Dec 01 2010
CUMBERLAND, Rhode Island – PreCision Dermatology Inc., a company focused on developing, manufacturing, acquiring and marketing a broad portfolio of innovative dermatology products, today announced it was formed as the result of the spin-out of Onset Therapeutics, a wholly owned subsidiary of Collegium Pharmaceutical, Inc. PreCision Dermatology also announced the close of a Series A financing led by life science private equity investor Essex Woodlands. Existing Collegium Pharmaceutical investors including Boston Millennia Partners, Frazier Healthcare and Westfield Capital Management also participated in the financing. Financial terms were not disclosed.
“We are excited by the opportunity to build a significant business with a unique core technology and approach to dermatology,” said Jeffrey M. Nugent, founding President and CEO of PreCision Dermatology. “We are focused on improving the health and appearance of individuals’ skin.” Mr. Nugent brings deep experience in skin care. In addition to a number of recent board positions, Mr. Nugent served as President and CEO of Revlon and President and CEO of Neutrogena during the high growth period that followed Neutrogena’s acquisition by Johnson & Johnson. Prior to that, Mr. Nugent held a number of leadership roles within Johnson & Johnson across several of their businesses including Pharmaceuticals, Medical Devices, and health related Consumer Products.
Through its Onset division, PreCision Dermatology gains an experienced management team, ownership of the proprietary Delevo™ foam technology platform and an innovative product line formulated to improve patient compliance and clinical outcomes. In addition, the acquisition will bring to PreCision Dermatology an extensive intellectual property portfolio, a GMP manufacturing facility and an established national sales force focused on marketing to dermatologists.
“Our vision is for PreCision Dermatology to become a significant player in the growing dermatology and skin care markets and these two transactions will accelerate our timeline to achieve that goal,” said Mr. Nugent. “On the financial side, we are fortunate to have Essex Woodlands as our lead investor and look forward to them providing us with real strategic advantages in light of their unparalleled track record in the life sciences industry.”
“The $6 billion US dermatology industry is projected to continue to grow by above average rates and offers tremendous opportunity to companies with innovative products that physicians agree will improve patient care,” said Immanuel Thangaraj, Managing Director of Essex Woodlands. “Jeff Nugent and his team bring an impressive track record of performance to PreCision Dermatology and we expect them to quickly realize the Company’s sizable market opportunities.”
“Skin disorders have a dramatic impact on patients’ overall health and quality of life and the specific formulation of a product can have a significant positive effect on patients’ compliance,” said Dr. Zoe D. Draelos, consulting professor of Dermatology at Duke University School of Medicine and editor-in-chief of the Journal of Cosmetic Dermatology. “Newer approaches to formulating dermatologic foams bring a significant advantage that results in higher levels of patient preference and may have utility throughout dermatology and skin care.”
Michael Heffernan, CEO of Collegium and Founder of Onset Therapeutics will continue to work with the PreCision Dermatology management team and will be a member of its Board. “Jeff is a respected leader in the dermatology, skin care, and aesthetics markets and I am looking forward to working closely with him to create a new powerhouse in the specialty dermatology market,” said Mr. Heffernan.
About PreCision Dermatology, Inc
Headquartered in Cumberland RI, PreCision Dermatology is a fully-integrated dermatology company with a mission to deliver innovative therapies to doctors and patients that demonstrably improve the care of skin. PreCision Dermatology will expand quickly through acquisitions, in-licensing, co-marketing opportunities as well as internally generated therapies. The Company’s Onset Therapeutics (www.onsettx.com) division develops and markets eleven products based on its proprietary DELEVO™ foam technology platform.
About Essex Woodlands
With $2.5 billion under management, Essex Woodlands is one of the largest and oldest venture capital and growth equity firms pursuing investments in pharmaceuticals, biotechnology, medical devices, health care services, and health information technology. Since its founding in 1985, Essex Woodlands has maintained its singular commitment to the healthcare industry and has been involved in the founding, investing, and/or the management of over 100 healthcare companies ranging across all sectors, stages and geography. The team is comprised of 25 senior investment professionals with offices in Palo Alto, Houston, New York and London. For more information please see www.ewhv.com.
About Boston Millennia Partners
Boston Millennia Partners is a private equity firm which has managed investment partnerships with more than $700 million in capital. From its offices in Boston, Millennia invests in high-growth business in healthcare, life sciences, and business services industries. Typical investments range from $5 to $20 million. The managers at Millennia have funded over 120 companies in the U.S. private equity market since 1980. For more information, please visit http://www.bmpvc.com/.
About Frazier Healthcare Ventures
Founded in 1991, Frazier Healthcare Ventures is a leading provider of venture and growth equity capital to emerging biopharma, medical device and healthcare service companies. With over $1.8 billion under management, Frazier Healthcare has invested in over 100 companies across the entire development spectrum. From seed stage venture investments to leveraged recapitalizations of cash generating companies, Frazier Healthcare Ventures has established itself among entrepreneurs and seasoned executives as a preferred partner to create and grow successful healthcare companies. For additional information on Frazier Healthcare Ventures, please go to www.frazierhealthcare.com.
About Westfield Capital Management
Westfield Capital Management is an SEC-registered investment advisor dedicated to providing quality investment management services to institutions and wealthy individuals. Westfield supervises domestic growth equities, with products focusing on each segment of the capitalization spectrum. Our team of 14 investment professionals employs an in-depth, fundamental research process to uncover growth opportunities not yet fully appreciated by the market. Our assets under management as of September 30, 2010 were $12.8 billion. For additional information please go to www.westfieldcapital.com