Just when the world was coming to believe that the volatile market conditions have led investors to back out from making investments in life sciences, Bain Capital rose against the idea.
Bain Capital LP is a private investment company in Boston that has lately raised and announced its second investment in life sciences amounting to a whopping $900 million. This hasn’t only given the market a push that was needed but is also enticing other companies to support groundbreaking medical firms.
Bain’s second fund will be invested in 15 to 20 medical companies that are engaged in developing new medical devices, tools, equipment, diagnostic setups, and drugs. The same has been confirmed by Jeffery Schwartz and Adam Koppel, the managing directors of Bain Capital Life Sciences.
With its first fund amounting to $600 million in 2017, Bain Capital made 15 investments in life sciences by backing biotechnology and neuroscience-focused companies including Solid Biosciences Inc. and Cerevel Therapeutics, respectively.
“We view health-care investing — and life sciences especially — as a multidecade-long secular growth opportunity. This will continue to be a growth area because this will continue to be a priority for people. People not only want to live longer, but they want to live healthier.”
- Adam Koppel, MD – Bain Capital Life Sciences
Ahead of Bain’s massive second investment, the biotechnology industry has received massive capital investments from global investors to catch up with the pace of scientific developments. With this, rare therapies, such as those that are known to shrink cancerous tumors, have now become mainstream. These therapies are priced at hundreds of thousands of dollars.
All of these investments in life sciences have given a massive boom to the industry in its initial public offerings, fundraising for investment firms that are engrossed in technological healthcare companies, and private funding mega-rounds.
Bain’s management says that their latest investment in life sciences will be used to implement new strategies. Some of the notable strategies include funding for:
- Private companies that are about to go public
- Drug manufacturers in the market that have drugs in the last stages of the pipeline and need commercial infrastructure
Bain Capital has also promised to set out $20 to 100 million for each of its investments. The company has itself admitted 20% of its capital into the life sciences fund and tends to generally invest in their own vehicles.