OrbiMed raises $4.3bn for latest biotech funds

International healthcare investment group OrbiMed has raised around $4.3 billion in committed financing for distribution across three new private funds that will be used to support life sciences companies in the next few years.

OrbiMed Private Investments IX is in line for $1.87 billion for private equity deals, with another $1.71 billion for OrbiMed Royalty and Credit Opportunities IV, which backs commercial-stage companies. Another $751 million for Orbimed Asia Partners V, with funds for all three provided by a mix of medical institutions, university endowments, foundations, pension funds, sovereign wealth funds, and family offices.

The funds will be used across the range of companies on which OrbiMed focuses, from seed financing for start-ups to capital growth investments for biopharmaceutical, medical device, diagnostic, and technology-enabled healthcare service specialists.

The size of the commitment will be a boost for the biotech sector, which is currently in the middle of a rough patch for financing with venture capital investment, debt financing, initial public offerings and follow-on raises all down from levels seen during the pandemic.

After very high financing levels in 2020 and 2021, 2022 saw a steep decline in capital available to the sector and 2023 looks set to also be down, albeit slightly improved on the prior year. Venture capital funding has, however, remained reasonably strong amid the downturn.

OrbiMed has a presence in the US, China, India, Israel, and most recently Europe, with the opening earlier this year of an office in London. It manages more than $17 billion in investments across private and public life sciences companies.

Its current investments cover more than 190 companies, including recent deals involving Rampart Bioscience, AVITA Medical, MinervaX, and Evozyne.

“OrbiMed is deeply appreciative of the continued support we’ve received from many long-standing partners who’ve invested in these funds,” said Carter Neild, a managing partner of OrbiMed, in a statement. “We will endeavour to meet our partners’ high expectations in the coming years.”

Other recent raises for life sciences investors include $500 million across two funds run by US venture capital group 1315 Capital earlier this week, plus new funds at Anglo-Swiss outfit Medicxi ($400 million), Netherlands-based Gilde (€600 million), and new US funds Cure Ventures ($350 million) and Curie.bio ($500 million) earlier this year.

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