Biotechnology is key to modernising health care. Every day, we read news about discoveries in gene and cell treatments, but we need to realise those are results of years of research and trial-and-failure process. Polish Development Fund (PFR) understands that and wants to support Polish biotechnology. They’ve just set up PFR Life Science, an SPE aiming to invest 300M PLN in innovative enterprises from that sector.
The entity has so far invested 80M PLN in Selvita and Mabion, who work on oncology therapies and monoclonal antibody technologies, respectively. Now, they’re looking for more innovative enterprises to support!
The main problem with biotechnology is that it takes time. Clinical tests and biotech drug registration process last much longer than it does with generic meds. While there’s money to fund to biotech research, it’s not always available in the long term. The funding instruments are not adapted to the life cycles of such companies.
For instance, Polish joint-stock companies enter the stock market quite quickly, which doesn’t always work in their best interest. How so? They have to publish quarterly reports about their operations, including the financial results, so they are being closely watched. The pressure of being successful is high, and as we’ve mentioned above, in biotech you have to wait years to get something right, if at all.
“PFR wants to support biotechnology companies on the long-term scale because we can invest up to 15 years. We hope that such a financing instrument will be compatible with the life cycle of biotechnology companies. Through PFR Life Science we can directly invest in companies at later stages of their development,” explained Zofia Szewczuk, Senior Investment Manager at PFR.
But rest assured, PFR does not exclude companies at early stages of development! They support them indirectly — through their fund of funds, PFR Ventures.
PFR is the official partner of Impact’18, which will take place on June 13th & 14th. It’s not too late to register. See you there!
