Artesian Therapeutics Inc., a Gaithersburg developer of drugs for cardiovascular disease, was sold to Canada's Cardiome Pharma Corp. in a deal valued at $32 million. Oxford Bioscience Partners, Artesian's largest shareholder, agreed to invest $7.5 million in Cardiome when the deal closes. In addition to Oxford, Artesian's shareholders included the Maryland Department of Business and Economic Development. The Gaithersburg firm has raised about $14 million in venture capital since inception.

Hanley Wood LLC, a Washington-based media company serving the construction industry, completed its sale to a group of investors led by J.P. Morgan Partners LLC and including members of Hanley Wood management and Wasserstein & Co. Hanley Wood founder Michael Wood stepped down as chief executive but will remain on the board. Frank Anton, formerly president, is chief executive. Hanley Wood publishes 22 trade titles, including Builder and Remodeling.


A&G Pharmaceutical Inc., a Columbia maker of breast-cancer tests, raised $2 million in a first round of funding from venture investors New England Partners of Boston, the Maryland Department of Business and Economic Development, and California's Crocker Capital.

Milestone Capital Management LLC, a Washington-based merchant bank, will pay $12 million for 84 company-owned restaurants in Colorado and Minnesota from Papa John's International Inc., making Milestone the third-largest franchisee of the Kentucky-based pizza chain.

Allied Capital Corp. of Washington provided $64.4 million to finance the buyout of Healthy Pet Corp., a Connecticut-based operator of veterinary hospitals. Allied Capital's investment bought a majority of the common equity of the company from Catterton Partners. Allied also provided senior secured debt and a line of credit.

Valhalla Partners, a Vienna venture firm, participated in a $7 million round of funding for database software maker EnterpriseDB Corp. of Edison, N.J. Charles River Ventures of Waltham, Mass., also invested. EnterpriseDB had previously been funded by a group of 17 angel investors who supplied $1 million in April, according to an SEC filing. Phillip Merrick, founder and former chief executive of Fairfax software firm WebMethods Inc., is a board member of EnterpriseDB.

Compiled by Terence O'Hara.