Healthcare investment firm Patient Square Capital sees a bright future in therapeutics—despite a bear market—cashing in $300 million to form portfolio company Enavate Sciences, which will support and grow a series of therapeutics companies.
The new venture will be headed by James Boylan, known in the industry from his most recent role as president and head of investment banking of SVB Leerink. Prior to that, he spent 12 years as a managing director at Merrill Lynch.
“We are in the golden age of therapeutics, where the science has never been better understood and the tools to target disease, engineer therapies and deliver drugs to patients with precision have never been more powerful,” CEO Boylan said in a May 2 news release. “Yet current financial market dynamics have created significant challenges for therapeutic companies to raise the necessary capital to advance their pipelines. Therefore, we believe this is an excellent time to bring forward a new platform focused on supporting the continued growth needs of these leading companies.”
Enavate will provide money and strategic capabilities to advance therapeutic pipelines, which is “particularly important given the scarcity of funding in today’s environment,” according to Jim Momtazee, managing partner of Patient Square and chairman of Enavate Sciences’ board of directors.
Boylan, who helped build SVB Leerink into a leading healthcare investment bank, will put together a team to help form companies. Enavate will provide guidance to life science companies to improve drug discovery and development, assist with clinical and market assessments and provide business development expertise.
In addition to Patient Square’s capital commitment of $300 million, Enavate anticipates raising significant funds over time. The company will consider a broad range of therapeutic areas from both preclinical- and clinical-stage companies, and give priority to companies with high growth potential and development in areas of unmet medical need.
Enavate’s first investments will be announced “very soon,” according to Boylan.