Israel-based financial services and insurance provider Phoenix Group and healthcare-focused investment firm Arkin Holdings formed a strategic collaboration agreement yesterday that will invest approximately $60m in pharmaceutical and biotech companies.
The $60m stands as the initial contribution, and the companies may increase the amount of capital in future.
The joint venture, named Arkin Bio-Ventures, is 49% owned by Phoenix with the majority stake held by Arkin. It will be managed by Pini Orbach, head of pharma at Arkin, while Elad Givoni, head of private equity at Phoenix, spearheaded the initiative on behalf of the corporate.
Arkin Bio-Ventures will invest in Israel-headquartered and international businesses working on preclinical and later-stage products.
The partnership marks the largest commitment that Phoenix has made to private pharmaceutical companies to date. The corporate expects its financial resources and capabilities, combined with Arkin’s expertise, will lead to significant returns and give it access to promising startups.
Roy Yakir, chief executive of Phoenix Investments and Finances, said: “Phoenix has been searching, for some time, for a way to be significantly exposed to private companies in the pharma field.
“This field is considered to have a potential for particularly high profitability, especially in connection with investments in private companies at the development stages.
“We believe that the experience and prominent reputation accumulated by Arkin Holdings in recent years as an investor specialising in the pharma industry will help us increase our exposure to the sector with an attractive yield-risk profile.”