’s instruments are designed to analyze, purify, and grow cells for life sciences research.

    —San Diego’s newest non-profit biotech group, the San Diego Entrepreneurs Exchange, organized a presentation and discussion on the fine art of grantsmanship—apply for and winning federal Small Business Innovation Research (SBIR) grants. The tips they offered included a Top 10 list of dos and don’ts from Scott Struthers, the founder and chief scientist at San Diego-based Crinetics Pharmaceuticals.












  • Zeebo Raises $8M

    Bruce V. Bigelow wrote:

    San Diego-based Zeebo, the game console maker backed by wireless giant Qualcomm and Brazilian video-game developer Tectoy S.A., has raised $8 million in a combination of equity, debt, and loans convertible to stock, according to a recent regulatory filing. The Zeebo consoles are available throughout Brazil and Mexico in a plan that Zeebo laid out last year. Consumers can buy inexpensive games, download them directly to the Zeebo, and access the Internet.

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  • La Jolla Pharmaceutical Revives With $6M Financing

    Bruce V. Bigelow wrote:

    Like a scene from a Monty Python skit, a San Diego biotech left for dead has announced plans for a new financing—and says it has revived interest in its experimental drug for treating Lupus of the kidneys. The company halted work on the drug in early 2009.  In a statement yesterday, La Jolla Pharmaceutical disclosed plans to raise as much as $16.3 million to evaluate potential various opportunities, including Riquent, its drug for Lupus nephritis. The San Diego Union-Tribune reports today that La Jolla Pharmaceutical found institutional investors to commit up to $6 million toward efforts to restart its business. The biotech could not get enough shareholders to vote on a liquidation plan last year, and withdrew from a planned merger in March.


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  • What Google’s WebM Looks Like to Video Digerati in San Diego and Boston

    TV on the Internet
    Bruce V. Bigelow wrote:

    It’s been a week since Google announced a new open-source video project called WebM at its I/O Developers Conference in San Francisco, with the online media giant arguing that streaming video—like nearly everything else on the Internet—just wants to be free. So it seemed like a good time to see how some digital video technology companies are reacting to the move.

    In announcing its WebM project, Google (which owns YouTube) said it was joining forces with roughly 40 other companies, including Japan’s Sony, Intel, Adobe, and Logitech to promote the use of WebM under a permissive free software license. Conspicuously missing from the list were Microsoft and Apple. In its statement, the Mountain View, CA, company said, “With Google TV, consumers will now be able to search and watch an expanded universe of content available from a variety of sources including TV providers, the web, their personal content libraries, and mobile applications.”

    The WebM technology includes the VP8 video codec, which Google acquired as part of its $140 million buyout of On2 Technologies earlier this year, and Ogg Vorbis, an open source audio codec that’s already widely implemented. A wrinkle that drew much media attention, however, is that Google’s plans to freely license WebM technology could run afoul of MPEG LA—the licensing body for the rival H.264 video codec.

    So what was the reaction among digital video leaders from coast to coast?

    —At Qualcomm, the vice president of product management in CDMA Technologies, Rag Talluri, writes in a blog post that the San Diego wireless giant is “a strong supporter” of WebM and openly available standards. “This is why we are excited that the company behind the biggest online video portal is enabling the VP8 initiative,” Talluri says. “We thus continue to collaborate with On2/Google’s engineering teams to support VP8 codec on our mobile platforms and deliver a rich video experience on Qualcomm-powered mobile devices. “

    —In Cambridge, MA, Brightcove marketing vice …Next Page »

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  • TCA Names Quick Pitch Winners

    Bruce V. Bigelow wrote:

    Lucine Biotechnology founder Chandler Marrs won the “Best Overall” and “People’s Choice” awards at last night’s Tech Coast Angels’ Quick Pitch event in Irvine, CA. Most of the 12 finalists making 90-second presentations were entrepreneurs from Orange County and nearby communities. Lucine is developing low-cost salivary tests for horomone-related Obstetrics-Gynecology conditions. FlexCell Systems, a startup supplying electro-deposition equipment for silicon wafers, won “Best Presentation,” and Lillium Industries was named “Best Funding Opportunity” for its FDA-approved alternatives for improving lifespan.












