Lack of Venture Funds Forces Bio-Entrepreneur to Leave Arizona - PhoenixCEOCFO.com

Lack of Venture Funds Forces Bio-Entrepreneur to Leave Arizona

Dr. Dietrich Stephan was the Director of Nuerogenomics at Arizona's Translational Genomics Research Institute's (TGen) for the past five years. He is leaving Arizona for California because that is where his new company, Navigenics, is being funded.

Stephan told the Arizona Republic that the reason he is leaving Arizona and TGen is the lack of available venture capital. He said he could not attract sophisticated investors in Arizona for Navigenics and another company, Amnestix, which develops drugs for memory-related disorders. Amnestix was developed from research that he did at at TGen with his colleague Matthew Huentelman, who remains at TGen. A German company acquired Amnestix.

Navigenics received funds from Silicon Valley venture-capital firms Kleiner Perkins Caufield & Byers, MDV-Mohr Davidow Ventures and Sequoia Capital. Navigenics offers genetic tests for more than 20 diseases such as diabetes, colon cancer or Alzheimer's disease. Customers who are willing to pay an up-front fee of $2,500 and an annual fee of $250 can find out their genetic likelihood of contracting these diseases.

Gene tests one day will be as common as blood-pressure checks. We can be proud that it was developed in Arizona. But it would be better if we created Arizona-based venture firms that would fund Arizona firms that would stay in Arizona.

John Laub is the Chairman of Phoenix CEO-CFO Group.

1. "Departing Scientist Cites Funds." Ken Alltucker. The Arizona Republic. August 14, 2008.

2. www.tgen.org

3. www.navigenics.com