Archive | October, 2013

Hot Life Science Investor Mandate 1: Family Office to Make Several Investments in Coming Months

31 Oct

A family office based in the Eastern US manages 4 funds for a total of approximately $400 million in assets under management. They are currently investing out of their 4th fund, which has $100 million focused exclusively on the life sciences. The office looks to provide up to $5 million of preferred equity capital in the initial investment round, and up to $10 million over the life of the investment. They are very flexible in terms of period to exit, but generally look to exit in around 5 years. They plan to make 2-3 investments over the next 6-9 months and will consider companies globally.

The family office is currently looking for companies developing Therapeutics, Diagnostics and Medical Technology. Within therapeutics, which is their primary focus, companies with an asset in Phase II are currently of most interest. However, they will consider companies with assets as early as 2 years away from human trial data. Within diagnostics, they generally require that the diagnostic be at the commercial stage or have significant positive clinical data. For medical technology they require that the device have some in-human data before being considered for investment. Also, the firm is not interested in medtech companies developing devices that are incrementally improved versions of devices already on the market, groundbreaking technologies and platforms are the firms focus in this area.

Hot Life Science Investor Mandate 2: Virtual Pharma Could Acquire Three Companies Within a Year

31 Oct

A virtual pharmaceutical development company based in the Western US is looking to in-license pharmaceutical assets and bring them through clinical proof of concept, and then sell them to large pharmaceutical companies. The firm is looking for candidates that require less than 3.5 years and $15 million to human proof of concept. They also look to invest in assets – not companies – and as such, they are able to consider assets developed by companies anywhere in the world. The firm is currently positioned to acquire up to 3 assets in the next 6-9 months.

The company is looking to in-license both small and large molecules in either the pre-clinical stage or Phase I of clinical development. For assets in the pre-clinical stage, the firm is not interested in lead optimization projects, and requires that the asset be within at least 12-18 months of entering Phase I. The firm’s current pipeline includes therapeutics targeting the indications of Dermatology, Type 2 Diabetes, Pulmonary Disorders.

The company looks to take a majority equity stake in its chosen assets, leaving the remainder of equity in the hands of the originator.

Hot Life Science Investor Mandate 3: Venture Arm Focuses on Companies Developing New Drugs, Devices

31 Oct

The corporate venture arm of a larger foundation based in Europe has approximately $35 billion in AUM, provides (equity only) seed and venture capital to development stage companies, and also takes significant ownership positions in well-established companies within life science and biotechnology.

The firm will invest at any stage of development – seed, venture, and growth. They also make late-stage investments in public/private companies with a positive cash flow, and can allocate up to $40M or more depending on specific cases, but generally allocate between $5M and $20M. The firm seeks companies that are based in North America and Europe, but has no current mandate for the number of allocations it plans to make.

The venture arm is opportunistic in the life sciences space. Specifically, they focus on companies that specialize in the development of new drugs, new procedures for diagnosis and control of diseases, development of medical devices and instruments, and industrial biotechnology. They are very opportunistic in terms of subsectors and indications.

Currently, this particular firm is active in companies developing therapeutics and diagnostics targeting cardiovascular diseases, infectious diseases, immune disorders, diseases of the nervous system, mental and behavioral disorders, and cancer. Additionally, they have invested in companies developing therapeutics based on small molecules and antibodies. The firm has also made venture investments in companies developing medical technology in the area of reusable instruments, wound care, single use devices, therapeutic radiation devices, and active implantable devices.


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