New bio fund launched – and investment begins

A new life-science fund said it raised €240.3 million – and promptly announced its first two investments.

TVM, a German-American investment firm, last week announced the closing of its latest life sciences fund, TVM Life Science Ventures VI. Investors were led by the European Investment Fund and AlpInvest. Others included KfWBankengruppe in Germany, Sweden’s Skandia Liv Asset Management, Temasek Holdings in Singapore and Development Fund, a Taiwanese government-sponsored investment vehicle. Strategic investors included pharmaceuticals company Quintiles Transnational Corporation and US biotech companies Genzyme and Biogen.

One of the fund’s first investments is in Newron Pharmaceuticals, a Milan-based spin-out of Pharmacia Upjohn. TVM put €7 million into Newron, supplementing €23 million invested in the company earlier this year by HBM Partners, 3i Group, Apax Partners and Atlas Venture.

Newron focuses on treatments for neurogenerative disorders. Its Safinamide, designed to treat Parkinson’s disease, is in phase III clinical trials, and its Ralfinamide for treatment of neuropathic pain is in phase II trials.

The new TVM fund is also investing in elbion, a small molecule therapeutics company based in Radebeul Germany, as part of the company's recently closed €35 million financing round.

TVM, founded in 1983, is one of the first venture capital firms formed in Germany. It has raised more than €1.4 billion, and its funds have invested in more than 220 companies.

Further information: www.tvmvc.com