CCM research identifies health systems that are key early investors in biotech startups


Download ‘A New Player in Biotech Investing’ to learn why health systems are commercializing new therapies

More than a dozen health systems and their venture capital divisions are playing a vital and growing role in commercializing scientific discoveries that could lead to new treatments for diseases.

In a first-of-its-kind analysis, the Center for Connected Medicine (CCM) identified 15 U.S. health systems that are investing in biotech and therapeutics startup companies.

Download the white paper, “A New Player in Biotech Investing,” at the link above.

Four common characteristics

The CCM analysis also defined four common characteristics of health systems and medical centers that have adopted this investment strategy:

  1. Sufficient scale to dedicate resources to venture investments

  2. Relationships with academic researchers

  3. Dedicated venture capital organizations

  4. A focus on internal spinouts

While venture capital divisions at health systems have garnered attention in recent years for their digital health investments, little information has been available about the health systems and academic medical centers that are playing a larger role in commercializing medical research that could become the next blockbuster drug.

Startup biotech funding is an area generating significant interest from investors, with venture capitalists pouring more than $37 billion into the biotech and pharmaceutical industries last year. Once the domain of large pharmaceutical companies and their R&D groups, more new treatments are being developed within academic medical centers, setting the stage for health systems to become key early investors and commercialization engines.

Expert commentary included

To provide additional context to the findings in “A New Player in Biotech Investing,” the CCM interviewed health system experts who are leading investments in biotech and therapeutics startups.

  • Roger Kitterman, MBA, Managing Partner of Mass General Brigham Ventures, and Vice President of Mass General Brigham Innovation
  • Matthias Kleinz, DVM, PhD, Senior Vice President, UPMC Enterprises

Their commentary addresses why some health systems and medical centers are adopting this investment strategy, what advantages they have as investors, and whether we can expect to see more health systems becoming biotech investors.

“There’s a notion across the industry that we’re just seeing the tip of the iceberg when it comes to what medicine is capable of achieving to treat disease,” Dr. Kleinz said. “Organizations like ours bring unique resources and expertise to efforts that seek to turn groundbreaking scientific research into life-changing therapies for patients around the world.”

Related resources

Expert Panel Discussion: A New Venture for Health Systems — Biotech Investing

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