Vivo Capital Secures $740M for Third Cycle of Opportunity Fund, Boosting Biotech Investment Amid Industry Downturn

Vivo Capital, a California-based investment firm, has announced the successful closing of its third Vivo Opportunity Fund cycle, securing $740 million in commitments. This latest round of funding aims to support preclinical and clinical-stage life sciences companies, continuing the firm's strategy of investing in small- and mid-cap biotechnology and life sciences organizations.

Fund Strategy and Recent Successes

The Vivo Opportunity Fund operates on a three-year investment cycle, focusing on capturing value from breakthroughs and clinical milestones in the biotech sector. Kevin Dai, Managing Director at Vivo Capital, emphasized the fund's approach: "As with its predecessors, the third cycle of the Vivo Opportunity Fund brings a venture capital mindset to the public markets, combining our long-term capital with our deep industry knowledge and experience to capture value for our investors."

Recent successes from previous fund cycles include investments in companies that have achieved significant regulatory milestones:

• Verona Pharma: Secured FDA approval for Ohtuvayre, a chronic obstructive pulmonary disease treatment, in 2024.
• Geron: Obtained approval for Rytelo, a myelodysplastic syndrome drug, in 2024.
• Soleno Therapeutics: Received FDA approval for Vykat XR, a Prader-Willi Syndrome treatment, in March 2025.

Strategic Acquisitions and Industry Impact

Vivo Capital's portfolio companies have also been targets of major acquisitions by pharmaceutical giants, underscoring the fund's ability to identify promising ventures:

• Novartis acquired Chinook Therapeutics, a kidney disease-focused biotech, for $3.2 billion in 2023.
• AstraZeneca purchased CAR-T developer Gracell Therapeutics for $1.2 billion in 2023.
• Bristol Myers Squibb bought radiopharmaceutical company RayzeBio for $4.1 billion in 2024.

These acquisitions highlight the strategic value of Vivo's investments and their potential to drive innovation in the pharmaceutical industry.

Investment Landscape and Market Outlook

The announcement of Vivo Capital's new fund comes at a time when the broader biotech venture capital landscape is experiencing a downturn. According to a recent analysis by GlobalData, biopharma venture funding decreased by 20% in the first quarter of 2025 compared to the same period in the previous year.

Despite this trend, Vivo Capital's successful fundraising demonstrates continued investor confidence in the firm's strategy and the potential of the biotech sector. Since its founding in 1996, Vivo has invested $5.3 billion in over 430 public and private companies across biotech, pharma, medtech, and healthcare services.

As the pharmaceutical industry continues to evolve, Vivo Capital's latest fund is poised to play a significant role in shaping the future of biotech innovation and drug development. The firm's ability to secure substantial funding in a challenging market environment signals ongoing opportunities for growth and advancement in the life sciences sector.