Teralys Capital invests in two new Lumira Capital life sciences funds

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SOURCE: Teralys Capital

$150 million to support Québec’s biotechs throughout their stages of development

MONTREALMarch 26, 2012 /CNW Telbec/ – Teralys Capital (“Teralys”) is pleased to announce an investment of $35 million in two new funds managed by Lumira Capital: Lumira Capital II and Merck Lumira Biosciences Fund. This investment will shape Québec’s life sciences ecosystem by making financing available to companies in this sector throughout their stages of development.

More specifically, the Merck Lumira Biosciences Fund (target closing of $50 million) will invest in Québec biotechnology companies before their products have reached proof-of-concept in humans, while Lumira Capital II (initial closing of $100 million) will focus on biotherapeutic and medical device companies at a later stage of development. These funds are strongly supported by pharmaceutical company Merck, which will invest $40 million in them.

This major investment by Teralys in the life sciences sector meets the three basic requirements set by Teralys to successfully invest in this sector. Jacques Bernier, Managing Partner of Teralys, said: “We defined specific principles that funds in Québec should be structured around in order to better support local businesses: a minimum fund size of approximately $150 million, international mindset and networks, and the participation of strategic partners. Lumira Capital meets all these criteria and we applaud Merck’s commitment to the venture capital industry in Québec,” added Mr. Bernier.

“The creation of Lumira Capital II shows the relevance of the Fonds de solidarité FTQ’s strategy in life sciences. With Teralys, we are able to attract strategic partners such as Merck that give Québec innovators access to key resources for them to attain their full potential,” declared Alain Denis, Senior Vice-President, New Economy at the Fonds de solidarité FTQ.

Mr. Daniel Hétu, Managing Partner at Lumira Capital, specified: “It is a very opportune time to be investing in the life sciences sector as there is strong deal flow and promising investment opportunities in truly innovative therapeutics and medical technology companies. We look forward to investing across the spectrum of the development stages of products and technologies and to also playing a significant role in the Québec financing ecosystem of life science companies.”

Mr. Bernier concluded by stating: “This is a structuring investment for Québec. The Merck Lumira Biosciences Fund will be devoted exclusively to Québec companies at the earlier innovation stage, while the Lumira Capital II fund will provide existing businesses with much required new capital to pursue their growth. This announcement is great news for Québec biotech companies and our entrepreneurs, and confirms Québec’s leadership in the field of life sciences. We are pleased to support a team of experienced leaders in Québec and Canada who have proven themselves in this key sector for the Québec economy.”

About Teralys Capital

Teralys Capital is a fund of funds created to finance private venture capital funds focused on investing in life sciences, information technology and cleantech companies. The fund has over $700 million in capital commitments from Caisse de dépôt et placement du Québec, the Solidarity Fund QFL and Investissement Québec. Teralys Capital is also managing two existing portfolios of venture capital funds with additional assets under management of over $600 million. It is currently the largest fund of funds in Canada. Visit www.teralyscapital.com for more information.

About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $8.2 billion as of November 30, 2011, the Fonds is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec’s economic growth. Its investments, in all sectors of the economy, contribute to the creation and maintenance of businesses and development in Quebec. The Fonds is a partner, either directly or through its network members, in 2,129 companies. With its 583,235 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 160,789 jobs.

About Lumira Capital
Lumira Capital is a leading North American healthcare and life sciences venture capital firm. Currently managing over $350 million, Lumira Capital is an active investor that works closely with entrepreneurs developing transformative therapeutics and medical technology innovations.  Some of the investments in the firm’s most recent fund include Pharmasset (acquired by Gilead Sciences), Ception Therapeutics (acquired by Cephalon), Resonant Medical (acquired by Elekta), Morphotek (acquired by Eisai), and Corus Pharma (acquired by Gilead Sciences), as well as public companies such as MAKO Surgical, DepoMed and Ista Pharmaceuticals. Lumira Capital has partners in Toronto, Montréal and Boston. Visit www.lumiracapital.com for more information.

For further information:

Éric Legault
Managing Partner
999, de Maisonneuve Blvd. West, Suite 1700
Montréal (Québec), H3A 3L4
+1 (514) 509-2082