Banyan BioInnovations is debuting with more than $100 million aimed at developing independent companies for promising clinical-stage treatments, plus a partnership with global contract research organization (CRO) Icon.
The investment firm is an offshoot of Boston-based life science investment bank Locust Walk and will leverage the bank’s life science hubs in Boston, San Francisco, Tokyo, Shanghai and Beijing, to form “NewCos” around assets, according to a press release issued this week.
Banyan co-founder and CEO Geoff Meyerson, who is also the CEO of Locust, describes Banyan’s work as a new model for funding clinical-stage drug candidates.
“Each Banyan Bio NewCo has a clear clinical objective to create asset value, disciplined and broad capitalization from launch, and access to world-class operational infrastructure,” he said in a statement. “This repeatable operating system aligns each NewCo and its investors with asset originators, enabling a win-win scenario for all parties.”
Banyan trees are famous for their longevity and aerial roots that grow downward to form secondary trunks, allowing a single tree to create expansive canopies. The company said the model is focused on building multiple clinical-stage companies around promising assets that are supported by centralized infrastructure. Like a banyan tree that doesn’t die even if the original trunk fails, “The failure of one program doesn’t bring down the firm, and the success of one or two can carry the portfolio,” a Banyan spokesperson said.
Banyan’s clinical development team will likewise lead due diligence, planning and strategy for each drug, and the firm will offer operations, regulatory and CMC services via a fee-for-service model to help NewCos advance their programs.
Banyan also announced a collaboration with Icon designed to improve trial execution and design, as well as commercialization strategy.
The Banyan partnership follows an Icon collaboration with research technology company Advarra in March, as well as the revocation of its 2025 financial guidance after the company identified accounting errors.
The company is launching with 50 team members, including Co-founder and President Barbara White, M.D., who will lead non-clinical drug development, plus phase 1-3 and post-approval clinical development. She most recently served as CMO and chief executive at SFJ Pharmaceuticals.
“The path to bringing a promising drug to patients requires experienced leadership, insightful strategy, rigorous planning, and meticulous execution, while at the same time maintaining close attention to quality,” she said in a statement.
