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Ophthalmic Drug Firm Alimera Sciences Gets $31.8 Million in New Venture Capital

Posted on: Wednesday, 30 November 2005, 12:00 CST

By Andy Miller, The Atlanta Journal-Constitution

Nov. 30--Alimera Sciences, an emerging pharmaceutical company, said Tuesday it has secured $31.8 million in new venture capital -- one of the biggest such financings for a Georgia life sciences company.

Much of the money will be spent on the Alpharetta-based company's development of a drug to treat swelling of the retina in people with diabetes. That drug, called Medidur, is being tested in clinical trials, required before possible approval by the U.S. Food and Drug Administration.

That drug, if approved, could generate annual sales of up to $400 million, said Dan Myers, president and CEO of Alimera Sciences, an ophthalmic pharmaceuticals company that is privately owned.

The new funding, Myers said, "is a good signal that the company is heading in the right direction."

"Now we feel like the company is pretty well capitalized for the next 24 to 36 months," he said.

Four venture capital firms last year collectively sank about $26.8 million into Alimera Sciences, and the same four put in about $20 million of the latest financing, with a fifth investor, Venrock Associates, chipping in $10 million.

Founded in 2003, Alimera Sciences is marketing an artificial tear drug called Soothe for relief of dry eye.

It also expects to launch two more over-the-counter pharmaceuticals next year -- one to treat patients after Lasik surgery, another an allergy product.

Susan O'Dwyer, technology industry marketing manager for PricewaterhouseCoopers in Atlanta, said the $31.8 million is one of the biggest venture capital fundings for a Georgia life sciences company, which she defines as biotech and medical device companies.

Life sciences, nationally, is one of the highest-funded sectors by venture capitalists in the last two years, she said, adding that "Georgia hasn't seen as much activity in life sciences as other areas of the country."

A group representing the life sciences industry in Georgia agreed that the Southeast has lagged the West and Northeast in terms of venture capital funding.

"It's a matter of visibility," said Charles Craig, president of the Georgia Biomedical Partnership. But he added that venture capital interest in North Carolina, Georgia and Florida is increasing because of the top-notch science in their universities, and because "they are great places to build companies."

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Source: The Atlanta Journal and Constitution

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