Dutch healthcare insurer Achmea and investment company Life Sciences Partners (LSP) have set up an investment fund for innovation in healthcare, the LSP-Health Economics Fund (LSP-HEF). On 5 September 2011, the healthcare insurer already announced its intention to make € 50 million available for this purpose. As of today, the fund is ‘open for business’ and will seek to invest in international technology companies that may contribute to increased healthcare quality and better cost control.
The fund will be managed by Life Sciences Partners (LSP) a pan-European investment firm specialized in healthcare and biotechnology investments. LSP has recruited a dedicated investment team consisting of investment and technology specialists as well as experts for health economics and healthcare processes. The team will target European and US-based companies that have products close to or on the market. The main focus are companies offering promising technologies or products targeting indications such as cardiovascular diseases, lung disease, diabetes, cancer and dementia – diseases that more and more people are afflicted with and for which society pays a high price.
New technologies and products for these indications can lead to better control of health care costs while improve the quality of patient care, for example by using better diagnostics, applying minimally invasive treatments or preventing complications. In spite of this, it is the experience of Achmea and LSP that many of these companies struggle to penetrate the market quickly due to an insufficiently developed health economics case; this is often due to the fact that the technology has not been developed together with healthcare providers, not all stakeholders have been considered, and that a sales process that requires addressing each individual physician can slow down market take-up.
Through the unique cooperation between an insurance company and an investment firm, Achmea and LSP can efficiently support such companies in bringing their technologies to the market. Achmea will provide access to its know-how, expertise and database to help build the healthcare economics cases. Moreover, Achmea will help companies to find their way in the healthcare market, and will bring new technologies to the attention of healthcare providers.