5AM Ventures has plans for $240 million in the biotech investment sector

As businesses are being created in the industry, biotech sponsor 5AM Ventures has its eye on the $240 million, putting together its fourth amount dedicated to a specific purpose.

The investor from San Francisco and Waltham, Massachusetts is raising funds again, according to documents filed with the Federal Securities and Exchange Commission, based on a $159.2 million fund closed in 2009. In accordance with the mission of 5AM, the last catch will go to newly created companies specializing in natural sciences that need funds after the onset of the economic downturn. In 9 months of 2013, only 104 initial investments were made in the field of biotechnology, which, according to PricewaterhouseCoopers and the National Association of Entrepreneurial Capital, is the lowest figure in the last 17 years.

The 5AM investor has approximately 435 million US dollars at his disposal, and his portfolio includes outstanding innovative companies, including Ambrx, Cleave Biosciences, as well as Relypsa, which plans to place its shares on the market soon. Among the successes of 5AM are Pearl Therapeutics, acquired by AstraZenec this year for US$ 1.15 billion, and Marcadia, which Roche acquired in 2011 for US$ 537 million.

While the temperature in the market of biotech commercial enterprises does not rise high, most of the staunch adherents of this industry do not look particularly restless. 5AM is not the only investor who decided to "reboot" by combining Frazier Healthcare and the fund of 377 million US dollars closed to it this month, as well as the giant OrbiMed and the amount of 300 million US dollars opened by it in August. Third Rock, a major biotech investor, closed $516 million in its latest fund this year, combining Atlas Venture and the $265 million it raised.

Evgeniya Ryabtseva
Portal "Eternal youth" http://vechnayamolodost.ru based on FierceBiotech materials:
5AM Ventures plots $240M fund as biotech investments crater.

25.10.2013