A biotech led by a 33-year-old CEO just raised $200 million and reached a $7 billion valuation, and it plans to use the money to give old drugs new life

November 14, 2018

Roivant Sciences CEO Vivek Ramaswamy.

Lisa Lake/Getty

  • Pharmaceutical company Roivant Sciences just raised $200 million, reaching a $7 billion valuation.
  • The funding included participation from NovaQuest Capital Management, RTW Investments, and institutional asset managers.
  • It comes a little more than a year after Roivant raised $1.1 billion in a round led by SoftBank’s Vision Fund.

Roivant Sciences, a company known for developing drugs that other pharmaceutical companies have abandoned, has raised an additional $200 million and reached a $7 billion valuation.

That’s up 20% from the company’s previous valuation of $5.6 billion, according to a source familiar with the matter.

The funding included participation from new investors NovaQuest Capital Management and RTW Investments and from other institutional asset managers. Roivant said in a release that the round is expected to close in December.

The funding comes a little more than a year after the monster $1.1 billion round Roivant raised in 2017, led by SoftBank’s Vision Fund.

Roivant, which was founded by 33-year-old CEO Vivek Ramaswamy, is a pharmaceutical company known for identifying experimental drugs that other companies may have stopped developing for one reason or another that still have potential to get approved and go on the market.

So far, it’s launched 14 subsidiary companies and has four public companies under its wings. Those include neurodegenerative-disease-drug developer Axovant Sciences, women’s health company Myovant Sciences, and urology company Urovant Sciences.

Matthew Bullard, a partner at NovaQuest, which specializes in healthcare investments and has $1.6 billion under management, told Business Insider that while the company has been an investor in the “Vants” since working with Myovant’s initial public offering, this is the first time it’s invested in Roivant directly. After Myovant’s IPO, NovaQuest worked with Dermavant, Roivant’s dermatology company, before making the investment directly in Roivant.

“We think the team — based on what we know from our interactions — will be good at bringing in new programs,” Bullard said.

Read more: Pharma veteran Jackie Fouse is leaving a SoftBank-backed biotech founded by a 33-year-old to run a cancer drugmaker

It’s been a critical year for Roivant. Its first company, Axovant, experienced trial failures with its lead drug for Alzheimer’s disease. Axovant has since discontinued that drug program and pivoted to developing a gene therapy for Parkinson’s disease.

And one of Roivant’s companies had one of the biggest IPOs of the year: Urovant raised $140 million in September.

Roivant said in a release that it’s expecting late-stage data from six of its clinical trials in 2019.

See also:

  • With a $5.7 billion deal, Athenahealth will become a ‘formidable competitor’ in a growing part of healthcare
  • The president of the company headed for the biggest IPO in biotech history has a surprisingly large pay package

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