Asset-centricity is an approach to

investing Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

in the

life sciences This list of life sciences comprises the branches of science that involve the scientific study of life – such as microorganisms, plants, and animals including human beings. This science is one of the two major branches of natural science, the ...

field with a focus on key assets, such as a

pharmaceutical A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field and re ...

molecule A molecule is a group of two or more atoms held together by attractive forces known as chemical bonds; depending on context, the term may or may not include ions which satisfy this criterion. In quantum physics, organic chemistry, and bioch ...

that could form the basis for a novel new

drug A drug is any chemical substance that causes a change in an organism's physiology or psychology when consumed. Drugs are typically distinguished from food and substances that provide nutritional support. Consumption of drugs can be via insuffla ...

which has already been identified, rather than on discovering such assets through basic

research & development Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...

. The asset-centric investing model is an attempt to streamline the

drug discovery In the fields of medicine, biotechnology and pharmacology, drug discovery is the process by which new candidate medications are discovered. Historically, drugs were discovered by identifying the active ingredient from traditional remedies or by ...

process, based on the widely held belief that it has become too expensive. It de-couples life sciences assets from the infrastructure necessary to develop them, with the goal of improving returns on invested capital. A typical asset-centric

startup company A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...

would have a single asset, or sometimes two, with a team of experts, including drug developers, shared across a back-end structure and across a variety of portfolio life sciences companies. These team members would coalesce for specific, focused drug-discovery projects The bulk of funding would support the development of the primary asset, with the rest supporting a secondary asset and infrastructure.

History

The asset-centric model of investing was developed by

Index Ventures Index Ventures is a European venture capital firm with dual headquarters in San Francisco and London, investing in technology-enabled companies with a focus on e-commerce, fintech, mobility, gaming, infrastructure/ AI, and security. Since its f ...

, a

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...

firm. Forms of the asset-centric model have subsequently been adopted by other life sciences investment firms such as

Atlas Venture Atlas Venture is an early-stage venture capital firm that invests in life sciences startup companies in the U.S. Atlas is headquartered in Cambridge, Massachusetts, where the majority of its investments are located. Atlas rolled out its eleventh ...

and Symphony Capital.

Examples of Asset-Centric companies

Examples of life sciences companies built on the asset-centric investing model include: *Aegerion Pharmaceuticals () *Arteas Therapeutics (acquired by

Eli Lilly Eli Lilly (July 8, 1838 – June 6, 1898) was an American soldier, pharmacist, chemist, and businessman who founded the Eli Lilly and Company pharmaceutical corporation. Lilly enlisted in the Union Army during the American Civil War and r ...

) *OncoEthix (acquired by Merck & Co.) *Pangenetics (acquired by

AbbVie AbbVie is an American publicly traded biopharmaceutical company founded in 2013. It originated as a spin-off of Abbott Laboratories. History On October 19, 2011, Abbott Laboratories announced its plan to separate into two publicly traded compan ...

) *XO1 Limited (acquired by

Janssen Pharmaceuticals Janssen Pharmaceuticals is a pharmaceutical company headquartered in Beerse, Belgium, and wholly-owned by Johnson & Johnson. It was founded in 1953 by Paul Janssen. In 1961, Janssen Pharmaceuticals was purchased by New Jersey-based American c ...

)

References

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