  • After Decade of Development, Cymer Moves Into OLED Display Manufacturing

    TCZ logo
    Bruce V. Bigelow wrote:

    When San Diego-based Cymer (NASDAQ: CYMI) announced its first-quarter financial results last month, the company noted almost parenthetically that it’s just beginning to roll out technology to manufacture OLED display screens.

    In the 24 years since it was founded, Cymer’s business has been focused almost entirely on making advanced lasers that serve as the light sources in the photolithography process used in semiconductor manufacturing. The ability of Intel, AMD, and other semiconductor makers to produce chips with smaller and smaller microcircuit designs is due in part to Cymer’s ability to make lasers that produce light at ever-tighter wavelengths. The company now has about 3,300 lasers operating in semiconductor plants around the world; its most advanced lasers, which cost about $1.7 million apiece, are sold to ASML, Canon, and Nikon for integration into scanners—the big machines used to put microcircuits on silicon wafers.

    Cymer logoCymer’s success in keeping pace with chipmakers has given the company a commanding global market share, and Cymer spokesman Blake Miller says Japan’s Gigaphoton is its only remaining competitor. As a semiconductor tool supplier, however, Cymer has faced an extraordinarily volatile market. In the winter of 2008-09, for example, Cymer laid off at least a third of its worldwide workforce as the recession deepened. Cymer has long needed another business to dampen the vicious swings of its core semiconductor business.

    So it was noteworthy, to say the least, when Cymer said its TCZ display division has installed its first system for making ultrathin OLED displays at the facilities of an unnamed customer in South Korea. While the first system undergoes integration and testing, Cymer says it plans to deliver its second OLED manufacturing system to another unnamed customer in China by the end of October.

    OLED technology itself has been 20 years in the making, according to David Knowles, a 12-year Cymer veteran who now heads the company’s TCZ division.

    Knowles says one of the key innovations underlying TCZ’s OLED technology is a process that creates a uniform grid of transistors on the semiconducting material that forms a …Next Page »

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  • Motorola Considers San Diego, Other Cities, for Mobile Spin Off Headquarters

    MotorolaLogo
    Bruce V. Bigelow wrote:

    Motorola (NYSE: MOT), the mobile communications technology giant based in Schaumburg, IL, is scouting sites in Chicago, Dallas, and California for the headquarters of its cell phone spinoff set for next year, according to Crain’s Chicago Business. San Diego is among the California cities under consideration, according to an interview with Motorola co-chief executive (and former Qualcomm COO) Sanjay Jha that was published yesterday in the San Diego Union-Tribune.

    Motorola recruited Jha in 2008 as its turnaround man, naming him co-CEO and head of its mobile phone and cable set-top box businesses. The company initially planned a spin off in late 2008, a split that got postponed until 2011. Motorola’s core infrastructure business (which makes wireless network gear and police radios) will remain in Schaumburg.

    Jha also has suggested Silicon Valley as a possible headquarters for the new company, citing the deep pool of high-tech talent during an interview three months ago. In Sunday’s Union-Tribune interview, Jha says a key factor in deciding where the mobile and spinoff should be located depends on how much business it does in China.

    “In San Diego, we already have a very big facility,” Jha told the Union-Tribune. “As you know, I have the mobile business as well as the set-top box business. The set-top box business has very deep roots in San Diego. I think my links to San Diego, if anything, deepened as a result of having that business.

    “But I don’t know that we have made that decision. Is San Diego a possibility? When we get engaged with it, we’ll definitely consider San Diego. My family, you know, still lives there. I have a special place for San Diego in heart.”

    I sent queries to several Motorola public relations staffers by e-mail earlier today, but they didn’t immediately respond. The company did issue a statement today in its home media market, which was picked up by the website Chicago Breaking Business, which is affiliated with the Chicago Tribune and WGN.

    “If Mobile Devices and Home make the decision to relocate its headquarters, this would affect less than 200 people and would not occur in 2010,” the company said in a statement. Motorola has more than 10,000 employees in the Chicago area. The company’s mobile devices division is currently based near Chicago, in Libertyville, IL.

