Hot Investor Mandate: Healthcare-Focused Evergreen Fund Invests in Life Science Technologies Addressing Orphan & Rare Diseases, with Strong Interest in Novel Therapeutics

18 Oct

A healthcare-focused, evergreen incubator fund based in the USA is now focusing on orphan drugs and rare diseases via a holding company-fund business model pioneered by the firm in 2009 for common diseases. The firm collaborates with an affiliate on projects that are not in the orphan diseases space.

The firm has a high threshold for working with companies and makes most of its investments in companies with which there is some type of relationship, but it is open to new opportunities as well on a case-by-case basis. The firm is mainly focused on therapeutics and will consider platform technologies that are therapeutic focused e.g. digital therapeutics. The firm’s investment size varies widely depending on the needs of the company. The capital structure depends on the financing round, with convertible notes being preferred for seed rounds and equity for everything else (no debt financing) with the preferred entry point being seed or Series A.

The firm only co-invests, and does not lead rounds unless the key principals are part of founding entrepreneurs. The firm has some limitations on geographic exposure and will consider companies in the United States, Canada, Singapore, Australia, Hong Kong, Spain, the Netherlands or the United Kingdom.

The firm will invest in therapeutics (no specific indication) that treats orphan diseases with strong scientific rationale. For the firm, not all orphan indications are rare or ultra-rare since the future is fragmentation of common indications characterized through genomics or proteomics profile. The firm is interested in clinical stage assets starting from Phase IIa but on a case by case basis earlier stage assets that are validated in pre-clinical models.

In the past, the firm has invested in therapeutics (a single asset or a company with multiple products), which treat unmet needs in glaucoma, thrombosis (in particular patients with prosthetic heart valves and renal dysfunction), atrial fibrillation, inflammatory disorders (such as ulcerative colitis), gastrointestinal disorders (such as constipation, reflux disease) as well as a small molecule to treat neurovascular disorders such as Alzheimer’s disease, wet-age related macular degeneration.

The firm will consider clinical-stage therapeutics (or with those with other therapeutic modalities) to treat orphan disease including small molecules, and novel biologics (including “biobetters”) that are likely to obtain or already have issued composition of matter patents (and/or method of use patents) and platform technologies (that could generate novel drug candidates for orphan diseases), repurposed drugs with issued IP, biosimilars and digital therapeutics. The firm has interest in diagnostics, medical devices (for drug-device combination only) or digital health (data analytics for diagnosing diseases) as long as the focus is on orphan diseases. Any areas outside these, the firm collaborates with an affiliate to enable set-up and/or growth.

The firm does not have any specific management team requirements, and will work with all entrepreneurs. A board seat is not always required, but is not uncommon.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com.

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