Dive Brief:
- Regeneron Pharmaceuticals is getting into biotechnology investing, committing $500 million over the next five years to an independent venture capital fund that launched Monday.
- Called Regeneron Ventures, the fund aims to build and grow biotech companies, as well as those working on life sciences device and tool technologies. Regeneron is the fund’s exclusive limited partner.
- Jay Markowitz and Michael Aberman, both formerly Regeneron executives, will lead the fund’s investment strategy, “drawing on the lessons learned and successes achieved at Regeneron,” said Aberman in a Monday statement.
Dive Insight:
Corporate venture arms are commonplace among large pharmaceutical companies, giving them an opportunity to invest in up-and-coming biotechs before committing more fully to emerging technologies. Johnson & Johnson, Novartis and Sanofi are among the most active.
Regeneron, a storied drugmaker that’s long been synonymous with biotech, is now joining in. The launch of Regeneron Ventures comes as investment in the sector has gotten off to a stronger start than last year, when a downturn forced cutbacks and adjustments. Still, corporate venture investing remained stable despite the market reversal, according to data from HSBC Innovation Banking.
The money Regeneron plans to commit is staggered over the next five years, but is roughly similar in total size to the $600 million SR One, GSK’s former venture arm, raised last year. Other venture firms are raising much larger funds.
Markowitz, who most recently worked at Arch Venture Partners as a senior partner, said Regeneron Ventures will be “agnostic” to therapeutic area, technology or stage of development in making its investments. While at Arch, Markowitz founded three companies. He worked at Regeneron from 2017 to 2020, and was previously at T. Rowe Price Associates and Capital World Investors.
Aberman was previously CEO of biotechs XenImmune Therapeutics and Quentis Therapeutics. He spent seven years at Regeneron, serving as head of investor relations and strategy.