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  • SoCal Angel Investing on Sluggish Pace as Investors Rethink Process

    Tech Coast Angels May 2010
    Bruce V. Bigelow wrote:

    Angel investing in Southern California remained sluggish during the first quarter of 2010, although individual investors’ overall mood seems to be improving, according to Tech Coast Angels chairman Richard Dudek.

    “Last year was the worst year since our inception,” says Dudek, a Laguna Niguel, CA, resident who oversees the 300-member organization. This is saying something, since the angel investing group was founded in 1997, merged with the San Diego Band of Angels in 2000, and now comprises five chapters throughout Southern California.

    The Tech Coast Angels made investments in five deals in the first quarter, and Dudek says, “I think we’re just slowly getting back to normal.”

    As we reported in March, the Tech Coast Angels says its members made $4.7 million in direct investments in seven new deals and 17 follow-on deals in 2009, and helped to attract an additional $57 million from other sources. The capital invested was down from $75 million in direct and affiliated investments, according to the Tech Coast Angels.

    During the first three months of 2010, Southern California’s angels invested about $1.6 million (out of a total $11.5 million) that went into funding five direct and follow-on rounds, according to Dudek. If this rate continues through the rest of the year, the Tech Coast Angels might not match the capital invested or the number of deals they did in 2009.

    But so far, it’s still too early to say. The Tech Coast Angels have been involved in three second-quarter deals that raised total funding of $2.9 million. One was for Amplyx Pharmaceuticals, a woman-owned biotech based in San Diego that Luke profiled last month. The angels also helped provide funding for Vokle, a live online video radio show based in the Los Angeles area, and MicroPower, a Beaverton, OR, designer of custom battery packs and charging systems.

    “In general, there is definitely a mood shift on the process of angel investing,” Dudek says. Where angels used to think about “the path to exit, they now look at what’s the path to funding,” Dudek says. “We need to be a lot more thoughtful about [the process] we need to get the company to that VC round.”

    The angels group, which is technically a nonprofit mutual benefit corporation, provided funding to two San Diego companies in the first quarter:

    Benchmark Revenue Management develops financial management software to help hospitals become more efficient and more effective through administrative efficiency gains facilitated by its technologies.

    Allylix has developed proprietary technology for producing a group of natural products called terpenes at low cost. In nature, terpenes are produced by plants in minute quantities and serve a variety of functions. Some act as flavors and fragrances, some are insect repellants, and others are anti-fungal, or anti-viral.

    The Tech Coast Angels also provided funding for three other startups in Southern California: Cyber-Rain, an Agoura Hills, CA, maker of wireless irrigation and waterflow control technologies; Vigilistics, an Irvine, CA, developer of industrial plant monitoring software; and H2Scan, a Valencia, CA, startup developing sensor technology that can detect hydrogen gas at concentrations as low as 15 parts per million.

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  • Biofuels Consortium Targets Technical Hurdles, Legend Films Morphs Into Legend 3D, Fallbrook Technologies Adds Details to IPO Filing, & More San Diego BizTech News

    Bruce V. Bigelow wrote:

    Cleantech was the watchword of the week, with much of the news concerning algae-based biofuels and energy efficiency. Read on to get that and the rest of last week’s biztech news.

    —The new executive director of the National Alliance for Advanced Biofuels and Bioproducts (NAABB), José Olivares, outlined some of the technical challenges that must be solved before algal biofuels production can become an economically viable industry. Olivares came through San Diego to meet with members of the NAABB from UC San Diego, HR BioPetroleum, and Kai BioEnergy.

    Fallbrook Technologies, the San Diego startup developing an energy-efficient, continuously variable transmission, provided new information in a recent fling about the financial risks and funding requirements the company faces. Fallbrook filed for an IPO in February.

    —The San Diego company that Barry Sandrew started in 2001 as Legend Films specialized in providing digital colorization technology for the motion picture industry. But the company has recently reinvented itself as Legend 3D, and now focuses on visual special effects and 3D technology for Hollywood. With studio demand for 3D “dimensionalization” exploding, Legend 3D has 260 employees at its San Diego headquarters and another 700 in Patna, India, and plans to add another 500 there in coming months.

