Growth equity firm NewVale Capital officially broke cover with its $167 million fund on Monday morning to back third-party service providers that support the drug development industry.
The Boulder, CO-based firm, which has already backed three companies, had originally sought $125 million, founder and managing partner Todd Holmes told Endpoints News. Its limited partners include long-time biotech investors, including university endowments, foundations, insurance companies, family offices and unnamed “recognized pharmaceutical executives.”
A lot of the innovation in drug development has shifted toward smaller and medium-sized biotechs as compared to the old days of pharmaceutical companies driving most of the new drug approvals, Holmes said. With that comes a reliance on more third-party services providers, like contract research organizations and CDMOs, to get a medicine from discovery to approval, he said.
“We’ve gone from an industry that outsourced maybe 20% of all activity 20 to 30 years ago, to now more…
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