Dive Brief:
- Flagship Pioneering said Wednesday that it’s added another $3.6 billion to its capital base, bringing the total raised since 2021 to $6.4 billion.
- The Cambridge, Massachusetts-based company said $2.6 billion will be allocated into its eighth venture fund, while another $1 billion is set for other uses, including sector-specific strategic partnerships. In November, Flagship told regulators it planned to raise $3 billion for Fund VIII.
- Meanwhile, Flagship announced more than a dozen promotions and new hires in its leadership ranks. The changes include the promotions of Lovisa Afzelius and Paul Biondi to general partner and the addition of Dina Ciarimboli as general counsel and executive partner.
Dive Insight:
Flagship’s robust funding round highlights a general recovery in biotech investment. A number of venture capital firms brought in fresh cash this year, including Foresite Capital, Sands Capital, Scion Life Sciences and a life sciences arm of Goldman Sachs. Arch Venture Partners is also raising a new $3 billion fund.
Still, investors are now often looking for more proven commodities rather than the preclinical startups that easily raised cash in 2020 and 2021. Activity in initial public offerings in the sector remains spotty, too.
Flagship offers institutional investors the chance to buy into a diverse universe of biotech companies. Launched in 2000, Flagship has created more than 100 scientific ventures and currently counts 40 companies in its portfolio, including COVID vaccine maker Moderna. All told, Flagship now has an aggregate capital pool of $10.9 billion and $14 billion of assets under management.
Flagship said the latest financing will support the creation and development of about 25 “breakthrough companies” in health, sustainability and artificial intelligence. In the company’s release, CEO Noubar Afeyan highlighted the potential for AI to “transform drug discovery” as Flagship propels new companies forward.
The company’s in-house drug development unit, Pioneering Medicines, now includes more than 100 employees with a pipeline of 10 experimental therapies. That division leads partnerships with major industry players including Pfizer, Novo Nordisk and the Cystic Fibrosis Foundation.
While Flagship can point to Moderna as a signature success, the company has also seen some of its incubated companies stumble in a tough biotech market. Evelo Biosciences announced in November it would shut down after failing to recover from disappointing study results for its lead drug candidate. And both Seres Therapeutics and Sana Biotechnology were forced to lay off staff last year.
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- Source: https://www.biopharmadive.com/news/flagship-new-fund-venture-raise-biotech-investing/720951/