J&J Innovation backs Gilde’s new $285M biotech fund

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Gilde Healthcare has put together its fourth healthcare fund, looking to back a range of biotechs, device companies and digital health with a fresh injection of $285 million. And J&J’s Innovation group ($JNJ) has jumped in to help back the group, looking to further add to its extensive connections on both sides of the Atlantic.

“We are stage agnostic,” says Pieter van der Meer, the Dutch managing partner of Gilde Healthcare. The most important part of their biotech investments is that they’re backing a first-in-class asset that’s three to four years out from a likely exit. Gilde prefers to rely on trade sales for its exits, well aware that IPO windows have a habit of opening and closing over time.

That’s not something they leave entirely to chance, either. Gilde is careful to host some prior conversations with potential acquirers before they risk their money on an experimental drug or device.

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As with the last fund, says the managing partner, Gilde is looking to invest over a 5-year investment period; though van der Meer says he wouldn’t be surprised to see it go a bit quicker than that.

There have been a few prime exits over the years. Van der Meer singles out GlycArt Biotechnology (acquired by Roche ($RHHBY)), AM-Pharma (under option to Pfizer ($PFE)) and Prosonix (a U.K. company bought by Circassia a year ago) as top investments.

Each of its new companies in this new fund can expect to reap €15 to 25 million over the course of their investment.

In addition to new arrival J&J, Royal Philips has come in to back Gilde again.

- check out the release

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