JP Morgan splashes into the life sciences, tapping Stephen Squinto to run venture team with high-powered advisors

Bioregnum Opinion Column by John Carroll

This morning we’re getting another clear sign of just how much private equity has come to love biopharma during these stressful post-boom times and battered valuations. And nothing says “I love you” quite as much as billions in backing.

JP Morgan is the latest private equity player to get into the game — and they’re fielding a pro team with high visibility.

Alexion co-founder and ex-OrbiMed investor Stephen Squinto is leading the new venture group, promising to play advisor as well as financier to the life sciences companies they back. Life Sciences Private Capital is taking the field to go after “early and growth stage healthcare companies” with a special focus on drugs and tech. Key areas include genetics, oncology, neurodegeneration, rare diseases, AI and ML, metabolics and psychology.

Laurie Glimcher

Squinto is being joined by Gaurav Gupta and Anya Schiess, a couple of other vets. And they have an advisory group on call that includes two prominent drug developers/industry execs: Laurie Glimcher, the increasingly prolific head of Dana-Farber (post-GSK board), and Jeff Leiden, the former Vertex CEO who has multiple board positions in play.

There are no actual dollar figures being discussed. Just as when Carlyle Group jumped in with Abingworth to put cash out on the pipeline for pricey clinical trials, you can just assume it’s as much as they like or need.

Jeff Leiden

There’s no big secret what the attraction is. This year has been a painful comeuppance for life sciences. New money is still pumping into the industry, but not in torrents anymore. And with cash harder to come by, new opportunities exist for the smart money.

A couple of weeks ago in London, F-star’s Eliot Forster reminded me of a quote of his from a few years back, when he said you could “fart in a bag and get $10 million for it.”

That’s over, we agreed with a laugh.

Now we can see what warrants Squinto’s — and JP Morgan’s — attention.

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