Ebb & Flow
Two industry veterans last week unveiled plans for a $1 billion structured product development fund that seeks to capitalize on the industry's current fascination with late-stage clinical products. A major part of its strategy will be to acquire the assets of struggling companies that lack the money to get their products through the clinic, offload the expensive management and infrastructure, move the products through development and then resell them.
Stephen Evans-Freke, former chairman and CEO of Sugen, and John Mayo, former finance director of Zeneca Group, formed Celtic Pharma, a Bermuda-based private equity group. Celtic Pharma's Celtic Pharmaceutical Holdings fund has commitments of $125 million, but the firm hopes to grow the fund to $300 million by year end and to more than $1 billion in the 2006-07 timeframe. ...