Sofinnova raises $650M in mid-to-late-stage fund

Sofinnova has closed its tenth venture fund at $650 million--a big step up from the $500 million the firm raised for its prior fund that dated back to the summer of 2014. This puts the total cash raised by the firm to invest in biotech companies over the past decade at more than $2 billion.

The Menlo Park, CA-based venture firm switched gears in 2007 to focus specifically on mid and later stage biopharma investments that are already in the clinic. This is its fourth fund to follow that strategy. The latest fund, Fund X, was raised from undisclosed existing and new institutional investors.

"We appreciate the significant ongoing commitment of our existing investors and have the privilege to add a small number of new highly esteemed institutional investors," said Sofinnova General Partner Jim Healy in a statement.

The fund is slated for 20 to 25 companies with a typical range of a total investment of $15 million to $35 million per company.

Sofinnova has invested in 46 companies in rare and orphan diseases, oncology, women's health, dermatology, ophthalmology and infectious diseases since 2007. Its stated aim is to invest mostly in mid- to later-stage U.S. companies, in addition to some early stage and European companies as well.

Earlier this year, its gene therapy portfolio company Audentes Therapeutics ($BOLD) and its bispecific antibody company Merus ($MRUS) both went public in IPOs. Last year, a couple of the firm’s public holdings were acquired: Hyperion Therapeutics for $1.1 billion by Horizon Pharma ($HZNP) and ZS Pharma by AstraZeneca ($AZN) for as much as $2.5 billion.

Among its most recent, disclosed new investments is a $20 million Series A in Checkmate Pharmaceuticals, which is based on a clinically validated virus-like particle (VLP) platform technology in-licensed from Cytos Biotechnology.