    —After securing a $100,000 grant to get life sciences entrepreneurs to talk with teen-agers about their technology innovations and startup companies, Connect CEO Duane Roth is looking for additional funding to do the same thing with high-tech entrepreneurs. The idea behind the grant from the Biogen Idec Foundation of Cambridge, MA, is to get young people excited about studying science, technology, engineering, and math.

    —Some 1,200 people and more than 70 companies turned out for San Diego Gas & Electric’s 5th Annual Energy Showcase at the downtown convention center. I found a few local startups that are developing innovative technologies.

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  • Biotech Entrepreneurs Offer Tips For Winning an SBIR—Including a Top 10 List of Dos and Don’ts

    SDEE-logo
    Bruce V. Bigelow wrote:

    The latest organization to spring fully formed from the brow of San Diego’s Life Sciences community was not Athena, but the San Diego Entrepreneurs Exchange, which Denise profiled in March when the SDEE was preparing to hold its first meeting.

    I’d guess close to 140 people turned out earlier this week for the group’s second meeting, which was organized around a case study presentation and discussion among local biotech entrepreneurs who were successful in winning Small Business Innovation Research (SBIR) grants from the National Institutes of Health. These are small grants. David Larocca, the founder, CEO, and principle scientist of Mandala Biosciences, says a Phase I SBIR “proof of principle” grant is usually limited to $150,000, while a Phase II “commercialization” grant is typically limited to $1.2 million.

    But even the smaller figure might be enough to help an early stage biotech survive. Although SDEE’s focus was on SBIRs awarded through the NIH, the Pentagon also awards a big chunk of SBIR grants. (Some local tech entrepreneurs previously talked about their experience here.) SDEE founder and Orphagen CEO Scott Thacher says he founded the SDEE for biotech entrepreneurs like himself who are unlikely to get venture capital funding for their early stage startups. “We try to attract entrepreneurs or people who have lost their jobs or who are trying to get their company to the next level,” Thacher says.

    John Finn, the chief scientific officer of Trius Therapeutics, says life sciences startups can’t live by SBIRs alone. In his case study presentation about the early years of Trius, Finn says he potentially saved millions of dollars by acquiring …Next Page »

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  • Sony and Google Plan ‘Internet TV’

    Bruce V. Bigelow wrote:

    Japan’s Sony Corp (NYSE: SNE), today unveiled plans to launch a Sony Internet TV this Fall that will rely on Google’s open-source Android OS platform. Sony, which announced the move with Intel and Logitech at Google I/O in San Francisco, says the new Internet TV embodies a new generation that not only offers new forms of TV viewing through unprecedented Internet integration, and is also able to “evolve” by downloading apps. Sony and Google (NASDAQ: GOOG) also announced they have formed a strategic alliance “to provide a range of new and rich entertainment experiences.” Sony Electronics’ North American headquarters is in San Diego.

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  • Trius Gets $29.5M Defense Contract

    Bruce V. Bigelow wrote:

    The Defense Threat Reduction Agency has awarded a contract that could be worth as much as $29.5 million through 2015 to San Diego’s Trius Therapeutics to develop novel antibiotics for gram-negative bacterial pathogens. In a statement, Trius says it will use its proprietary Focused Antisense Screening Technology and expertise in structure-based drug design to optimize promising antibacterial compounds for a variety of microbes, including germs that cause Bubonic plague, rabbit fever (tularemia), and Melioidosis.

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  • Halozyme Announces Recall, Pathway Genomics Halts Genetic Test Kit Rollout, Vertex Gets Ready for Hepatitis C Results, & More San Diego Life Sciences News

    Bruce V. Bigelow wrote:

    April was a dry month for life sciences news, but May has been roaring with Halozyme’s product recall, Pathway Genomics’ aborted sales plan, and funding news—lots of funding news. Your Xconomy life sciences briefing begins now.

    —San Diego’s Halozyme Therapeutics (NASDAQ: HALO) and its manufacturing partner, Baxter Healthcare, announced that they are voluntarily recalling Hylenex, an injectable fluid used to enhance treatment of pediatric dehydration. The companies said they had discovered flakes of glass particles in a limited number of Hylenex vials.

