New life science credit company Symbiotic Capital has announced a fund of more than $600m for life science related loans.
Led by veteran biotech entrepreneur Arie Belldegrun, founder of Kite Pharma and co-founder of Bellco Capital, the US-based company will develop and develop credit solutions for life sciences companies in across healthcare, including medical devices, biotechnology, and synthetic biology.
“As the costs of researching, developing and marketing new treatments, tools, equipment and other products have increased significantly in this sector, credit has become an important financial tool for businesses based on of health. With Symbiotic Capital, we have created a first-of-its-kind credit platform to power those jobs,” said Belldegrun.
Credit facilities in the life sciences are often uncommon due to traditional investors lacking the experience to properly value the complex assets common in this area and the regulatory challenges that contribute to financial uncertainty for borrowers. .
Symbiotic joins a short list of companies involved in life science debt financing, including Hercules Capital and Capital Advisors Group.
According to Symbiotic, debt financing can reduce the equity requirements needed for R&D and commercial activities for life science companies.
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“With Symbiotic Capital, we have assembled a highly skilled, versatile and experienced team that combines the best conventional credit credentials with deep foundations and sector expertise,” explained the chairman. co-Symbiotic Russell Goldsmith.
Since credit lines are very rare, the life sciences sector is heavily dependent on investments from venture capital or private equity (PE), however research by Bain and Company has shown that business conditions have been turmoil in recent years, and its price was there. 2023 is struggling to match the pace of previous years.
However, GlobalData’s State of the Biopharmaceutical Industry 2024 report revealed that 40% of healthcare industry professionals surveyed worldwide expressed a positive or pessimistic view of biotech investments. which begin to regress in the following 12 months.
Although Symbiotic only made the announcement this week, the company has been offering loans since at least the beginning of this year.
In January 2024, Accelus closed a $20m credit facility with Symbiotic. The US-based medical technology company, which launched a spinal implant for surgery in the same month, said the money would give it more resources to accelerate its growth.
In the same month, Symbiotic also arranged a credit facility for an undisclosed amount for US-based Cleveland Diagnostics, a medical biotech that develops diagnostic tests for early cancer detection.
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