Life science-focused investment firm Arkin Holdings and Israeli insurance and finance company Phoenix Group have teamed up to launch Arkin Bioventures. The joint venture will focus on investing a total of about $60 million in “promising” pharma and biotech companies.
HERZLIYA, Israel, June 16, 2016 /PRNewswire/ –Phoenix Group (TASE: PHOE), one of Israel’s largest Insurance and Finance Companies, and Arkin Holdings, an investment entity specializing in the life science field, today announced a Strategic Collaboration Agreement for investment in pharma and biotech companies, for a total of approximately $60 Million (with an option to increase the investment in the future).
The new partnership, ‘Arkin Bio-Ventures’ (51% Arkin Holdings and 49% Phoenix) aims to invest in companies that develop promising innovative pharmaceuticals in pre-clinical and more advanced stages, both in Israel and globally. Dr. Pini Orbach, Head of Pharma at Arkin Holdings, will manage the Partnership. On behalf of Phoenix, Mr. Elad Givoni, Head of Private Equity, led the venture.
This is the largest investment ever made by the Phoenix Group in private pharma companies, and the first time its Investment Division promotes such an extensive life science collaboration. The joint venture will expand Phoenix’s investment and return opportunities in private pharma companies, in Israel and worldwide. Phoenix believes that leveraging its financial resources and capabilities, along with the well-recognized specialized pharma expertise of Arkin Holdings will provide the Phoenix group an access to significant lucrative investments and involvement in a variety of promising pharma companies.
Arkin Holdings, managed by Mr. Nir Arkin, is well known as the largest and leading Israeli-based life science investor. The Arkin Holdings Group, founded by Mr. Mori Arkin, has successfully performed strategic investments in recent years in private pharma and biotech companies. The most prominent is cCAM Biotherapeutics, a clinical-stage cancer immunotherapy company, which was acquired by Merck in July 2015 for a total of approximately $605 Million.
Mr. Roy Yakir, CEO, Phoenix Investments and Finances, commented: “Phoenix has been searching, for some time, for a way to be significantly exposed to private companies in the pharma field. This field is considered to have a potential for particularly high profitability, especially in connection with investments in private companies at the development stages. We believe that the experience and prominent reputation accumulated by Arkin Holdings in recent years as an investor specializing in the pharma industry will help us increase our exposure to the sector with an attractive yield-risk profile”.
Mr. Mori Arkin, Chairman and Founder, Arkin Holdings, said: “We are extremely happy to collaborate with the Phoenix Group, one of Israel’s largest Institutional Investors, and regard it as a first-rate financial and strategic partner. The joint platform we have created is an important milestone in the expansion of the Arkin Group’s Pharma activity and will enable us to jointly capitalize Arkin group’s substantial experience and knowledge, with Phoenix’s proven investment abilities and track record, to the benefit of the Israeli Pharma Industry”.
Phoenix Group manages approximately NIS 160 Billion through a variety of investment channels and various fields, such as real estate, non-bank financing, Private Equity and more.
The Arkin Group also operates in the life science field through Accelmed Fund, which manages over $250 Million invested in medical device, and through Sphera Global Healthcare fund, the largest hedge fund in Israel, managing approximately $500 Million invested in public pharma companies.
Additional information may be found on Arkin Holdings’ website: http://www.arkinholdings.com