Please login to the form below

Not currently logged in
Email:
Password:

VC raises new €270m fund for European biotechs

The money will mostly go to companies working on novel therapies

Life sciences venture capital company Forbion has raised €270m in funding for European biotechs, in a sign that investment cash is returning to the sector.

Sander SlootwegThe German-Dutch fund says the new fund – its fourth – was oversubscribed by around €20m and like its predecessors will go mainly (80%) to EU and UK companies working on novel therapies, medical devices and diagnostics, with the remainder looking at opportunities in North America.

Managing partner Sander Slootweg (pictured) – who will manage the new fund alongside Geert-Jan Mulder and Martien van Osch, said that the fund comes against a backdrop of “undersupply of capital for European development-stage life sciences investment”.

“We continue to see the opportunities for superior returns,” he asserted.

Forbion IV is a step up from its last fund, which raised €183m in 2016 with 70% earmarked for Europe companies, and takes the total managed by the company to almost €1bn. According to the VC it will have “an even sharper focus on biotech” and will be used to support around 15 companies, ideally ten in the growth phase a five brand new start-ups co-founded by Forbion. There could also be more to come, with the new fund not due to fully close until the autumn.

Forbion’s fundraising comes shortly after UK- and US-based VC Abingworth raised $315m for another oversubscribed fund destined for investments in early- to late-stage European and US life science companies.

Forbion has chalked up a number of successful exits from its earlier holdings, including the sale of Dezima Pharma to Amgen which netted €1.55bn and the $7bn takeover by AstraZeneca of Acerta, the developer of blockbuster-in-waiting acalabrutinib for lymphoma.

It currently has around 25 companies in its portfolio, including Dutch gene therapy specialist UniQure, UK women’s health start-up KaNDy Therapeutics and US biotech Argos Therapeutics which as an RNA-based kidney cancer drug candidate in late-stage testing.

With a surge of M&A deals involving biotech companies and big biopharma players already this year after a relatively quiet 2017, VC investors are seeing more opportunity to make money on lucrative exit deals. Ernst & Young predicted earlier this year that 2018’s biotech M&A tally will comfortably exceed last year’s $200bn value.

Forbion says its fourth fund will provide “substantial initial stakes of 20-50%, looking to take lead positions and work alongside entrepreneurial management teams” and that it already has a number of investment candidates in mind.

Article by
Phil Taylor

11th July 2018

From: Sales

Share

Tags

Featured jobs

Subscribe to our email news alerts

PMHub

Add my company
Synergy Vision

Synergy Vision believe in delivering medical communications that make a difference to healthcare professionals and patients. Our synergy of pharma...

Latest intelligence

Developing advocacy in the pharmaceutical industry.
The importance of advocacy programmes...
GDPR and events. What does the pharma industry need to know?
Many people in the pharma industry still aren’t following the rules set out by the GDPR when it comes to running events and attending tradeshows. But with eye-watering fines for...
Digital trends in B2B sales - how far behind is Pharma?
The modern approach to B2B sales is data-driven, and enabled by digital tools....

Infographics