5AM raises $285M fifth fund to focus on early-stage therapeutics, drug delivery


5AM Ventures, the prolific biotech and drug delivery investor out of Menlo Park, CA, has raked in $285 million for its fifth fund, according to an SEC filing. The latest fund brings 5AM’s total raised capital to about $1 billion, distributed to more than 40 companies at their early stages of development.

5AM, led by managing partners Kush Parmar, Scott Rucklage and Andy Schwab, has since 2002 facilitated the acquisition or IPO of 14 companies altogether, the drug delivery ones of which include Alexza (IPO in 2006), Bellerophon (IPO last year), Calibrium (acquired by Novo Nordisk last year), Incline Therapeutics (acquired by The Medicines Company in 2013), Pearl Therapeutics (acquired by AstraZeneca in 2013), Pulmatrix (public in 2015) and more.

The venture capital fund also has active investments in drug delivery companies Crinetics Pharmaceuticals, Chrono Therapeutics, PhaseRx, scPharmaceuticals, Precision Nanosystems and more.

According to MedCityNews, the new fund, like its $250 million predecessor in 2013, will go toward 15 to 18 companies at about $15 million to $20 million per company.

“The last few years of biotech have been very robust, driven by great advances in science to (support) precision medicine,” Schwab told the news outlet.

Like the fourth fund, the investment targets would break down to about half in therapeutics, a quarter in drug delivery and the rest across diagnostics and reagents. The company plans to begin these investments in the next few months.

- here's the 5AM release
- here's the SEC filing
- and here's the MedCityNews report

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