Panacea closes second healthcare fund on $276m

The corpus comprises two vehicles, Panacea Venture Healthcare Fund II and Panacea Opportunity Fund I. A statement issued by the firm’s placement agent, Atlantic-Pacific Capital, did not specify the size of each vehicle. It only noted that the overall target was USD 250m. LPs include sovereign wealth funds, fund-of-funds, endowments, foundations, and family offices.

Panacea closed its debut fund on USD 181m in 2019 with a mandate to focus on incubation and Series A rounds. Investments in incubated companies – across different early-stage rounds – were expected to account for the bulk of the fund.

The strategy is largely unchanged for Fund II. Panacea will target emerging companies in biotech and pharmaceuticals, medical devices and diagnostics, and healthcare IT and services. The team, which includes 17 partners and venture partners, is not restricted to covering China. Panacea has people in China, the US, and Europe, as well as a network spanning all major global life sciences hubs.

“Given the unprecedented global fundraising market, we are extremely pleased to have achieved an oversubscribed fundraising with the Panacea team. Their global focus and deep healthcare experience will position them well to deliver strong performances in this current environment,” said Vincent Ng, a partner at Atlantic-Pacific.

China biotech investment rose from USD 1.5bn in 2019 to USD 5.1bn in 2020 and then USD 8.3bn in 2021. Approximately USD 4.5bn has been put to work so far this year as sell-offs in public markets – in China and globally – hit private investor sentiment.

Speaking to AVCJ earlier this year, Huang (pictured) highlighted the potential of medical devices following disruption to global supply chains. He and others identified this area – and contract development and manufacturing organisations (CDMOs) – as relatively safe plays amid market turbulence.

Huang has been working in the biotech and pharmaceuticals space, from operations to investments, for more than 30 years. He held positions with Bristol-Myers Squibb, SmithKline Beecham, GlaxoSmithKline, and cancer drug developer Tularik before Vivo Ventures offered a path into the investment space in 2007. Huang assumed responsibility for Asia, with a particular focus on China.

Four years later, he was tapped by KPCB, which wanted to add a healthcare practice in the country. One-third of the firm’s USD 250m second China fund went into healthcare investments, including five incubated businesses.

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• Topics
• Greater China
• North America
• Fundraising
• Healthcare
• Venture
• GPs
• China
• USA
• Pharmaceuticals
• Panacea
• Fundraising