Formation Bio announced $600 million in commitments for a new drug-development fund on October 28, creating a dedicated financing vehicle for clinical-stage programs in its portfolio.
The New York company said the Formation Bio Drug Development Accelerator Fund would support its goal of acquiring 10 to 15 programs over three to five years. Those are planned acquisitions; the announcement does not establish that the programs have already been purchased or successfully developed.
Formation Bio will act as general partner through a subsidiary and invest alongside limited partners, which it identified as research foundations, endowments, hospitals and philanthropic organizations.
The company said each funded program would have a separate corporate entity while sharing its development staff and infrastructure. It acquires or licenses Phase 1 and Phase 2 assets and aims to reach major clinical milestones within two to four years, depending on the program.
The commitments provide financing for development work. They do not represent regulatory approval or evidence that an experimental medicine is effective.
Sources Formation Bio — Fund announcement distributed by PR Newswire: https://www.prnewswire.com/news-releases/formation-bio-announces-600-million-debut-fund-to-expand-drug-development-capacity-302921852.html