Arkin Holdings today announced that it has closed a $270 million biotech fund to focus on crossover investments - late growth stage per-IPO companies and early post-IPO companies. In addition to Mori Arkin himsaelf, investors including leading Israeli institutional investors such as Migdal Insurance, Phoenix, Harel, More Investments, Menorah-Mivtachim, and Leumi Partners. The new fund will be managed by Pini Orbach and Dr. Alon Lazarus.
Orbach said, "In recent years the drug development process has accelerated. Due to this capital needs are greater alreasdy in the pre-clinical stage (animal trials). When we have participated in investing in early stage companies, we have seen very quickly that there is no choice but to go to the stock exchange in order to raise the large amounts needed. The private market cannot support this and so today pharma companies are responsible for 40% of stock exchange offerings.
He added, "There is almost no offerings today without crossover investments and we understood that we can be there together with the big funds. In this way we can participate in these attractive rounds in pour portfolio companies and also lead rounds in other companies."
Isn't $270 million a bit small for a fund of this kind?
Orbach said, "A reasonable fund in this area would be about $400 million in size but $270 million will allow us to make 8-10 investments and prove ourselves, in the hope that subsequently we can raise a bigger fund."
Crossover investments are not exactly suitable for Israeli biotech companies are they?
"So far I haven't seen crossover for an Israeli company. It doesn't exist. Of course if there will be an Israeli company suitable for this, we would be very happy to be their opportunity but it would have to be a technology that completely changes the rules of the game."
Published by Globes, Israel business news - en.globes.co.il - on October 27, 2021.
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