LSP closes European record $600m fund for life sciences

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(Image: Getty/Eag1e) (Getty Images/iStockphoto)

In further positive signs for the European biotech market, LSP exceeds its funding target to raise largest ever sum in Europe.

Life Sciences Partners (LSP), a European investment firm, raised the $600m (€530m) sum after backing by Bristol Myers Squibb and Otsuka Pharmaceuticals, among other investors.

The capital will be used to develop 15 to 18 private companies developing medicine or medical technologies for the healthcare system.

After exceeding its initial target of $450m and reaching its hard cap of $600m, LSP more than doubled the capital it has at its disposal to invest in life science ventures, holding a total of $1.1bn.

Speaking on the potential for investing in the European market, René Kuijten, managing partner of LSP, said, “The number of high-quality life sciences innovations in Europe is similar to the US but there is 5x less capital available to back these innovators and entrepreneurs.”

LSP pointed to a 32-year history as the reason for investor confidence in the firm, with it noting that it had developed over 120 companies during the course of its existence.

However, wider than investor confidence in LSP, there are growing levels of funding pouring into the European life sciences and biotech scene.

At the end of 2019, GHO Capital Partners raised €975m to invest specifically into outsourcing companies, such as contract research organizations, after seeing success with this approach after the sale of Quotient Sciences.

Medicxi also saw success with its own fund specifically for investment into European biotechs, adding €400m to its coffers.