ENDPOINT MERCHANT GROUP, LLC ANNOUNCES THE FORMATION OF ENDPOINT LATE-STAGE FUND II, L. P.
SAN DIEGO, CA, May 2, 2002 – The EndPoint Merchant Group today announced the formation of EndPoint Late-Stage Fund II, a five-year venture capital fund (“the Fund”). The goal of the Fund is to raise $75 million, which will be invested in domestic and foreign late-stage public (PIPE) and/or private companies in the life science industry.
(PRWEB) May 4, 2002
SAN DIEGO, CA, May 2, 2002 – The EndPoint Merchant Group today announced the formation of EndPoint Late-Stage Fund II, a five-year venture capital fund (“the Fund”). The goal of the Fund is to raise $75 million, which will be invested in domestic and foreign late-stage public (PIPE) and/or private companies in the life science industry.
The EndPoint Late Stage Fund II was formed to capitalize on the window of opportunity to invest in late-stage companies with products in Phase III development or approaching commercialization. Currently there are over 300 drugs in Phase III trials. With a historical 80% approval rating of drugs in Phase III trials, 240 drugs could enter the market by 2007. By investing in pre-IPO companies and PIPE (private investment in public entities) financings now, the Fund expects to realize a high rate of return for its investors. Liquidity is expected to be achieved in an average of 24-36 months from the date of investment.
“Biotech, as an industry, is clearly coming of age, and all indicators suggest that it is only going to grow,” said Duwaine Townsen, General Partner, EndPoint and former General Partner and Founder of Ventana Growth Funds in San Diego. “The EndPoint Late-Stage Fund II will capitalize on the tremendous potential of this industry while supporting companies dedicated to improving quality of life. With a record number of drugs currently in Phase III trials, we are witnessing an unprecedented window of opportunity for investment in the life science industry.”
Life Sciences Market Experiencing Steady Growth
The life sciences sector has been growing steadily, despite the bearish market conditions. Over the past two years, the AMEX Biotech Index dramatically outperformed the Dow Jones Industrial Average and NASDAQ Composite Indexes. As a result, venture capitalists are favoring this industry as well. Venture Economics reports that during the first two quarters of 2001, 15.8% of all venture capital investments went to the biotech/healthcare sector, a dramatic rise from 2000, when just 8.5% of venture dollars went to this industry. Of five venture-backed companies that managed to go public in Q3, 2001, four were related to biotech.
According to Michael Hsu, General Partner, EndPoint, there are multiple reasons for the increased interest in the life sciences industry. The September 11 attacks have fueled the need for drugs that counter bioterrorism, while the mapping of the human genome last year has accelerated the speed of drug discovery and increased the ability to identify new drug targets. “The biotech industry is maturing as a whole,” said Hsu. “Pharmaceutical research and development expenditures are accelerating the time-to-market for new drugs as biotech practices are becoming more sophisticated.
About EndPoint
Founded in 1998, the EndPoint Funds are a global network of individual investor partners, institutional partners, and commercial, multinational companies from the U. S., Taiwan, Scandinavia and Europe. General Partners Duwaine Townsen and Michael Hsu have over 45 years of combined experience in identifying companies in the life sciences industry with prospects for generating superior returns for investors. The EndPoint Funds are supported by a domestic and international network of partners with experience in
Venture capital, investment management, investment banking, M&A, IPOÂ’s, and private equity. For more information, visit http://www. endpointgroup. com (http://www. endpointgroup. com). EndPoint has offices in San Diego, California and New York, New York.
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