winhorse/iStock Unreleased via Getty Images A unit of JPMorgan Chase's ( NYSE: JPM ) asset management division has raised over $500M for a life sciences fund that will invest in range of biotech companies, including the hot weight-loss sector J.P. Morgan Private Capital said on Thursday.
Called the 270 Life Sciences Private Capital Fund I attracted support from investors, including institutional allocators, strategic corporate partners, family offices, and high net worth individuals across North America, Europe, the Middle East, and Asia, as well as JPMorgan Chase ( JPM ). The fund invests in private biotechnology companies across stage, modality, therapeutic area, and geography. Its early company formation activities and portfolio investments span cardiometabolic disease, oncology, immunology, and genetic medicines, the company said.
With the introduction of GLP-1, as the newest class of weight-loss drugs are known, the sector is "wide open," Steve Squinto, chief investment officer of J.P. Morgan Asset Management's life sciences team, told Bloomberg News in an interview.
"This has the opportunity to be a pivotal moment in the pharmaceutical industry." Novo Nordisk ( NVO ) ( OTCPK:NONOF ) and Eli Lilly ( LLY ) currently control the market, but that's not likely to remain the case. "It’s very unlikely that the future of obesity treatment will be dominated by a stable duopoly," said Gaurav Gupta, the fund's managing partner told Bloomberg.
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