Blackstone Group Inc has already received $3.4 billion of its targeted $4.6 billion investment for the life sciences sector.
If the private equity firm hits its target, it will be one of the largest ever investments into the life sciences.
The funds raised by Blackstone will go towards one of the most lucrative sectors for the modern economy. The life sciences sector is working towards the development of new and improved high-impact drugs. These products currently hold much potential for both therapy patients and investors. However, they are seen as a more risky option for investment.
Right now, Blackstone is shifting its focus from traditional assets like real estate, credit, and private equity. However, few private equity firms have dared to venture into the drug development and life sciences sectors. Instead of investing in the uncertain drug development sector, other big firms like Bain Capital and KKR & Co Inc have focused on dedicated healthcare funds. Blackstone, however, has joined up with Novartis in a joint venture to develop new treatments. The two are working on bladder cancer gene therapy and a new heart treatment.
Blackstone has entered the life sciences sector as recently as 2018, when it bought Clarus. Clarus had already launched four separate funds for the life sciences, and now Blackstone has launched another one that goes by the name “Blackstone Life Sciences V.” Blackstone has also backed several other companies in the sector.