Fosun Pharma USA and Treehill Partners have formed a jointly operating vehicle for investment in clinical stage assets.
The new business will be looking for high-quality, mid- to late-stage assets, clinically focused on the US market. There will also be a focus on high quality non-US clinical stage biopharma assets seeking to access the US market.
“Over the recent quarters we have observed a tendency of stand-still in the industry resulting from limited capital being available for biotech product development. This has left a large number of programmes unable to advance and ultimately reach patients, not only because clinical activities could not take place due to insufficient funding, but also because companies were not able to attract the expertise necessary to move forward successfully,” Rong Yang, CEO, Fosun Pharma USA, said.
Initial investments in 2024
The business will be seeking to make its first investments during 2024. The full spectrum of activities along the investment life cycle — from strategy creation, target identification and investment, over product and business development, to value realisation and strategic exit options, will be jointly managed.
“We have selected Fosun as a preeminent global partner who shares our work ethos and vision for novel pathways of biopharma product development, with whom we have established a trustful relationship over many years,” said Ali Pashazadeh, Founder and CEO of Treehill Partners.
As the companies and assets in the investment portfolio mature, the partners will be looking to source third-party capital in several possible structures that will be decided on a case-by-case basis.
Enhancing clinical development and commercialisation
This collaboration follows the launch of Treehill’s novel service aimed at optimising the biotech drug development process and fostering closer collaboration between key stakeholders.
“CROs have invaluable expertise in developing drugs to regulatory approval. The path to commercial success however is complex, involving multiple stakeholders along the value chain. Companies who design their development plans to address multifaceted needs, beyond regulatory requirements, are the ones most likely to succeed,” said Pashazadeh. “Treehill has designed its model to fully utilise its expertise representing buy- and sell-side clients across therapeutic areas and all stages of development. This will enable Treehill and its clients to deliver direct value to patients, ultimately helping increase the number of therapies being developed successfully.”