German companies profit from current investors’ appetite in Life Sciences. After taking a long break, the international Life Sciences venture capitalist firm TVM Capital announced its comeback with a multimillion financing round. Munich-based leon-nanodrugs GmbH is set to profit. TVM Capital led the €18.5m Series A round with participation from Signet Healthcare Partners (USA), LifeCare Partners (Switzerland), CD-Venture (Germany), Albany Private Equity Holding (Australia), and a non-disclosed Family Office from Germany. Another international investor also starts to look for investment opportunities in Germany: US-based early-stage investor MPM Capital has recently opened an office in Munich.
After a long time – the German-Canadian company’s last investment in Germany was in 2009 – TVM Capital will now start intensively looking around Germany again, stressed Hubert Birner from TVM Capital during the congress “Biotech made in Germany” at the Innovation and Start-Up Center (IZB) for Biotechnology in Martinsried, Bavaria. On occasion of its 20th anniversary on 17th July, around 100 guests from business and politics came together to discuss the current financing trends in the German biotech industry. Prof. Domdey, BioM, introduced the long history of Munich Biotech cluster starting in the 90s with first foundations of Morphosys, Mikrogen, Medigene and Micromet - the fab4 "M" in Munich´s biotech scene. Birner announced their financing in the munich nanotechnology company: "We are very pleased to reinforce our footprint as a lead-investor in the German market, especially as we are joined in this financing by reputable investors who have co-invested with us over many years in Germany and abroad”. Leon-nanodrugs develops novel oral and parenteral formulations by using GMP (Good Manufacturing Practice) compliant nanotechnology to improve bioavailability, solubility as well as dissolution rates. The company will use the proceeds of this Series A financing to expand its profitable service business and to enter into high margin co-development deals with pharmaceutical partners. An additional €3m investment is expected later in 2015.
TVM Capital: A total of €250m available
With its latest fund TVM Life Science Ventures VII, the Munich and Montreal-based venture capital company has attracted significant investors from Canada. Overall, there is a total volume of approximately $250 million available, some of which will now flow into the German biotech sector. The aim is to explicitly collect even more funds for German investments. According to Birner, additional financings with TVM-participation in Munich and Switzerland are also on the agenda for autumn.
MPM Capital is looking for investment opportunities in Germany
On the subject of new financing options for German biotechs, Patrick Bäuerle, also reported during the IZB event. Bäuerle (mid in foto), previously the Head of Science at Munich-based antibody specialists Micromet, which was acquired by Amgen in 2012 (with the german all time record sum of 1,2 bn US$) joined the US-early-stage investor MPM Capital, based in Cambridge, Massachusetts and San Francisco, California, just three months ago. “When we have decided to finance an idea in the academic field, we actively participate in the development of the startup,” he explained the MPM investment strategy at the Munich investor event. From the perspective of MPM Capital, this is the most efficient way to bring a business idea to a target-orientated exit. Since starting at MPM Capital three months ago, Bäuerle has successfully launched two US-biotech companies. From his office in Munich, Bäuerle also sees the German and European markets as interesting places for start-up projects, although there would be no shortage of investment options in the US. “I am doing it because of our close ties, not because I have to,” he said. Overall, $400 million are available in MPM Capital’s current investment fund.
German technologies raise international attention
These news demonstrate a new dynamic in the German biotech scene. Just recently, the German stock exchange launched its new venture network to attract more international money. In addition, during the last months several companies such as Munich based Suppremol with its Baxter-deal or mRNA-specialist Curevac with its Gates-deal raised significant attention. The aquisition of a German company by cancer immunotherapy play Juno also showed the high attractiveness of German technologies in the biotech field.
Source: www.biotechnologie.de
Author: Sandra Wirsching
Foto: IZB