Novartis venture fund to expand role

Novartis has announced its venture fund is to expand its role in supporting pharmaceutical start-ups.

In 2005 the fund, which is a major investor in health care companies around Basel as well as internationally, for the first time achieved a positive ratio of ‘exits’ – the successful divestitures of businesses that it has supported to new investments.

Dr Daniel Vasella, chairman and chief executive of Novartis, said: “The Novartis Venture Fund has firmly established itself as a leading participant in the Swiss venture capital scene.

“The recent strong business performance by the fund has positioned itself more than ever to fulfil its role as a catalyst for helping young companies developing novel medicines.”

Over 2005 the fund had investments in 62 private companies and committed funding of $16 million. Since its establishment in 1997 it has given support to 140 new companies.

Dr Francois L’Eplattenier, chairman of the Novartis Venture Fund, said: “One of our key success factors is the experienced management team, comprised of experts with the ability to evaluate qualitatively the innovativeness of a project, the solidity of the business plan and business model, as well as the managerial competencies of the entrepreneurs.”

With increased investments in the US the fund is now set to open a new office in Boston.

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