    —The FDA put the kibosh on plans by San Diego’s Pathway Genomics to sell over-the-counter genetic tests at the corner Walgreens, the drug store chain operated by the Walgreen Company of Deerfield, IL. The FDA says it wants to retain regulatory oversight of plans by Pathway Genomics and other companies to sell genetic tests and services.

    —Nobel laureate K. Barry Sharpless and Scripps Research Institute colleague M.B. Finn told Luke they’re encouraged by the increased attention they’re getting for their work on “click” chemistry. By combining combinatorial chemistry, high-throughput screening, and building chemical libraries of molecular building blocks, they say click chemistry can be used to speed up drug discoveries by making multistep synthesis fast, efficient, and predictable.

    Connect is developing a pilot program with a $100,000 grant from the Biogen Idec Foundation that will send the entrepreneurial founders of early-stage biotech companies into local classrooms to talk with teenagers about their breakthrough innovations and startup companies. Connect CEO Duane Roth says the program was conceived as a way to get young people excited about studying science, technology, engineering, and math.

    —Cambridge, MA-based Vertex Pharmaceuticals, which has significant operations in San Diego, is anxiously awaiting the results from three crucial clinical trials of its lead drug candidate for treating hepatitis C. Bob Kaufman, the company’s chief medical officer, told …Next Page »












  • How to Make Money from Saving Energy: Tales of Innovation at the SDG&E Energy Showcase

    Energy Conservation dollar sign
    Bruce V. Bigelow wrote:

    Conservation is a big deal in California. While per capital energy usage has climbed approximately 50 percent from 1975 to 2005, according to presentations by former California Energy Commissioner Arthur Rosenfeld, California managed to keep the growth of energy consumption at about  2 percent per capita over the same period—largely by requiring aggressive energy conservation measures.

    As part of that overall conservation push, San Diego Gas & Electric convened its fifth annual SDG&E Energy Showcase to recognize their customers’ biggest success stories at reducing energy waste. For example, by installing LED lighting, sophisticated refrigeration controls, and taking other conservation measures, Carlsbad, CA-based Life Technologies (NASDAQ: LIFE) cut its electricity consumption by 5,200,000 kilowatt hours a year—or about 28 percent—and estimates it will save about $4 million in reduced energy costs over five years. And it won’t take forever to recoup its upfront investment in energy savings. The company, which provides laboratory equipment and supplies for biotech labs, also got $724,526 in rebates and incentives from SDG&E to do the energy efficiency work.

    As part of its showcase, SDG&E also holds an exhibition for the companies that provide the products and services that help SDG&E customers reduce their energy costs.

    “We want to make sure [energy conservation successes] are visible to our customers,” says Mark Gaines, director of energy efficiency and demand-response programs at SDG&E, one of two utilities that are owned and operated (and generate about half the revenue) by San Diego-based Sempra Energy (NYSE: SRE). Gaines says SDG&E doesn’t certify the individual companies that provide energy efficiency services. Rather, he says, “We certify the technology, so we have a list of technologies that are available for rebates.”

    More than 70 companies registered as exhibitors, and there was a strong showing by companies that specialize in …Next Page »












  • Biogen Idec Grant Sends San Diego’s Aspiring Biotech Rock Stars Into Local Schools

    Ajay Bhatt co-unventor of the USB
    Bruce V. Bigelow wrote:

    In a move that borrows a page from Intel’s “Rock Stars of Engineering” advertising campaign, a San Diego non-profit group is organizing a program that will bring the aspiring rock stars of San Diego’s life sciences industry into local classrooms.

    The pilot program, funded by a $100,000 grant from the Cambridge, MA-based Biogen Idec Foundation, will recruit entrepreneurial founders of early stage biotech companies to talk about their breakthrough innovations and why they started their companies. The idea is to get young people excited about studying science, technology, engineering, and math (STEM), says Duane Roth, who heads Connect, the 25-year-old non-profit organization that supports technology and entrepreneurship in San Diego.

    “So many things have been tried before,” says Roth, who frets that American students just don’t relate to STEM education or see the career possibilities. “We think young people—7th, 8th, 9th, 10th, 11th, and 12th-graders—relate more to products than to lectures.” By arranging to have entrepreneurs talk about their technologies, Roth says, students can grasp how inventions gets commercialized, and what it takes to bring a product to market.

