Asset-centricity is an approach to investing in the life sciences field with a focus on key assets, such as a pharmaceutical molecule that could form the basis for a novel new drug which has already been identified, rather than on discovering such assets through basic research & development.
The asset-centric investing model is an attempt to streamline the drug discovery process, based on the widely held belief that it has become too expensive. It de-couples life sciences assets from the infrastructure necessary to develop them, with the goal of improving returns on invested capital.
A typical asset-centric startup company would have a single asset, or sometimes two, with a team of experts, including drug developers, shared across a back-end structure and across a variety of portfolio life sciences companies. These team members would coalesce for specific, focused drug-discovery projects The bulk of funding would support the development of the primary asset, with the rest supporting a secondary asset and infrastructure.
History
The asset-centric model of investing was developed by Index Ventures, a venture capital firm. Forms of the asset-centric model have subsequently been adopted by other life sciences investment firms such as Atlas Venture and Symphony Capital.
Examples of Asset-Centric companies
Examples of life sciences companies built on the asset-centric investing model include:
- Aegerion Pharmaceuticals (Nasdaq: AEGR)
- Arteas Therapeutics (acquired by Eli Lilly)
- OncoEthix (acquired by Merck & Co.)
- Pangenetics (acquired by AbbVie)
- XO1 Limited (acquired by Janssen Pharmaceuticals)
References
- ^ "Decentralising drug research". The Economist. May 24, 2014.
- ^ "Venture capitalists ride biotech wave one drug at a time". Reuters. April 10, 2015.
- "Atlas Venture unveils a $280M pure play biotech startup fund". FierceBiotech. April 17, 2015.
- "Why drugs are expensive: It's the science, stupid". Scientific American. January 6, 2014.
- ^ "The Lone Biotech Bear?". Forbes. January 21, 2015.
- "Glaxo Joins J&J in $200 Million Fund With Index Ventures". Bloomberg News. March 21, 2012.
- ^ "Index Ventures adds big pharma to asset-centric model". EPVantage. March 21, 2012.
- "Index Ventures appoints antibody expert as partner". MedNous. September 3, 2010.
- "Lilly buys back a migraine therapy from Arteaus Therapeutics". FierceBiotech. January 13, 2014.
- "Asset-Centric Milestone". BioCentury. January 20, 2014.
- "J&J stays mum about cash, but biotech buyout is a landmark win for Index fund". FierceBiotech. March 18, 2015.