HI-Bio, an American biotech company, recently received a $1.15 billion acquisition offer from Biogen, a pharmaceutical giant. This deal is a boon for the Israeli Arkin Bio Fund, which has been investing in HI-Bio since its initial fundraising round earlier this year. With this acquisition, the Arkin Bio Fund’s holding in the company will increase to 4%, providing it with an estimated income of around $45 million. Additionally, if HI-Bio’s products are successful and meet certain milestones, shareholders could receive another $650 million in payouts.
HI-Bio has been developing an antibody for the treatment of kidney diseases caused by immune system activity and is currently preparing to enter phase III of clinical trials. The Arkin Bio Fund is the only Israeli investor in the company, but it is not alone – other international funds have also invested heavily in HI-Bio due to its potential for success in the biopharma market.
Arkin Holdings made a strategic decision five years ago to diversify its investments internationally and invest heavily in biomed companies abroad. Dr. Finny Auerbach, who leads Arkin Bio, notes that this trend has become increasingly common among Israeli biomed funds as they seek to take advantage of new opportunities and experiences beyond their home market. Many recent investments have been in non-Israeli companies, reflecting this shift in investment strategies.
Despite challenges in the Israeli biomed market, efforts are being made to support local companies – especially those involved in drug development – through partnerships with international investors like Biogen. The landscape of biomed investing in Israel is constantly evolving, with a focus on nurturing mid-stage companies and supporting innovation within the industry.