    One early recruit, for example, is Jack DeFranco, CEO of San Diego-based Targeson, which invents ultrasound contrast agents used to detect disease at the molecular level, before someone who is ill even shows any symptoms.

    The real Ajay Bhatt

    The real Ajay Bhatt

    The speaker program is reminiscent of last year’s Intel ad campaign that has swooning workplace groupies surrounding a wonkish, middle-aged man as a screen graphic reads, “Ajay Bhatt, co-inventor of USB,” which is followed by a message that says, “Our rock stars aren’t like your rock stars.” (An actor was portraying the real Ajay Bhatt.) I’m also reminded of a photo spread in GQ magazine last year of the “Rockstars of Science” that paired Eric Topol, the prominent Scripps’ cardiologist and translational medicine researcher, with real-life singers like Seal, Sheryl Crow, and Josh Groban.

    I think it is a great idea,” says Larry Bock, a longtime life sciences venture investor in San Diego who heard about the pilot program in March. As executive director of the non-profit USA Science & Engineering Festival, which is scheduled to take place this fall in Washington, D.C., Bock has focused much of his time on …Next Page »

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  • San Diego’s Celula Gets $15M for Molecular Diagnostics

    Celula logo May 2010
    Bruce V. Bigelow wrote:

    Celula, a molecular diagnostic startup founded in San Diego five years ago, has raised $15 million in a secondary round of venture funding led by Palo Alto, CA-based Skyline Ventures, according to a VentureWire report today.

    Celula’s top executives did not return a call this afternoon seeking to confirm the report, although Skyline lists Celula as a portfolio company, as do two other new investors, CHL Medical Partners of Stamford, CT, and Kaiser Permanente Ventures of Oakland, CA. Previous investors Enterprise Partners Venture Capital of San Diego and Versant Ventures, which has offices in the Bay Area and Newport Beach, CA, also participated in the Series B round, according to VentureWire. A previous investor, Arch Venture Partners, was not identified among the current investors.

    Celula was founded in May 2005, according to New York-based CB Insights, but has maintained a low profile. The company’s website says Celula develops innovative instruments for personalized diagnostics that use advanced micro-fluidics and other technologies. Skyline venture offers what may be a more succinct description, saying, “Celula is developing a prenatal diagnostic test based on isolation of fetal cells from the mother’s blood.”

    It might be worth noting that Celula co-founder Andy Katz was previously a senior executive at Genoptix Medical Laboratory (NASDAQ: GXDX), a Carlsbad, CA-based company that provides centralized diagnostic laboratory services for blood specialists. Enterprise Partners’ Drew Senyei, a Genoptix venture investor who has remained as board chairman, also was an early venture investor of Celula, and serves on Celula’s board.












  • Legend Has It—An Early Leader in the Post-Avatar Rush to Convert 2D Films to 3D

    Legend 3D logo
    Bruce V. Bigelow wrote:

    Barry Sandrew, who was once a staff neuroscientist at the Harvard Medical School, now presides over one of the fastest-growing companies in San Diego—with a business that has nothing to do with medical research.

    As a matter of fact, the company known today as Legend 3D no longer resembles the digital colorization studio that Sandrew started here almost nine years ago (with $6 million in venture funding from what is now Boston’s Par Investment Partners). Legend 3D has about 260 employees at its San Diego headquarters, which is 100 more workers than it had here last year, according to Sandrew. And Legend 3D has another 700 employees in Patna, India—and plans to increase that number to 1,200 in coming months.

    So what does Legend do now? What began in 2001 as Legend Films, one of Hollywood’s leading technology centers for digital movie colorization, has morphed seemingly overnight into Legend 3D, a fast-growth business that specializes in digital 3D conversion of TV commercials, feature films, and previously released movie titles. Sandrew calls it the “dimensionalization” of cinema, and he says studio demand for the technology is exploding.

    The San Diego company completed work for Disney in February on about 25 minutes of 3D footage for Tim Burton’s “Alice in Wonderland,” and is working on three new feature film projects for Dreamworks, along with other major projects. “We have been turning away work,” Sandrew says. “We just don’t have the capacity. But we are moving to have the capacity.”

