Deerfield Management said last week it launched a $550 million investment fund focused on the healthcare industry.
The Deerfield Healthcare Innovations Fund, as it’s been titled, will seek to invest in companies looking to advance therapeutic interventions for genetic diseases, cancers and orphan diseases, as well as new disruptive technologies in the medical therapeutic delivery industry.
“Research funding in health and life science innovation has decreased in recent years, which unfortunately leaves many areas of important research unsupported. This fund provides a significant opportunity for greater innovation in the healthcare and life science sectors, which hold not only substantial opportunities for advancement, but also have the greatest financing needs,” firm partner William Slattery said in prepared remarks.
“The unprecedented advances in our understanding of the biology of disease combined with the application of new technologies allow for life-altering changes in medical practice. The pullback in funding that has occurred for these innovations over the last decade could not have happened at a worse time. Our unique model of producing research through the Deerfield Institute and our philanthropic endeavors through the Deerfield Foundation allows us to provide value to innovative institutions, companies and patients that goes well beyond capital,” Deerfield president James Flynn in a press release.
Deerfield said any profits not allocated to investors would go to its charitable Deerfield Partnership Foundation to support its work providing healthcare services to underserved children, as well as funding other charitable healthcare research and development.
The foundation has raised $25 million to advance children’s health in New York City, the company said.
The Healthcare Innovations Fund includes investments from institutions such as the New York-Presbyterian Hospital, Memorial Sloan Kettering and Seattle Children’s Hospital, and philanthropies, such as the Robert Wood Johnson Foundation, the company said.