Merck is re-upping with Lycera, forming a second strategic partnership with the Ann Arbor-based biopharmaceutical startup that could bring the total investment between the two firms of nearly $600 million. Lycera is working to develop new autoimmune disease drugs that will help treat things like rheumatoid arthritis. It landed its first strategic partnership with Merck (worth $295 million in research investment) in 2011, which focused on therapies targeting the retinoic acid related orphan receptor.  The second partnership, announced this week, is distinct from the first partnership deal because the firms will spend up to $300 million to discover, develop and commercialize small-molecule therapies directed to selected novel targets being investigated for the treatment of a broad range of immune-mediated disorders. "The validates Lycera as the partner of choice," says Kathleen Metters, president & CEO of Lycera. "It was built on a very successful first collaboration (between Lycera and Merck)." Lycera is based in the North Campus Research Complex at the University of Michigan (formerly Pfizer's Ann Arbor campus) where it has a staff of 22 employees and a handful of interns. It has hired three people over the last year, including a chemistry project manager. These hires are strategic and often represent people relocating to Ann Arbor. Metters expects to continue making those sorts of strategic, high-end hires throughout this year. Lycera is also looking to continue its research into its proprietary products, which are independent from its partnerships with Merck, and develop new technologies in the autoimmune disease sector. "This is a very important area to continue investment in," Metters says. Source: Kathleen Metters, president & CEO of Lycera Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Tissue Regeneration Systems is close to announcing its Series B round of fundraising, an infusion of seed capital that is expected to be worth between $2 million and $2.5 million. The nearly 5-year-old medical device start-up is commercializing a skeletal reconstruction and bone regeneration technology. The University of Michigan spin-out is going for initial FDA approvals for its technologies and hopes to score those approvals within the next year. It also has scored a $1 million grant from the National Institute of Health. "We believe that achieving these objectives puts the company in position to raise larger amounts of capital," says Jim Fitzsimmons, president & CEO of Tissue Regeneration Systems. To really build the company we need to raise sufficient capital." The company is predominantly a virtually based firm but has offices in both Ann Arbor and Seattle. It has a team of five employees and the occasional intern. Three members of its team are based in Ann Arbor. Source: Jim Fitzsimmons, president & CEO of Tissue Regeneration Systems Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Beringea, along with Credit Suisse, is launching the second investment fund for Michigan Growth Capital Partners. Michigan Growth Capital Partners II is a $180 million fund focused on providing investment capital for start-ups based in the Great Lakes State. The fund, which is expected to be deployed over the next 4-5 years, looks to focus on companies in the following sectors: advanced materials and manufacturing, health care and life sciences, media and communications, specialized consumer goods, homeland security, IT and clean technology. "There has been a tremendous increase in the level of innovation that has been taking place across the state," says Charlie Rothstein, founder & senior managing director of Farmington Hills-based Beringea. Ann Arbor-based firms have been the beneficiary of a significant chunk of change in the first fund, which was launched in 2008. Some of the local big names include ReCellular (the largest cell phone recycler in the U.S.) and Sakti3, a University of Michigan spin-out working on battery-storage technology for electric vehicles. Both are based in Ann Arbor. The biggest prize is Accuri Cytometers, an Ann Arbor-based bio-tech start-up that was recently acquired for nearly $300 million. There is no guarantee any of the money from the second fund will end up with any Ann Arbor-are start-ups this time around. But considering the robustness of the venture capital industry and the entrepreneurial ecosystem in Washtenaw County it looks like there is amply opportunity for a significant amount of the the $180 million in the Michigan Growth Capital Partners II to land in Ann Arbor. Source: Charlie Rothstein, founder & senior managing director of Beringea Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.