How Goldman Sachs’ life sciences strategy aims to scale private biotechs

Goldman Sachs’ investment in oncology company Alterome is the latest new deal from a strategy intended to position the firm’s portfolio companies to scale while still private, navigating a changing environment for biotechs as public markets’ expectations evolve.

The firm announced the final close of its $650 million West Street Life Sciences fund in January, and has now disclosed at least six biotech deals since developing the investment strategy in 2022. The firm’s Amit Sinha told BioCentury that since Goldman Sachs’ first investment in MOMA Therapeutics Inc. two years ago, West Street has spent about two years adding to its team, building an LP base with interim closes of the fund, and making more investments...