TVM Capital Life Science has held the final closing of its latest fund, TVM Life Science Ventures VII, raising more than USD200 million from a broad mix of investors including Teralys Capital and Eli Lilly and Company.
Other investors include the Business Development Bank of Canada, the Minnesota Life Insurance Company, CD Venture and FondAction. The fund also attracted significant investment from other pharmaceutical companies such as Bukwang Pharma of South Korea.
TVM Life Science Ventures VII is a collaboration between TVM Capital Life Science and industry to finance and access innovation, in addition to being a way to manage risk and share reward. The fund acquires early-stage molecules from pharmaceutical or biotechnology companies around the world, and then finances a virtual project-focused-company (PFC) for each of these molecules. The objective is to develop each molecule through proof-of-concept (one or more clinical studies designed to determine whether a molecule has the potential to work in patients). If the molecule shows efficacy, the molecule and/or development rights are offered for sale to biopharmaceutical companies.
The project-focused-companies have the option to select Chorus, a virtual drug development organisation within Lilly's global external research and development group. Chorus provides access to scientists who can produce high-quality data packages through the implementation of lean and focused drug development plans, at the direction of the project-focused-companies, that help to determine proof-of-concept.
"The high-quality of the investors in TVM Life Science Ventures VII is a testament to TVM Capital's strong 30-year track record of identifying promising life sciences projects and companies and supplying them with access to the scientific, capital and management resources critical for success," says Dr Hubert Birner, a managing partner of TVM Capital's life science practice. "The fund invests mainly in Canada, the US, Germany and Western Europe, and is advised by a dedicated team of investment professionals based in Montreal and Munich."
"We are excited by the potential for this novel venture fund, working with a diversified group of project-focused-companies, to help address significant unmet medical needs," says Darren Carroll, vice president of corporate business development at Lilly. "Lilly has pioneered the use of independent external financing sources and innovative business models, such as the collaboration with TVM Life Science Ventures VII, to supplement our core R&D investment strategy, leverage research investments, and to help reduce the risks of research."
