Intersouth Partners recently led a $10.7 million investment in MaxCyte, a clinical stage biotechnology company in Rockville, MD, that is developing cell-based therapeutics.
In addition to Durham-based Intersouth, which reportedly provided $4 million, the private placement of Series B preferred stock included additional first-time institutional financing provided by Harbert Ventures, Tall Oaks Capital and several previous investors.
MaxCyte had already raised some $8 million, with funding from EntreMed Inc., the VenCap Opportunities Fund, the Maryland Dept. of Business and Economic Development, and the Montgomery County Dept. of Economic Development.
Intersouth’s Don Rainey and Chris Hegele, as well Harbert Managing Partner William Brooke, will join MaxCyte as directors. They will join the current board comprised of CEO Doug Doerfler and Stark Thompson, former president and CEO of Life Technologies Inc. (now Invitrogen).
“We’re excited about working with MaxCyte,” said Rainey, who is Intersouth’s lead partner in the Mid-Atlantic region. “With the potential for the company’s high-value therapeutic programs and the current success–, I believe this company will be a real success story in the cell therapy arena.”
The funding will be used to advance MaxCyte’s therapeutic programs in cancer and autoimmune diseases and to increase drug discovery and bioprocessing applications using the MaxCyte GT, the company’s non-viral cell-loading system. Along with its partner, the Baylor College of Medicine, MaxCyte expects to enter Phase I/II clinical trials for their treatment for chronic lymphocytic leukemia in the first half of 2004.
“This financing provides the resources to accelerate the adoption of MaxCyte’s therapeutic cell-loading technology and we’re excited Intersouth Partners and Harbert Ventures have joined our effort to develop therapeutics and further commercialize the MaxCyte GT,” said Doerfler. “Our cell-loading technology overcomes serious roadblocks in cell-based therapies, and our growing portfolio of customers and partners illustrate we’re making significant progress towards fundamentally improving how theses therapeutics can be successfully developed.”
The revenue-generating MaxCyte GT system is currently being utilized by pharmaceutical and biotech companies and the National Human Genome Research Institute at the National Institutes of Health.