Risk-seeking behavior

Clarus Ventures' third disclosed risk-sharing start-up looks to be its broadest so far, as Nuvelution Pharma Inc. expects to tackle a wider variety of diseases and may absorb more risk. The newco launched with an undisclosed amount of money from Clarus and Novo A/S, and a team of veteran dealmakers who will invest in $50-$500 million deals with big biotech and pharma companies.

Typically, risk-sharing companies partner with pharmas to run late-stage studies of pharma-owned molecules. The risk-sharing companies shoulder the clinical and regulatory costs and are eligible for payments if the molecule is approved...