University of Pennsylvania will pour money into at least 10 Philadelphia-based biotech companies over three years and has already backed Tmunity, Carisma and Tycho.
University of Pennsylvania has launched a $50m co-investment pilot program for at least 10 biotech developers aimed at driving entrepreneurial activity surrounding its campus, the Inquirer reported on Tuesday.
The money will be invested over three years in companies which agree to hold their head offices in the Philadelphia region. To be eligible, potential investees must have secured external funding from at least one biotech-focused investor.
Kevin Mahoney, chief administrative officer of Penn Medicine, the university’s health system, confirmed the program had already launched despite the lack of an official announcement.
The initiative is excepted to spur growth in Pennsylvania’s innovation ecosystem and prevent lucrative biotech companies from moving to cities more renowned for science funding.
Pennsylvania also hopes the program will complement other health system initiatives by quickly delivering new biotech-based treatments for patients while diversifying its research portfolio and securing more sources of non-governmental capital.
In addition to direct investments, Pennsylvania expects to provide manufacturing support and software services designed to help portfolio companies promptly scale production.
The fund’s first investment was a $5m commitment to immunotherapy spinout Tmunity Therapeutics’ $135m series A round closed in April 2018.
Its portfolio also includes immunotherapy developer Carisma Therapeutics, which closed a $53m series A round featuring Penn Medicine yesterday, and Tycho Therapeutics, a drug developer led by Steven Nichtberger, adjunct professor in Penn’s Wharton School.
