Over the past few years, corporate venture capital (CVC) companies backed by or being part of pharmaceutical companies have invested in health-tech startups to spur innovation and sponsored research for novel drugs in many therapeutic areas aspiring to develop new treatments addressing unmet needs and QoL of patients.
Following up on the BioPharma Corporate Venture Capital Investment Trends Report (2020 edition), the LucidQuest team has recently launched the 2023 edition.
In this article, we share the key findings from the 2023 report that analyzes 19 BioPharma (+ Google) CVCs and their investment portfolios. Our analysis captures the CVCs’ focus on various Technology and Therapy Areas and changes in trends vs. 2020.
Which Biopharma CVCs invest in many companies?
With Google Ventures intensifying its health-tech focus in the last few years and Amgen Ventures actively seeking investments, these two CVCs have the most companies in their portfolio. More specifically:
- Google Ventures is the CVC with the highest number (87) of investments.
- Amgen Ventures (55) and MRL (Merck) Ventures (51) have invested in 50+ companies with Novo Ventures (44), Leaps by Bayer (42), and M Ventures (42), increasing their portfolio size.
What were the main areas biopharma CVCs focused on in 2020-2023? Top-level analysis.
According to the 2023 report, Google and Biopharma CVCs mainly focused on Technology and certain Therapy Areas (TAs) such as Oncology, Cell and Gene Therapy, CNS, small molecule, and general drug development.
- Digital (including data, AI/ML, and pharma) tech and oncology are the areas drawing CVCs’ attention
- Both cell and gene therapy and CNS have been gaining traction since 2020
- Small Molecule-based tech and general drug development have also been growing consistently since 2020.
What we learned from Google and 19 Biopharma CVCs Portfolio Analysis
Certain companies are perceived as good investment opportunities by many CVCs, which is why they are included in many CVCs’ portfolios. Each portfolio’s diversification level and focus vary according to its strategic goals.
- These 18 companies belong to the portfolios of 3 or more CVCs: Artios Pharma, Ribon Therapeutics, Palleon Pharmaceuticals, ReCode Therapeutics, Verana Health, Aetion, Capstan Therapeutics, Code Biotherapeutics, FoRx Therapeutics, ImmPACT Bio, Immunitas Therapeutics, Mission Therapeutics, Mozart Therapeutics, Ribometrix, Soteria Biotherapeutics, StrideBio, TRex Bio, VHsquared
- Amgen Ventures portfolio companies explore the highest number of technologies, and AbbVie Ventures has invested in companies exploring the most diverse set of TAs.
- Google Ventures, Amgen Ventures, and AbbVie Ventures CVCs are the most diversified, with portfolio companies looking into variable tech approaches and therapeutic areas.
Where does each CVC place its money? Sneak peek at companies’ portfolios.
- AbbVie (AbbVie Ventures): SM tech is of key importance to AbbVie, closely followed by DD while also exploring Gene & Cell Therapy related tech; Onco and CNS are TAs of keen interest
- Amgen (Amgen Ventures): Growing interest in Digital/Data, AI/ML, Pharma-related tech, and Gene & Cell Therapy while still focusing on SM and DD; Onco remains the key TA while also exploring CNS along with several others
- Astellas (Astellas Ventures): Astellas continues to invest heavily in SM and DD-related Technology and focuses on Onco and Ophthalmology TAs; Antibodies and Immuno-related disorders are also gathering interest
- Bayer (Leaps by Bayer): Rising interest in Digital/Data, AI/ML, Pharma-related tech, and Gene & Cell Therapy while still exploring SM; Bayer focuses on Onco and CNS along with several other TAs.
- Boehringer Ingelheim (BI Venture Fund): Digital/Data, AI/ML, Pharma-related tech, Gene & Cell Therapy, and Health Finance-related companies are garnering interest; Onco still remains of key interest while still exploring several other TAs
- Eli Lilly (Lilly Ventures): CVC focuses on DD, SM, and Digital/Data, AI/ML, and Pharma-related tech with rising interest in Gene & Cell Therapy; TAs in focus include Onco, CNS, and Immunology-related disorders.
