Family Offices Bet Big on Biotech in June

In June, family offices managing wealth for the ultra-rich intensified their investment activities. They completed 60 direct investments in companies, marking a significant increase from 47 deals in May. However, this figure still represents a 40% decline compared to the same period last year.

Biotech and Healthcare: Hot Investment Sectors

Despite the overall downturn, biotech and healthcare sectors saw notable interest, with nine deals closed in these areas.

Antheia: A Standout Investment

One of the standout investments was in Antheia, a company specializing in producing ingredients for medicines like Narcan. Antheia raised $56 million, with family offices Athos KG and S-Cubed Capital participating. These investors are renowned for their long-term vision, aligning well with the biotech industry's gradual but steady progress.

Christina Smolke: Scientist Turned Entrepreneur

Christina Smolke, co-founder of Antheia, is a scientist turned entrepreneur. She developed a method to use yeast to produce opioids for medical use rapidly, contrasting the traditional two-year process. This innovation attracted patient investors who recognize that biotech advancements require time.

The Appeal of Biotech Investments

Family offices are drawn to biotech due to its potential to address significant global challenges. Smolke highlights that drug shortages and access to medicines are universal concerns. By investing in companies like Antheia, these offices aim not only for financial returns but also to drive meaningful change.

Antheia's Milestones and Future Plans

In late 2024, Antheia launched its first product, thebaine, an ingredient in Narcan. The recent funding will support expanding production to the U.S. and developing additional medicines. Their ultimate goal is to rebuild essential medicine supply chains, enhancing global drug accessibility.

Diversifying Investments: Entertainment and Sports

While biotech remains a major focus, family offices are also exploring other sectors. For instance, Nintendo's founding family invested in an indie film studio, a rare move in Japan. Additionally, Blackstone billionaire David Blitzer joined a fundraising effort for a sports club, demonstrating the diverse interests of these investors.