Samsung is investing $52.23 million (72 billion won) in the United States venture capital firm Flagship Pioneering to identify bio-innovation companies poised to become the next Moderna. Flagship Pioneering, known for being among the top three venture capital firms globally, is the originator of Moderna, the developer of the coronavirus vaccine.
Samsung C&T and its subsidiaries Samsung Biologics, Samsung Bioepis, and Samsung Venture Investment announced the investment in Flagship Pioneering’s eighth fund, the Life Science Fund 2. The fund, totaling $2.6 billion, is dedicated to new drug development. Samsung aims to leverage information from tech companies and invest further in high-potential firms.
A financial insider said, “Samsung Electronics Chairman Lee Jae-yong is determined to develop the bio sector into the ‘second semiconductor.’” The company seeks technology companies for significant advancements in drug development, pharmaceutical outsourcing (Samsung Biologics), and the generic drug business (Samsung Bioepis).
Flagship Pioneering manages $13.78 billion (19 trillion won) in assets and specializes in biotech investments. It is an entrepreneurial venture capital firm that invests in and creates biotechnology companies, supported by an internal research organization. The firm has founded over 100 companies, including Moderna, and has taken over 30 public.
Noubar Afeyan, CEO of Flagship Pioneering, holds a PhD in biochemistry and is Moderna’s founder and largest shareholder. Despite having ample investors, Flagship Pioneering is selective.
“The global brand of Samsung and Chairman Lee Jae-yong’s network facilitated this investment,” an industry insider said. Lee met with Afeyan during his 2021 U.S. trip, where he engaged with major pharmaceutical companies, and they reconnected last year in Washington, D.C., during a presidential delegation visit.
