Novalar raised funds by focusing on niche dental products

Dentists usually get a bad rap — from the torturer in “Marathon Man” to the bumbling menace in “Finding Nemo.”

But one San Diego biotech company, Novalar, may be able to help revamp that image with its innovative product: OraVerse.

The Carmel Valley company, a specialty pharmaceutical company that partners directly with dental professionals, premiered OraVerse in February touting it as the first and only dental anaesthesia reversal agent. The product reduces the time patients have to endure the numbness of the mouth and tongue that accompanies most routine dental procedures - such as filling that cavity.

Clinical studies indicate that patients return to “normal” in approximately half the time it would take without OraVerse.

“It reverses the numbness, so people can stop drooling and slurring and get back to their day,” said Donna Janson, president and CEO. “It’s the only product that can be used immediately to get an immediate result.”

Huge market

According to Janson, the potential market opportunity for OraVerse is considerable, with approximately 275 million cartridges of local dental anesthetic administered annually in the United States. There are currently no known competitors to OraVerse, and market research demonstrates strong interest from both dentists and consumers, Janson added.

The company has contracted with Novocol Pharmaceutical of Canada, Inc., the leading North American supplier of dental anesthetic cartridges, to manufacture the groundbreaking product.

How it started

Novalar began with a simple conversation between dentist Howard Katz and his patient, Dr. Eckard Weber of the venture capital firm Domain Associates. What started as a challenge to reverse local dental anesthesia soon became a mission for Weber when he founded Novalar Pharmaceuticals in 2000 as a virtual company.

“Novalar is a homegrown San Diego invention,” said Janson. “It is really a very elegant, simple story to which people can relate.”

Novalar obtained its initial funding in 2002 for studies on OraVerse, and completed the Phase II study in 2004, when it moved from cyberspace to a 4,600-square-foot office in Carmel Valley with three employees.

Current expansion

The company closed a $30-million round of financing at the end of 2007 to obtain the capital they needed to see OraVerse through the final FDA approval process and initial launch. Now, the company has 58 employees and is expanding its office to around 12,000 square feet.
Currently in the pipeline is a new root canal therapy that will reduce painful infections.

Reasons for funding success

Janson said that the key to the organization’s successful 2007 fund-raising was in part because they were at the late stages of approval, with strong data proving that the product worked. In addition, Novalar boasted a strong marketing team.

“It didn’t look like there would be any problems or risk of not getting approved,” said Janson.
At the same time, the company is careful with its funds. “We know we have to be prudent with our funds,” said Janson. “We know it is not the ideal time to be out there looking for funding. Since we are a specialty pharmaceutical company, we are focused, and the more focused you are, the leaner you can be.”

U.S. and worldwide rollout

Initially, the team is focusing on a successful launch in the United States, beginning in six regions that were determined to have the highest density of dentists, including California, New York, Florida and Washington, D.C.
In six to eight months, the company will look at the areas of growth and determine if there is the right mix or if readjustments are needed. While Janson would not reveal specific numbers or projected growth, she said that eventually Novalar expects to have 60 sales representatives throughout the country and is looking to expand into Europe, Canada and Mexico.

See more stories:

Genoptix listened to the market to hone its products
PhotoThera raises $50 million for stroke clinical trials
San Diego’s biotech companies tighten belts, but some thrive

Shannon Rose Strybel is a freelance writer based in San Diego.

Tags: SDNN

This entry was posted on Monday, June 29th, 2009 at 2:36 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.