New life sciences venture firm Clarus set to begin investing $500 million inaugural fund

By E. Janene Geiss

Philadelphia, Dec. 6 - Clarus Ventures announced Tuesday the first and final closing of its inaugural fund totaling $500 million in commitments.

The new life sciences venture capital firm said it will invest its first fund primarily in U.S.-based biopharmaceutical and specialty pharmaceutical companies with products in development at "value inflection points" in their life cycle.

Its secondary focus will be companies specializing in biotechnology platforms or medical devices, European life sciences companies and private investments in public entities (PIPEs), officials said in a company news release.

The firm will provide both capital and operational resources necessary for the firm's portfolio companies to succeed, officials said. It plans to invest up to $50 million per company with a preferred investment size of $20 million to $30 million, officials said.

Clarus said it expects to begin pursuing investment opportunities in early 2006.

"Each member of the Clarus team has a track record of consistently building companies that are emerging leaders in their sectors. The Clarus partnership has the breadth and depth required to create significant value by investing at any stage of a life science company's growth," Nicholas Galakatos, a Clarus managing director, said in the release.

Galakatos has more than 21 years of direct industry and investment experience within the health care sector. He has been a general partner in a health care venture capital firm since 2000 and was vice president of new business at Millennium Pharmaceuticals, where he co-founded Millennium, Predictive Medicine and TransForm Pharmaceuticals.

Along with Galakatos, the Clarus founding team includes:

• Dennis Henner, who has more than 24 years of direct industry and investment experience within the health care sector. Henner has been a general partner in a health care venture capital firm and was an executive at Genentech. Recent representative investments include Kalabios, Rinat and Tercica;

• Robert Liptak, who has more than 19 years of experience in investment management, focusing primarily on establishing and managing various investment management businesses. He has been a general partner in a health care venture capital firm and was a partner with the Geometry Group, a diversified asset management firm;

• Nicholas Simon, who has more than 26 years of direct industry and investment experience within the health care sector. He has been a general partner in a health care venture capital firm and was an executive at Genentech. Recent representative investments include Barrier Therapeutics, CoTherix, Inc. and Rigel Pharmaceuticals;

• Michael Steinmetz, who has more than 23 years of direct industry and investment experience within the health care sector. He has been a general partner in a health care venture capital and was an executive at Hoffmann-LaRoche. Recent representative investments include GPC Biotech, Biovitrum, BioXell and Arena Pharmaceuticals; and

• Kurt C. Wheeler, who has more than 28 years of direct industry and investment experience within the health care sector. He has been a general partner in a health care venture capital and was founder and chief executive officer of InControl, a publicly traded medical device company that he sold to Guidant. Recent representative investments include Eyetech Pharmaceuticals, IntraTherapeutics, CryoCor and Hemosense.

The firm's value proposition is enhanced by its exceptional relationships with thought leaders and key decision makers in the life sciences field.

These relationships allow the Clarus Ventures team to identify, evaluate and prioritize unique investment opportunities, as well as to recruit outstanding management for its portfolio companies, officials said.

Clarus has offices in Cambridge, Mass., and South San Francisco, Calif.

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