Diamond Biofund Takes Off: Biotech in Acceleration

Diamond Biofund (TWSE: 6901) joined the Taiwan Stock Exchange Mainboard on September 19, 2023 as the first public evergreen venture capital dedicated to biotech investments. This milestone event in Taiwan’s capital market aims to inspire more evergreen venture capital funds to invest in emerging and innovative technologies, boosting economic development in Taiwan.

Successfully raising a fund of NT$4.49 billion (US$140 million) with a total paid-in capital of NT$8.49 billion (US$265 million) at its IPO, Diamond Biofund seeks to attract international capital, to expand its investment in advanced multinational companies, and to further support Taiwan’s innovative new drugs’ entry into the US and EU markets.

Established in 2013 by Microbio with funding from Fubon Financial Holding, Taishin Financial Holding, and Ruentex Group, Diamond Biofund targets globally competitive opportunities in new drug, high-end medical equipment, and agricultural biotechnology. Diamond has cultivated seven biotech spin-offs from six top tier universities and research institutes and donated over NT$600 million (US$19 million) to nurture high-caliber talents and support medical research in Taiwan. It has also incubated two new-drug companies, each with a market capitalization record exceeding NT$30 billion (US$1 billion).

Mr. William Lu, the Chairman of Diamond Biofund, highlights that the global biotech market is projected to reach US$3.2 trillion by 2030 at a compound annual growth rate (CAGR) of 12.8%. This strong market demand is fueling the value surge in scientific breakthroughs and product commercialization across the biotech industry value chain. The market value of biotech stocks in Taiwan is expected to experience exponential growth in the next five years. Diamond Biofund, an evergreen fund with asset under management of approximately NT$8 – 10 billion (US$250 – 313 million), will continue investing in early-stage biotech startups. NT$4 billion (US$125 million) from the IPO proceeds will be invested in new funds with domestic and overseas financial holdings, insurance companies, and other funds, targeting to raise NT$10 – 16 billion (US$313 – 500 million) for M&A and development in mid to late-stage biotech innovative products, accelerating the returns on investment.

As the biotech industry is taking off, Lu emphasized that investing in Diamond Biofund means investing in top-notch biotech companies around the world. Diamond’s highly specialized team with extensive experience in new drug development aims to maximize the investment value by optimizing global investment opportunities and risk management.