Verus Pharmaceuticals Inc. 's monster $98 million Series A is certainly notable for its size and for the fact that—at the time—Verus boasted no IP, technology, or products. Verus' ability to raise funds to make a serious play in pediatric medicine is also a reminder that despite the proliferation of the specialty pharma model there are still untapped, high-growth niche areas where businesses can be built with few serious competitors, and where a management team with a successful track record can attract big money. And importantly, the June 2005 financing is another signal that investing in the highest quality start-up biotech investments is increasingly a game for VC firms with deep pockets.
Verus' Childs' Play Brings in $98 Million A Round
With a goal to focus on pediatric respiratory disease and allergy, several ex-Dura Pharmaceutical executives were able to attract $98 million in Series A funding without having technology, products, or IP. The company's June 2005 financing is another signal that investing in the highest-quality start-up biotechs is increasingly a game for VC firms with deep pockets.
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