MediQuest Therapeutics Takes Streamlined Route To VC Liquidity MediQuest Therapeutics Inc. is taking what it hopes will be a streamlined approach to providing liquidity for its venture backers: licensing out its portfolio of drug candidates and distributing the proceeds.
Phased exit strategies such as this one are growing more common as venture firms search for ways to make returns at a time when taking a company public or selling it whole is difficult. Last year, for example, venture backers of Actimis pharmaceuticals Inc. agreed to a structured merger with Boehringer Ingelheim GmbH. The deal called for Boehringer to buy shares in the company as Actimis’ lead asthma drug reached milestones.
In its case, MediQuest decided that selling its portfolio and distributing the upfront payments, milestones and royalties would provide the most timely exit for its investors. The company, which formed in 1994 and raised its initial venture capital in 2006, hopes to complete the licensing transactions in six to nine months, said Chief Executive Frederick J. Dechow. Company backers include Integra Ventures, Janus, Masa Life Science Ventures, Novo A/S and individuals.
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