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Fe3 Medical gets $3.5M infusion
August 9, 2016

By Peggy O'Hare, STAFF
Express-News

The state of Texas has invested $3.5 million in a San Antonio medical technology company developing a skin patch to provide iron to patients suffering from iron-deficiency anemia.

The state's latest investment in Fe3 Medical was made by the Texas Treasury Safekeeping Trust Co. The Texas Legislature appropriated $12 million to that trust during the last legislative session to preserve the state's ownership positions in companies that had been funded by Texas' now-abolished Emerging Technology Fund, said Lauren Willis, a Texas Comptroller's Office spokeswoman.

The Emerging Technology Fund was abolished by the Legislature last year following criticism that it rewarded companies tied to some of former Gov. Rick Perry's donors, and lacked accountability and transparency. Perry had dismissed that criticism, however, and credited the program with creating jobs.

The $3.5 million shot in the arm announced Monday brings Fe3 Medical's total Series B funding to $14.5 million, according to a statement city officials released announcing the news.

That money will be used for product development, clinical trials and submissions to pursue regulatory approval to market the company's skin patch in the United States and Europe, the statement said.

The company has raised around $22 million so far in all of its investment rounds.

Fe3 Medical is one of three companies that life sciences research and development outfit InCube Labs relocated from the Silicon Valley to San Antonio in exchange for $10 million in combined incentive grants awarded in 2010. That sum included a $2.8 million investment from the Emerging Technology Fund.

InCube Labs is contractually obligated to create 50 jobs in San Antonio by August 2020 that pay an average annual salary of at least $50,000.

As of Monday, InCube Labs had 15 full-time employees in San Antonio, said Stephanie McGrory, vice president of business development. Ten of those employees work on the Fe3 Medical project, she said.

"We are delighted that the state of Texas has remained engaged over the years and that they continue to be excited about Fe3's potential to dramatically improve the lives of millions of iron deficiency anemia patients who cannot tolerate oral iron," Fe3 Medical CEO Mark Sieczkarek said in a statement.

San Antonio City Manager Sheryl Sculley said the state recognizes the "potential longterm value" of the company.

"We are pleased with the progress Fe3 is making and the continued contributions of InCube Labs toward growing our health care and bioscience industry," Sculley said in a statement.

Other investors in Fe3 Medical besides the state are Jianmin Pharmaceuticals, Hua Gai Medical, PingAn Ventures and InCube Ventures.

pohare@express-news.net

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