Archive | July, 2013

Hot Life Science Investor Mandate 1: State Fund Seeks Biotech R&D, Others for Allocations

26 Jul

A fund based in the Central United States, which has around $400 million under management, was set up by its state government in order to attract start up companies, and is currently seeking new investment opportunities in the life sciences space.

The majority of the funds investments (53%) are in the life sciences space, and since 2005, the fund has dedicated around $900 million to the sector. The fund typically invests in 10-20 companies a year, and their allocation size ranges from $250,000 to $5 million. The firm is most interested in the suppliers and engineering space, biotech therapeutics and diagnostics, and biotech R&D services. The firm is specifically interested in the medical devices space within the suppliers and engineering space, and is seeking firms focused on genomics in the biotech R&D space.

In terms of biotech therapeutics and diagnostics firms, the fund is fairly opportunistic in terms of subsector and indication, however does have a special interest in small molecules. The firm will consider pre-revenue firms, as well as firms that have products on the market. With that being said, the firm is agnostic in terms of the product’s development phase.

Hot Life Science Investor Mandate 2: Venture Philanthropy Targets Neuromuscular Diseases

26 Jul

The venture philanthropy arm of a larger organization is currently looking for new companies in the life science space to invest in, and anticipates on investing in at least two new firms this year. The firm has an evergreen structure, meaning that funds come directly from its parent organization, and can be deployed as needed. The fund has over $100 million in total assets currently, and was allotted $4 million in 2013 for new investments, and typically makes equity investments ranging from $500,000 to $3 million.

The venture arm is currently looking for firms in the biotech therapeutics space. They are especially interested in companies that are developing therapeutics that treat diseases that fall within the realm of neuromuscular diseases. There about 40 different diseases within this category, but some of the specific areas of interest for the firm include multiple sclerosis and ALS, but they will consider therapeutics treating any indication within this subsector. They invest internationally, and will consider firms based in the US, as well as those based anywhere else around the world.

Primarily investing in pre-revenue companies, the firm has no criteria in terms of revenue or EBITDA. The firm will invest in firms that have products ranging from proof of concept in phase I to phase III.

Hot Life Science Investor Mandate 3: PE Group with Dry Powder Seeks Wide Range of Life Science Opportunities

26 Jul

A private equity group with offices worldwide is currently deploying assets from its seventh fund, which closed at nearly $400 million, bringing the firm’s total assets under management to over $1 billion. With that being said, the firm has been very actively seeking and investing in new companies in the life sciences space, and still has a great deal of dry powder on hand from its seventh fund. The firm made 3-4 new investments within the last two months, and anticipates that the group will be investing at around the same pace in 2013 if they continue to source compelling opportunities in the space and also expects that their current fund’s portfolio will consist of around 18-20 companies in total. The firm typically allocates around $5-15 million, but has written tickets ranging from $2-40 million in the past.

The firm is interested in biotech firms creating therapeutics, medical technology companies that develop medical devices, as well as specialty pharmaceutical companies. The firm is especially interested in medical device companies that are creating ophthalmology or instrumental neurology products. In the biotech therapeutics and diagnostics space, the firm is opportunistic in terms the indication the product that a firm is targeting, however is especially interested in firms that are developing drugs for the treatment of orphan diseases.

The firm plans to allocate two-thirds of the group’s seventh fund to US based firms and one-third to firms located in China. In China, they provide firms with growth capital while in the US the firm has more of a venture capital approach to investments. Accordingly, the firm invests in earlier stage pre-revenue companies in the US and later stage companies in China that are generating revenue. With that being said, the firm is looking for US biotech companies whose products are in early stage phase II of clinical trials or later, and in the medtech space the firm’s product must be undergoing clinical trials to be considered.

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