Predicting the fallout from private equity’s inroads into biotech

The trend of private equity interest in life sciences venture is expected to continue, and will result in larger growth funds being deployed, especially in Europe, filling a financing gap that could see companies staying private longer. What’s less certain is whether these deals will be a net positive or negative for the early-stage company creation side of the sector.

In a little over six months, three of Europe’s largest life sciences venture firms — LSP, Abingworth and Sofinnova Partners — have either been acquired by or sold a minority stake to leading private equity firms, though many date the recent rush back to the 2018  takeout of Clarus Ventures by Blackstone Inc. (NYSE:BX). ...