April 19, 2011
Drug sale brings CincyTech first exit
Venture development firm and Chamber partner CincyTech has garnered its first exit with the sale of a drug-licensing agreement from Blue Ash Therapeutics to Forest Laboratories on April 19. CincyTech will receive 10 times its original investment – $2.5 million – which will be distributed to the partners in the fund: Fort Washington Capital Partners, the Health Foundation of Greater Cincinnati, Cincinnati Children’s Hospital Medical Center, and the Castellini Foundation. (Ohio Third Frontier also has money in CincyTech’s Fund I but does not receive a payout.)
CincyTech invested $250,000 in Blue Ash Therapeutics in January 2010 after spending a year working to license the drug-development program for azimilide from Procter & Gamble Pharmaceuticals and then Warner Chilcott, finding co-investors and finding a CEO, Greg Flexter, to work with former Procter executive and scientist Kevin Malloy.
The deal is the first “exit” – or cash out – for CincyTech, which has invested $7 million in 21 companies since May 2007 and has helped attract $140 million in co-investment and follow-on money to these companies.
Read more on the CincyTech Ventures site