National research fund Sitra considers disposing of biotech portfolio
|
|
The Finnish National Fund for Research and Development (Sitra), which invests public money, plans to move its investment portfolio in biotechnology to an outsider.
At the same time, Sitra is considering selling its whole portfolio to a capital investor, which would most likely be a foreign entity.
In its first stages, the move would include about 20 companies, which is about half of the firms in the sector financed by Sitra. The remaining companies would be divested later - in about a year.
The reason for the planned move is that Sitra can no longer afford to finance biotech development projects for medicines and other products, which take between 10 and 15 years, swallowing an estimated EUR 100 - 300 million in risk capital.
If Sitra sells off its entire biotech portfolio, it will probably be managed by a company in one of the world’s tax havens.
US capital investors favour the Cayman Islands, while Europeans tend to focus on the Channel Islands.
Sitra has invested in the biotechnology field since 1997, and has sustained a loss of about EUR 50 million from its direct investments in Finnish biotech companies.
Sitra is an independent public foundation under the supervision of the Finnish Parliament. One of its aims is to develop Finnish society through investment activities. It invests public money in companies, whose products are still in the commercialisation phase.
Sitra nevertheless plans to maintain a say in the biotech portfolio even after the sale. This means that international investors will not be able to control Finnish biotech companies at will.
Helsingin Sanomat
