Netherlands-based venture capitalist to invest €280m in European med tech

Life sciences investment group, Life Sciences Partners (LSP) – based in Amsterdam - has secured €280m in funding for its new medical technology fund, making the fund the largest in Europe dedicated to this field.

Launched late last year, the new LSP HEF 2 fund, which follows on from the group’s first LSP Health Economics Fund (HEF 1) which made ten sizeable investments in the same field – is looking to invest in around 15 private companies with innovative healthcare products in the field of medical devices, diagnostics and digital health.

“Products should be on the market or very close to market introduction - and have the potential to both lower costs for healthcare systems and provide improved quality of care to patients,” Anne Portwich, Managing Partner for the fund told HIMSS Insights. “We have a very open mind, however, about how that product is implemented. We have invested in solutions in the past that might, say, increase spending in the short-term, but because this leads to better long-term outcomes there will still be an overall saving.

“One digital health company that we invested in from the first LSP HEF fund, for example, had a solution that was very much about improving medical safety in the hospital - and could help nursing staff to double-check the medication when it’s given at the bedside. It’s known that about 50 per cent of all medication errors happen between a doctor prescribing the medication and the patient receiving it, so by implementing this final check, the product could effectively cut out that entire 50 per cent.

“We always try to enter into a dialogue with the company, our health economics experts and the payer to really understand how a product would fit into the system. We look at what the patient costs today with the current standard of care and what that patient would cost if you added this new technology or product… what additional costs it would create, but also what potential savings it would achieve.

“In the case of this particular product, though there were a lot of indirect costs associated with building in the final medication check - many of them difficult to pinpoint at first – when we looked at the financial picture as a whole it was not difficult to make our decision.”

The first LSP Health Economics Fund made ten investments in the same field. Recent and notable exits from this fund include Neuravi (acquired by Codman Neuro, part of Johnson & Johnson) and Rotation Medical (acquired by Smith & Nephew).

The investor base in LSP HEF 2 includes the European Investment Fund (EIF), health insurance companies, institutional investors, asset managers and family offices.

Initial enquiries about the fund should be addressed to aportwich@lspvc.com at LSP, Amsterdam.

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