Novita Therapeutics Raises $3M in Financing; Announces Open Prairie Ventures as New Investor and Partner
Kansas City, KS, May 31, 2011 - Novita Therapeutics, LLC ("Novita") announced today it has raised $3 million in a new financing from Open Prairie Ventures ("Open Prairie"), increasing the capital raised to date to $5 million. "We are so pleased to have Open Prairie as a partner and look forward to working closely with them on the execution of our business plan going forward," said Dr. Nicholas Franano, Novita President & CEO. In connection with the financing, Novita added Open Prairie Partner Michael Peck to its Board of Advisors. "Dr. Franano and the Novita team are proven and accomplished entrepreneurs and a great representation of our investment strategy. My partners and I look forward to helping the team build high growth life science companies."
Conceived as an incubator, Novita identifies opportunities to develop new and innovative medical devices and pharmaceuticals, sources intellectual property and completes key "proof-of-concept" research to validate the product opportunities. Novita then builds a business plan around the products, raises capital, identifies an initial leadership team, and spins the product assets out of Novita into a new company. During spinouts, Novita investors have the opportunity to exchange their preferred equity in Novita for preferred equity in the new companies.
Novita is currently developing a novel, implantable cardiovascular device intended to treat a chronic condition impacting more than 200,000 patients in the U.S. This device will provide a new treatment option for these patients that will reduce morbidity and mortality, while also reducing the overall cost of their care. Novita intends to spin out this device and related technology as part of a new company, Flow Forward Medical, in 2012.
About Novita Therapeutics
Novita Therapeutics, LLC is a privately held biopharmaceutical and medical device company headquartered in Olathe, Kansas. For additional information, please visit www.novitatherapeutics.com.
About Open Prairie Ventures
Open Prairie Ventures is an experienced, early stage venture fund located in Effingham, Illinois and Olathe, Kansas. Founded in 1999 with a Midwest focus, Open Prairie Ventures has invested in more than 20 private companies and manages more than $70 million in two venture capital limited partnerships focused on the life sciences, agricultural and technology sectors. For more information please visit www.openprairie.com.