Latest news with #KevinDai
Yahoo
08-05-2025
- Business
- Yahoo
VC firm Vivo Capital outlays $740m for biotech investment
Set against a backdrop of barren biotech investment, Vivo Capital has secured $740m to back preclinical and clinical-stage life science companies. The funds will be allocated in the latest cycle of the Vivo Opportunity Fund, an evergreen public pot that runs in three-year investment cycles. Unlike traditional funds with a fixed lifespan, evergreen investments occur over periodic intervals. US-based venture capital (VC) company Vivo Capital said the third cycle will follow the same strategy as the first and second, helping finance small- and mid-cap biotechnology and life science companies. According to the financial entity, the investments aim to 'capture value from breakthroughs and clinical milestones,' as per a 7 May press release. There are approximately $5.3bn in regulatory assets under management for Vivo Capital, with the business investing in 430 public and private companies globally since it was founded in 1996. The Vivo Opportunity Fund has already catalysed a plethora of medicine development via biotech investments in its first two cycles. Verona Pharmaceuticals, for example, won US Food and Drug Administration (FDA) for its chronic obstructive pulmonary disease (COPD) treatment Ohtuvayre (ensifentrine) in June 2024. Ohtuvayre has been earmarked as 'transformative' for the COPD space due to its innovative mechanism of action and limited gastrointestinal side effects. Geron Corporation, Avadel Pharmaceuticals, and Soleno Therapeutics were other companies highlighted by Vivo Capital as gaining FDA approvals for therapies in recent years. In addition, there are the Vivo Capital-backed biotechs that were acquired by big pharma companies in recent years. The largest was for radiopharmaceutical specialist RayzeBio, scooped up by Bristol Myers Squibb (BMS) for $4.1bn in 2023. Other deals namechecked by Vivo in the billion-dollar league include Novartis' acquisition of Chinook Therapeutics for $3.2bn in 2023, GSK's buyout of Sierra Oncology for $1.9bn in 2022, and Sanofi's takeover of Kadmon for $1.9bn in 2021. These signify that Vivo Capital has a knack for spotting biotechs with potential, with managing director Kevin Dai saying the firm 'looks for the best opportunities across the entire healthcare spectrum'. Dr Gaurav Aggarwal, also a managing director at Vivo Capital, said: 'Vivo has been investing in healthcare and life sciences for almost 30 years, demonstrating consistency and supporting innovation across market cycles.' The $740m secured by Vivo Capital comes during a lull in venture capital funding for the biotech scene. Cash has already been in short supply since the boom in 2020 and early 2021, though current macroeconomic pressures have accelerated the funding downturn. US President Donald Trump has also cut government-led funding schemes in the country, removing secondary investment mechanisms that many biotechs rely on. A report by GlobalData demonstrated that biopharma drug company venture financing witnessed a 20.2% downturn in Q1 2025 compared to the same period in 2024. Funding only reached $6.5bn, shy of the $8.1bn invested in Q1 2024. Analysts state that this suggests a preference for investors to back later-stage companies with clinical data already on their books. 'Amid the ongoing macroeconomic uncertainty, venture capitalists are favouring opportunities with clearer routes to near-term revenue and market access over longer-horizon development risks,' said Alison Labya, business fundamentals pharma analyst at GlobalData. GlobalData is the parent company of Pharmaceutical Technology. "VC firm Vivo Capital outlays $740m for biotech investment" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Vivo Capital Closes Its Public Fund with Commitments of Over $740 Million
PALO ALTO, Calif., May 07, 2025--(BUSINESS WIRE)--Vivo Capital ("Vivo" or "the Firm"), a leading global investment firm focused exclusively on healthcare and life sciences, has closed the third cycle of its Vivo Opportunity Fund and its affiliates (the "Public Fund") with over $740 million in commitments. The Public Fund invests in preclinical and clinical stage life sciences businesses that are developing or commercializing novel therapies for unmet medical needs. Vivo Opportunity Fund is an evergreen fund with three-year investment cycles. The third cycle of Vivo Opportunity Fund will follow the same strategy as its first and second cycles, leveraging Vivo's deep scientific and technical capabilities to invest in small- and mid-cap biotechnology and life sciences companies. The aim of these investments is to capture value from breakthroughs and clinical milestones. The first two cycles of Vivo Opportunity Fund have successfully invested in companies that went on to announce significant milestones, such as regulatory approvals, or that were subsequently acquired by global pharmaceutical companies. Recent examples include Verona Pharmaceuticals and its Ohtuvayre™ treatment for chronic obstructive pulmonary disease (approved by the FDA in 2024), Geron Corporation's drug RYTELO™ for low-risk myelodysplastic syndrome (approved by the FDA in 2024), Avadel Pharmaceuticals and its Lumryz™ for narcolepsy (approved by the FDA in 2023) and, most recently, Soleno Therapeutics, which announced in March 2025 that its VYKAT™ XR treatment for Prader-Willi Syndrome has been approved for use by the FDA. This represents the first approved drug to treat the hallmark symptoms of this disease. Vivo-backed companies that were acquired by major pharmaceutical businesses include Sierra Oncology (acquired by GSK for $1.9 billion in 2022), Gracell Therapeutics (acquired by AstraZeneca for $1.2 billion in 2023), RayzeBio, Inc. (acquired by Bristol-Myers Squibb for $4.1 billion in 2024), Chinook Therapeutics (acquired by Novartis for $3.2 billion in 2023) and Kadmon (acquired by Sanofi for $1.9 billion in 2021). Kevin Dai, Managing Director at Vivo Capital, said: "As with its predecessors, the third cycle of the Vivo Opportunity Fund brings a venture capital mindset to the public markets, combining our long-term capital with our deep industry knowledge and experience to capture value for our investors. This strategy supports our approach of looking for the best opportunities across the entire healthcare spectrum."
