Four groups have met the threshold conditions for setting up the $400 million government biotech fund, including San Francisco-based Bay City Capital. Sources inform ''Globes'' that Bay City Capital has teamed up with Israel's 7 Health Ventures in the tender, and the two funds are now raising capital for their joint venture.
7 Health Ventures declined to comment on the report.
The Ministry of Finance and the Ministry of Industry, Trade and Labor are jointly behind the biotech fund initiative, which aims to give the industry a shot in the arm to overcome market failures. The goal is for more biotech companies to stay in Israel, rather than be sold in the early stages to foreign companies.
OrbiMed Advisors LLC, Medica Venture Partners, and a third fund, whose name has not been disclosed, also met the threshold conditions of the tender, and have begun raising capital.
Bay City Capital focuses on the life sciences. It has invested $1.6 billion to date in dozens of companies through several funds. 7 Health Ventures, run by managing partner Dr. Dalia Megiddo, has made six investments, including in Chiasma Ltd., which is developing an improved delivery system for oral drugs, and AngioScore Ltd., which is developing balloon catheters for peripheral and cardiac arteries.
Bay City Capital venture partner Dr. Charles Hsu has a long-term relationship with Israel, as a partner in Israeli funds Walden Israel and Advent, a precursor of Gemini Israel Funds. Bay City Capital venture partner Dr. Michael Perry previously served as an executive at Baxter BioScience and Novartis Pharma.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2010
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