Origin BioMed gets Infusion

August 6, 2008 - Halifax, NS - The Chronicle Herald - A Halifax pharmaceutical company has raised another $5.1 million to help it expand its business into the U.S.

Robert Cervelli, president and CEO of Origin BioMed, said Tuesday the Calgary venture capital firm Avrio Ventures Management Corp. was putting up $2 million; the province, through Nova Scotia Business Inc., was providing $2 million; and other investors were contributing $1.1 million.
Since its launch in 2001, the company has raised close to $10 million, of which $3 million has come from the province.

"This investment is about job growth at home, and it’s also more," Economic Development Minister Angus MacIsaac said in a release.
"Companies like Origin are helping bring the Nova Scotia brand to businesses and consumers around the world."

Origin BioMed manufactures and exports over-the-counter topical drug products, including Neuragen, which helps relieve pain caused by diabetic neuropathy, a breakdown of nerves.

Mr. Cervelli said the province’s financing will help drive the company’s North American market expansion and support the growth of Origin’s U.S. sales offices.

Peter MacNeil, manager of venture capital for Nova Scotia Business Inc., said Origin is a company with high growth potential catering to an unmet need in the marketplace.
As part of the financing, the agency has a seat on the board and sits on numerous corporate committees.

Origin BioMed employs 32 people at its head office in Halifax.
But Mr. Cervelli said the company expects to expand its employee base over the next two years.

Its production facilities are in Halifax, but it subcontracts some work to the Keata pharmaceutical plant in Sydney.

"Origin’s product line and go-to-market strategy has been validated through strong market demand," said Aki Georgacacos, general partner at Avrio Ventures and a member of Origin’s board of directors.

"We look forward to being a partner as Origin continues its impressive growth."

Some studies estimate the international market for neuropathic-pain products could top $4 billion.

Mr. Cervelli said the company has been successful at attracting investment because management has been patient and prepared to get on a plane and sell the company.

He said it recently got $500,000 from an angel investors group in California that he has been courting for close to two years.

"You have to do the groundwork," he said.
 
"We’ve already got people working on the next investment. You have to work ahead."

Origin opened an office in New York last fall to ease the foray into the American market.

Its products are now on the shelves of CVS and Rite-Aid, two of the top three American drugstore chains.

Mr. Cervelli is meeting next week with Walgreens, the other chain.
Mr. Cervelli said Neuragen is in 85 to 95 per cent of all drugstores in Canada and hopes there will be the same level of availability in the U.S. by the middle of next year.

He turned aside questions about revenue or profitability but said sales have been increasing by 250 to 300 per cent annually, with projections for this year indicate the trend is continuing.

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Origin BioMed gets Infusion

August 6, 2008 - Halifax, NS - The Chronicle Herald - A Halifax pharmaceutical company has raised another $5.1 million to help it expand its business into the U.S.

Robert Cervelli, president and CEO of Origin BioMed, said Tuesday the Calgary venture capital firm Avrio Ventures Management Corp. was putting up $2 million; the province, through Nova Scotia Business Inc., was providing $2 million; and other investors were contributing $1.1 million.
Since its launch in 2001, the company has raised close to $10 million, of which $3 million has come from the province.

"This investment is about job growth at home, and it’s also more," Economic Development Minister Angus MacIsaac said in a release.
"Companies like Origin are helping bring the Nova Scotia brand to businesses and consumers around the world."

Origin BioMed manufactures and exports over-the-counter topical drug products, including Neuragen, which helps relieve pain caused by diabetic neuropathy, a breakdown of nerves.

Mr. Cervelli said the province’s financing will help drive the company’s North American market expansion and support the growth of Origin’s U.S. sales offices.

Peter MacNeil, manager of venture capital for Nova Scotia Business Inc., said Origin is a company with high growth potential catering to an unmet need in the marketplace.
As part of the financing, the agency has a seat on the board and sits on numerous corporate committees.

Origin BioMed employs 32 people at its head office in Halifax.
But Mr. Cervelli said the company expects to expand its employee base over the next two years.

Its production facilities are in Halifax, but it subcontracts some work to the Keata pharmaceutical plant in Sydney.

"Origin’s product line and go-to-market strategy has been validated through strong market demand," said Aki Georgacacos, general partner at Avrio Ventures and a member of Origin’s board of directors.

"We look forward to being a partner as Origin continues its impressive growth."

Some studies estimate the international market for neuropathic-pain products could top $4 billion.

Mr. Cervelli said the company has been successful at attracting investment because management has been patient and prepared to get on a plane and sell the company.

He said it recently got $500,000 from an angel investors group in California that he has been courting for close to two years.

"You have to do the groundwork," he said.
 
"We’ve already got people working on the next investment. You have to work ahead."

Origin opened an office in New York last fall to ease the foray into the American market.

Its products are now on the shelves of CVS and Rite-Aid, two of the top three American drugstore chains.

Mr. Cervelli is meeting next week with Walgreens, the other chain.
Mr. Cervelli said Neuragen is in 85 to 95 per cent of all drugstores in Canada and hopes there will be the same level of availability in the U.S. by the middle of next year.

He turned aside questions about revenue or profitability but said sales have been increasing by 250 to 300 per cent annually, with projections for this year indicate the trend is continuing.