Abingworth raises $53M for drug investment
the initial Abingworth BioEquities Fund (ABE) has raised $53
million (€44 million) to invest across the life sciences field
including human therapeutics.
According to Abingworth, the fund will invest in under-appreciated quoted stocks that have the potential to produce high returns over a 2-4 year holding period. As well as investing in small and mid-cap stocks in the open market, ABE will also invest in public companies through PIPEs and negotiated transactions.
Commenting on the possibility of investment opportunities, Yvonne Alexander, consultant for capital markets at Weber Shandwick, told DrugResearcher.com: "The range is quite broad on purpose as VC/s public funds will invest in any number of innovative approaches and it is impossible to be specific what these may be."
The ABE is the seventh life sciences fund dedicated to investments in quoted stocks. Abingworth has already invested in quoted life sciences companies through previous life sciences funds. This additional capital brings the total amount available for investment in quoted stocks to $135 million.
Dr Joe Anderson, an Abingworth Partner, and his team are set to take charge of the fund. He said: "Many development stage companies in life sciences have outstanding growth potential but their shares are often mis-priced due to increasing stock market volatility, diminishing coverage of earlier stage companies by equity analysts and the pressure on public mutual funds to satisfy short-term oriented performance benchmarks."
"ABE has been structured to approach these stocks with a venture mind-set and allow for a longer-term investment view. Demand for new medicines is increasing steadily as populations age and pharmaceutical companies seek to fill their product pipelines," he added.
The product pipeline has become a major sticking point within the industry as a factor that has impeded drive and growth. Despite the recent difficulties the pharmaceutical industry has had in driving innovation and identifying enough drug candidates through their pipelines, Alexander said: "That is why we have seen an increase of the amount of in-licensing/alliances put in place with biotechs by pharmas."
"It is these biotechs that offer innovative approaches and are therefore, as Abingworth invests into these biotech companies, it is investing in the future developers of human therapeutics," she added.
Abingworth have an extensive history of investing in areas of the biotechnology and the medical field. The company has particularly invested in businesses addressing product development opportunities in specific disease areas.
Previous Abingworth investments have included Aurora Biosciences, Aviron, GelTex Pharmaceuticals, Genetic Therapy, Gilead Sciences, Healtheon, Pharmacopeia and 3-Dimensional Pharmaceuticals.
