Japan eyes UK life sciences sector with injection into venture fund
The Development Bank of Japan (DBJ) is looking to plough cash into the UK’s stagnant life sciences sector as part of its effort to expand its global investment portfolio while also backing home-grown firms.
DBJ is investing in 4Bio Capital, a UK-based venture fund specialising in advanced treatments like cell and gene therapies.
Alongside Japanese pharma group Kyowa Kirin and Children’s Minnesota in the US, 4Bio said it aims to raise $200m to $300m (£157 to £236m) for its third fund, which will focus on supporting early-stage biotech companies.
Dmitry Kuzmin, managing partner at 4Bio Capital said: “We see this as an excellent time to continue backing early stage innovation, especially in Europe, and especially in the UK, given both the collapsing valuations and the continued [scientific] progress.”
But Mami Matsunaga, vice-president at the DBJ, said there is untapped potential in life sciences in the UK and Japan and the sovereign bank hopes the collaboration will contribute to “efforts to revitalise Japan’s life science ecosystem.”
4Bio also sees it as an opportune moment due to the gap between public markets and private life sciences investments.
While the UK aims to establish itself as a ‘life sciences superpower,’ smaller companies are struggling to secure domestic funding, prompting Kuzmin to urge UK investors to step up.
He said biotech is a very important industry and “one where the continent has an edge, but we’re not really using that edge, because we’re lacking the financial firepower the US funds have.”
4Bio has already begun investing from its third fund, supporting ventures like University College London spin-out ViaNautis, which focuses on genetic therapies for lung and nervous system diseases.