A private equity fund with Siemens Venture Capital amongst its backers has raised US $250 million for investment in healthcare firms. This is the fifth fund closed by Galen Partners, which has now invested around US $1 billion in more than 60 healthcare IT, medical device and speciality pharmacy firms since 1990.
Galen Partners provides capital to healthcare-related companies with a proven ability to generate revenue, but that are looking for money to help fund their growth. The private equity firm looks to be actively involved in its portfolio companies and tends to invest in chunks of $10-30 million. “Since our founding in 1990, Galen has pursued a differentiated investment strategy that has proven to be a formula for generating superior, risk-adjusted returns in healthcare private equity,” stated David W. Jahns, managing director and partner of Galen. “The strategy has evolved over time to reflect Galen’s investment experience and to capitalise on emerging trends in healthcare, but also to maintain a commitment to the fundamental, proven principles on which Galen was founded.”
Galen has helped to build a number of healthcare companies, including EduNeering, Encore Medical, Lumenos, MedAssets, Medicode, MiniMed, Ocular Sciences and Pyxis. Recently, Noven Pharmaceuticals bought JDS Pharmaceuticals, part of the Galen portfolio, for approximately $125 million in cash plus the assumption of approximately $10 million in liabilities. JDS is a speciality pharma company that markets two branded prescription psychiatry products, and has a pipeline of products in psychiatry and women’s health.
Another portfolio company, Cardiva Medical, recently launch the Boomerang Catalyst System for vascular closure applications. This product builds on its predecessor, the Boomerang Wire System, which has been used to close femoral artery puncture sites in more than 70,000 percutaneous catheterisation procedures since 2005.
One of Galen’s backers is Siemens Venture Capital, the corporate venture arm of Siemens AG. Altogether, Siemens Venture Capital has invested more than Euros 700 million in more than 100 startup companies and 35 PE funds.
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