- EMD Serono (M Ventures): Increased focus on Digital/Data, AI/ML, and Pharma-related tech, closely followed by SM and DD; Onco, CNS, and several other TAs are being targeted by the CVC’s portfolio companies
- Google (GV): Significantly focused on investing in Digital/Data, AI/ML, Pharma-related tech, and Gene & Cell Therapy along with DD; CVC explores a wide array of TAs dominated by Onco and CNS
- GSK (SR One): SM tech and general DD are the main focus with increasing interest in Antibodies; Onco, Inflammatory, and Immunology-related disorders are among the key TAs
- J&J (J&J Innovation – JJDC): Well-diversified CVC portfolio exploring Digital/Data, AI/ML, Pharma-related tech, DD, Medical Devices, and Gene & Cell Therapy; Onco remains a key focus for J&J
- Lundbeck (Lundbeckfonden): Diversifying outside of DD, looking into Gene & Cell Therapy, SM, Antibodies, Stem Cells, Digital/Data, AI/ML, and Pharma-related tech; Onco, GI, and Rare disease related disorders receive increased interest
- Merck (MRL Ventures Fund): CVC is heavily focused on Digital/Data, AI/ML, and Pharma-related tech while still exploring SM and general DD; Onco and CNS remain the key TA alongside several others
- Mitsubishi Tanabe (MP Healthcare Venture Management): Low activity CVC with main focus on DD, also exploring Digital/Data, AI/ML, Pharma-related tech, Gene & Cell Therapy, and SM; main focus on Neuro, Onco, and several other TAs
- Novartis (Novartis Venture Fund): Diversifying outside of SM and general DD, Novartis is also investing in Gene & Cell Therapy and Immuno-related tech; key TAs include Onco and Neuro
- Novo Nordisk (Novo Ventures): Diversified CVC maintaining focus on DD and also including Digital/Data, AI/ML, Pharma-related tech, Gene & Cell Therapy, and SM in its tech interests; Onco, CV, and several other TAs are of key interest
- Pfizer (Pfizer Ventures): Heavily focused on SM and general DD with increasing interest in Gene & Cell Therapy; rising interest in multiple TAs with Onco being of high importance
- Roche (Roche Venture Fund): CVC explores SM and general DD tech and has a strong interest in Protein and Digital/Data, AI/ML, and Pharma-related tech; key TAs are Onco, CNS, and Rare disorders, along with several others
- Sanofi (Sanofi Ventures): Focuses on SM and general DD with increasing interest in Digital/Data, AI/ML, Pharma-related tech along with Immunotherapy; primary focus is on Onco, Neuro, Autoimmune, and Inflammatory related issues
- Takeda (Takeda Ventures): Still heavily focused on general DD, Takeda is increasingly interested in Gene & Cell Therapy along with SM and Immunotherapy; Onco is of interest while exploring CNS, GI, and Inflammation-driven disorders.
- UCB (UCB Ventures): Low activity CVC focuses heavily on Digital/Data, AI/ML, Pharma-related tech, and Gene & Cell Therapy; Neurology and Infectious Diseases are key TAs with increasing interest in multiple others.
Changing Trends amongst CVCs’ Top-4 Tech. in Focus (2020 vs. 2023)
- Digital tech has seen a sharp rise from being 2nd or 3rd priority in 2020 to being 1st investment priority for CVCs in the 2023 report.
- In the 2023 report vs. 2020, CVCs’ focus on Cell and Gene therapy as a top-most priority has dipped considerably; however, it is of great importance as it still remains among the top priority areas for many CVCs.
- Compared to the 2020 report, the interest of CVCs in Small Molecule-related tech as a key priority has increased marginally in 2023.
This article presented the key takeaways of the Biopharma Corporate Venture Capital Investment Trends report the LucidQuest team recently released.
Get the full report to gain more up-to-date, evidence-based insights into Technology and TAs of interest on which the industry focused, understand the CVC landscape in the pharmaceutical industry, and do a deep dive into the portfolio of each company.
Stay tuned for more free reports coming up in 2023 covering Cell and Gene Therapy, Digital Health, Oncology and Hematology, and other spaces.
Are you looking for investment opportunities in health tech and promising Therapeutic Areas but do not know where to start?
Or do you need a partner to support you with a viable investment analysis?
Contact us and gain best-in-class market insights. Learn how we help you make informed decisions.
#venture #CVC #corporateventurecapital #startup #biotech #abbvie #amgen #astellas #astrazeneca #bayer #boehringer #lilly #emdserono #merckgroup #google #gsk #jnj #janssen #leopharma #merck #msd #mitsubishitanabe #novonordisk #novartis #pfizer #roche #sanofi #takeda #ucb #googleventures