Regeneron builds $500m venture arm for ‘biotech and beyond’

Backed by Regeneron Pharmaceuticals as an exclusive limited partner and a commitment of $100 million annually for five years, Regeneron Ventures said it has been created with the goal to “invest wisely to help build and grow companies that become great by improving health.”

Former Regeneron executives Jay Markowitz and Michael Aberman will be responsible for leading the investment strategy, as well as independently managing the fund. While the investment mandate covers a wide range of healthcare, Regeneron Ventures has positioned itself with an interest steered towards “agnostic to therapeutic area[s], technology and stage of development,” said Markowitz.

“Our goal is to cultivate an ecosystem where the next generation of biotech companies can thrive, drawing on the lessons learned and successes achieved at Regeneron and throughout our careers,” said Aberman. “Together, we will strive to identify and support groundbreaking advancements that push the boundaries of what's possible in science and medicine.”

No process specific details have been divulged; however, the investment arm said its decision will be based on the quality of the people, the science, and the data. It also noted they “like breakthrough innovation” and are willing to “tolerate risk and uncertainty” and added success “is what will drive our investment results.”

Joining the VC team

Regeneron now joins most of its fellow Big Pharma players in having a venture capital wing. To name a few: Novartis has Novartis Venture Fund, Eli Lilly created Lilly Ventures, Novo Nordisk has Novo Holdings, and for over 15 years Astellas has Astellas Venture Management.

While the firms of course take on the role as venture investors, they also provide insight into what could be “the next big thing” and highlight potential collaborations and/or deals.