Business Wire
07-05-2025
- Business
- Business Wire
Vivo Capital Closes Its Public Fund with Commitments of Over $740 Million
PALO ALTO, Calif.--(BUSINESS WIRE)--Vivo Capital ('Vivo' or 'the Firm'), a leading global investment firm focused exclusively on healthcare and life sciences, has closed the third cycle of its Vivo Opportunity Fund and its affiliates (the 'Public Fund') with over $740 million in commitments. The Public Fund invests in preclinical and clinical stage life sciences businesses that are developing or commercializing novel therapies for unmet medical needs. Vivo Opportunity Fund is an evergreen fund with three-year investment cycles. The third cycle of Vivo Opportunity Fund will follow the same strategy as its first and second cycles, leveraging Vivo's deep scientific and technical capabilities to invest in small- and mid-cap biotechnology and life sciences companies. The aim of these investments is to capture value from breakthroughs and clinical milestones. The first two cycles of Vivo Opportunity Fund have successfully invested in companies that went on to announce significant milestones, such as regulatory approvals, or that were subsequently acquired by global pharmaceutical companies. Recent examples include Verona Pharmaceuticals and its Ohtuvayre™ treatment for chronic obstructive pulmonary disease (approved by the FDA in 2024), Geron Corporation's drug RYTELO™ for low-risk myelodysplastic syndrome (approved by the FDA in 2024), Avadel Pharmaceuticals and its Lumryz™ for narcolepsy (approved by the FDA in 2023) and, most recently, Soleno Therapeutics, which announced in March 2025 that its VYKAT™ XR treatment for Prader-Willi Syndrome has been approved for use by the FDA. This represents the first approved drug to treat the hallmark symptoms of this disease. Vivo-backed companies that were acquired by major pharmaceutical businesses include Sierra Oncology (acquired by GSK for $1.9 billion in 2022), Gracell Therapeutics (acquired by AstraZeneca for $1.2 billion in 2023), RayzeBio, Inc. (acquired by Bristol-Myers Squibb for $4.1 billion in 2024), Chinook Therapeutics (acquired by Novartis for $3.2 billion in 2023) and Kadmon (acquired by Sanofi for $1.9 billion in 2021). Kevin Dai, Managing Director at Vivo Capital, said: 'As with its predecessors, the third cycle of the Vivo Opportunity Fund brings a venture capital mindset to the public markets, combining our long-term capital with our deep industry knowledge and experience to capture value for our investors. This strategy supports our approach of looking for the best opportunities across the entire healthcare spectrum.' Dr. Gaurav Aggarwal, Managing Partner at Vivo Capital, said: 'Vivo has been investing in healthcare and life sciences for almost 30 years, demonstrating consistency and supporting innovation across market cycles. We are extremely grateful to the entrepreneurs who enable the innovations we identify and for the support for Vivo Opportunity Fund that has been shown by our existing and new partners alike. We aim to repay this trust and confidence by consistently finding attractive opportunities across the public markets.' Since its founding in 1996, Vivo's mission has been to find and support the most promising healthcare companies globally to solve impactful healthcare issues. The Public Fund is part of the Firm's wide aperture approach to identifying healthcare opportunities across geographies, stages of development and sub-sectors, and complements the venture capital and growth equity/buyout strategies that comprise Vivo's multi-fund investment platform. About Vivo Capital Founded in 1996, Vivo Capital is a leading global healthcare investment firm with a diverse, multi-fund investment platform spanning venture capital, growth equity, buyout, and public equities. The Firm has approximately $5.3 billion in regulatory assets under management and has invested in over 430 public and private companies globally. Headquartered in Palo Alto, California, with additional offices in Asia, the Vivo team consists of more than 75 multi-disciplinary professionals. Vivo invests broadly in healthcare across multiple sub-sectors, including biotechnology, pharmaceuticals, medical devices, and healthcare services, with a focus on the largest healthcare markets globally.
