HEIDELBERG, Germany, May 21, 2003 (PRIMEZONE) -- mtm laboratories AG, a private biotechnology company focused on the early detection and prevention of cancer, today announced the first closing of a second round of financing, totalling 9 million Euro. The money was raised through the participation of a new lead investor, HBM BioVentures AG, with the involvement of the original shareholders Heidelberg Innovation and Mannheim Holdings. The additional funds will enable mtm to strengthen its cancer diagnostics portfolio and to take the products through to market.
The series A financing round in 1999 raised 1.5 million Euro through a consortium of Venture Capitalists including Heidelberg Innovation Bioscience Venture Fund, Mannheim Holdings LLC, mtm & friends GmbH & Co. KG along with an investment as a silent partnership by the tbg of a further 1.5 million Euro.
In May 2001, the founders and VC shareholders issued a convertible bridge loan of a further 3 million Euro, and in 2002, the MBG Baden-Wuerttemberg invested a further 1 million Euro as a silent partnership. Therefore, prior to this closing, mtm had raised a total of 7 million Euro.
Dr. Peter Pack, CEO of mtm laboratories said, "The fact that we have been successful in raising the Series B money in the current financial markets is a strong validation of our technology and products. Many of our peers are still struggling to find new investors, and often have to agree to a 'down-round' in order to raise the capital. mtm is in the fortunate position to have not only found a high-quality new investor in the company, but also has ensured the continued commitment and support of the previous investors. Additionally, we are privileged to have HBM BioVentures on our board as they bring extensive expertise in the biotech industry and will be a key player in the future development of the company."
Dr. Erich Platzer of HBM, commented, "mtm laboratories has demonstrated a proven ability to discover and develop novel cancer diagnostics in lucrative markets and as such makes an exciting and strong new investment for HBM BioVentures. There is a clear market need for the next generation of sensitive and reliable diagnostics for the detection of cancer, and mtm is well placed to take a share of this. We are very excited about the future of mtm and our participation in the growth and development of the company."
Dr. Ruediger Ridder, CSO of mtm laboratories said, "This additional capital will give us the opportunity to bring more products to the market to supplement existing ones, and also allow us to progress the key diagnostics through to market efficiently. We strongly believe that our cancer diagnostics will relieve a huge burden on society and ease the pains associated with incorrect diagnosis and unnecessary treatment."
mtm laboratories AG, founded in 1999, is a privately held company based in Heidelberg, Germany, specialised in the development of products for the early detection, diagnosis and prevention of cancer. mtm's first line of products, CINtec (TM) assays, are currently in clinical trials for the early diagnosis of cervical cancer, the largest existing screening market in oncology. The company has raised a total of 16 million Euro through a consortium of investors including Heidelberg Innovation Bioscience Venture Fund, Mannheim Holdings LLC, HBM BioVentures AG, mtm & friends GmbH & Co. KG including silent partnerships with the tbg and MBG Baden-Wuerttemberg. For further information please visit www.mtm-laboratories.com
Notes to Editors
HBM BioVentures AG is a Swiss investment company focused on the biomedical sectors. The company invests primarily in later-stage private equity, but also in publicly traded companies in the biotechnology, emerging pharmaceutical, medical technology and related industries. Portfolio companies are located mainly in Western Europe and the U.S. For more information, please visit www.hbmbioventures.com
Heidelberg Innovation is one of the leading German venture capital companies in the field of biotechnology and life sciences. Heidelberg Innovation currently manages funds with a total volume of roughly 125 million Euro. With over 50 man-years of industrial experience, the team has already made numerous substantial investments exclusively in the fields of biotechnology and life sciences. Heidelberg Innovation is a member of the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK = German Private Equity Association) and of the European Venture Capital Association (EVCA). For more information please visit www.hd-innovation.de
Mannheim Holdings LLC is a New York based company that invests in the medical diagnostic industry.
mtm & friends GmbH & Co KG is an investment vehicle pooling the investments of founders and private individuals into mtm in order to invest into the company. This fund, and therefore the management, founders and friends of mtm, was the largest shareholder in mtm laboratories up until this financing round.
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