Novartis Venture Fund extends its strategic and geographic reach

Integration of the Novartis BioVenture Fund strengthens its position in the USA

22-Feb-2002

Basel, 21 February 2002 – In its fifth year, the Novartis Venture Fund extended its role as an important partner for start-up companies in Switzerland and other countries, as illustrated in the Activity Report published today. To date, the Fund has been involved in the establishment of 107 companies and, in 2001, a further step in its development was taken with the extension of its strategic and geographic reach. In this strategy, new companies are also to be supported with venture capital beyond the start-up phase. With the integration of the Novartis BioVenture Fund, which is most active in the USA, the Novartis Venture Fund is further extending its field of operations in the important US market.

"With the recent integration of the US-focused Novartis BioVenture Fund, we have further strengthened the position of the Novartis Venture Fund", said Daniel Vasella, Chairman and CEO of Novartis. "And in so doing, we are reinforcing the commitment that we made five years agoo– to foster entrepreneurship, to create new jobs and to promote innovative discoveries."

With the addition of the BioVenture Fund, the Novartis Venture Fund now has three pillars of activity: the Spin-off Fund will continue to support Novartis employees who want to set up in business with an innovative idea, while the Start-up Fund supports young companies emerging from the universities. Thanks to the successful business operations of some portfolio companies, the Venture Fund has now seen the first substantial return on its capital. This has allowed the Fund to continue its activities on the same scale as before. Since the inception of the Fund in 1996, 94 new companies have been established and 1350 jobs created, with a total financial support of CHF 126 million.

As its third pillar, the BioVenture Fund, that was recently integrated into the Novartis Venture Fund, increases not only its geographic reach but also its financial muscle. The BioVenture Fund is endowed with USD 100 million and has invested in 13 biotechnology companies, mostly in the USA, whose activities are contributing to the treatment of diseases and helping to speed up the discovery and development of medicines.

As part of the new strategy, a growing share of investments will flow into existing companies which are dependent on additional capital as they continue to develop their technologies. For example, the Spin-off and Start-up Fund last year invested a total of CHF 30 million, of which CHF 18 million went into new companies and CHF 12 million into existing ones.

"Despite the current recessionary trends in the world today, the Life Sciences continue to offer unique opportunities for start-up companies," says François L'Eplattenier, Chairman of the Board of the Novartis Venture Fund. "The winners of tomorrow will be those who best manage collaborations and intelligently capitalize on synergies with the growing number of smart and diversified niche players."

The Novartis Venture Fund is built on the belief that economic growth and the creation of new jobs can be achieved in the long run if new entrepreneurial initiatives develop and promising ideas become a business reality. With an initial venture capital of CHF 100 million and USD 100 million, the Novartis Venture Fund supports new and innovative business projects in forward-looking areas, especially in the field of Life Sciences and new technologies. Further information can be found on the internet at http:// www.venturefund.novartis.com.

https://www.chemeurope.com/en/news/8711/novartis-venture-fund-extends-its-strategic-and-geographic-reach.html