    As anyone who’s been to the Cineplex knows, the reason for the rush to 3D is Avatar—the 3D science fiction epic written and directed by James Cameron. Avatar ranks as the highest grossing film in history, having generated nearly $748.5 million in domestic box office receipts and $2.7 billion worldwide, according to Box Office Mojo.com.

    But what Sandrew refers to as a “tsunami” in 3D filmmaking has been building in …Next Page »

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  • Fallbrook Details Risk Factors in Amended IPO Filing

    Fallbrook Technologies logo
    Bruce V. Bigelow wrote:

    San Diego’s Fallbrook Technologies amended its IPO filing with securities regulators Friday—providing additional details about the company’s risk factors, including its lack of profitability and need to raise more capital to stay afloat.

    As we reported, Fallbrook filed for its initial public offering in February. The cleantech company, which has 56 employees, has been developing a continuously variable transmission as a more energy-efficient design for bicycles, wind power turbines, electric vehicles, and other uses.

    Fallbrook Technologies' continuously variable transmission designThe company says it has received 168 domestic and foreign patents protecting its technology, and has submitted another 209 patents here and abroad. To finance its technology development over the past decade, Fallbrook has raised a total of $55 million from angel investors and in recent years, from NGEN Capital Partners, Robeco, a subsidiary of Rabobank Group, and other venture investors.

    Among other things, the revised filing shows:

    —Fallbrook lost $2.97 million in the three months ended March 31. The company said its net losses increased to $17.2 million last year from $10.56 million in 2008, and it expects to incur a loss in 2010 as well. Increased investment in commercializing its technology, along with escalating salaries and related expenses, “will make it harder for us to achieve and maintain future profitability,” the company says.

    —Fallbrook says it has been expensive to raise private capital. In its amended filing, the company says: “If we are unable to raise capital from this public offering, in order to continue to expand our operations and invest in our products and manufacturing facilities, we believe we would need to raise approximately $18 million within the next twelve months through a private equity offering. We would also draw on any remaining amounts available under our existing revolving line of credit.” The company says it does not currently have other abilities to borrow.

    —The company’s estimated cash burn rate is about $1.5 million a month. At the end of March, Fallbrook says it had about $5.4 million in available cash, with another $1 million left on a $3 million line of credit.

    — Fallbrook said it signed a non-binding memorandum of understanding with Chengdu Bus Co. of Chengdu, China, last month, and the company could eventually sign a deal that would provide Fallbrook’s transmission technology for the accessory drives of Chengdu buses.

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  • Glass Flakes in Vials Prompt Halozyme, Baxter to Recall Hylenex Pediatric Rehydration Product

    halozyme logo
    Bruce V. Bigelow wrote:

    First San Diego’s Cadence Pharmaceuticals (NASDAQ: CADX), and now, Halozyme Therapeutics (NASDAQ: HALO), have encountered troubles resulting from contaminated biomedical products coming from their manufacturing partner, Baxter Healthcare, a unit of Baxter International (NYSE: BAX) of Deerfield, IL.

    Today Halozyme and Baxter said they are voluntarily recalling affected lots of a product called Hylenex that is used to treat pediatric dehydration after discovering glass flakes in “a limited number of vials.”

    In a statement, Halozyme says no “medical events” associated with glass particles in vials of Hylenex have been reported, and the recall is being taken as a precautionary measure to ensure patient safety. Baxter says the contamination affects some 3,500 vials in distribution.

    As Denise reported in February, Cadence suffered a setback in its efforts to win FDA approval for its intravenous form of acetaminophen (the pain reliever used in Tylenol and other products) after an FDA inspection identified numerous deficiencies in a Baxter plant in Cleveland, MS, that was preparing to manufacture the product. After meeting with the FDA in April, and resubmitting its filing for a new drug application for its IV painkiller, called Ofirmev, the FDA said it would act on Nov. 4, according to Cadence.

    Halozyme said earlier today it had notified Baxter Health that it had breached the terms of its supply contract. Halozyme said if Baxter is unable to address the contamination issue within 120 days, it may terminate the contract.

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