Episode 1: How to Access Growth Capital in the Life Sciences with Equity Investor Jim Gale
Welcome to The Platform, a podcast designed to equip listeners with tools, insights, and exciting opportunities to make bigger and better deals. Each month, we host a new guests — industry experts, thought leaders, and emerging companies — to keep you well ahead of the curve on trends, current events, and the inner workings of successful growth strategies in the space.
In this episode, Adam and Erica are joined by Jim Gale, the Founding Partner and Managing Director of Signet Healthcare Partners. He talks about the state of growth capital in the healthcare industry and how to access it.
[1:47] Tell us a little bit about yourself.
I graduated from the University of Chicago Business School in the early 80s and began working in investment banking.
With some friends of mine who were senior executives of a fund, we started Signet in 1998.
Since then, we’ve invested in over fifty companies.
My background is in finance, and health sciences was originally not an area I had much interest in.
[5:33] What do you think pharma can learn from other industries?
In B2B, the idea is quality of service. It’s about understanding customer needs and adapting your services around that.
For the B2C world, the pharmaceutical industry has become customer-oriented over the past twenty-five years.
It’s not all science related. It’s about conveying the benefits of products to consumers.
[8:50] We’ve seen a lot of large companies swallow up smaller ones over the past couple of decades. Do you think it’s because smaller organizations are getting better at marketing, or do you think it’s just a market share play?
I suppose it’s a combination of both.
What’s really driving M&A in pharmaceuticals now is that a number of large companies have products coming off patent that are facing genericization.
Smaller companies tend to be nimbler in terms of research because of a simpler decision-making process.
[11:19] At what point do you look to invest in an organization?
We are a growth equity firm, not a venture capital firm. We don’t invest in companies that are pre-commercialization.
Typically, we’re looking for some evidence or validation that the service or product have receptivity in the marketplace.
[13:23] Your portfolio seems to be a bit vertically integrated. Is that a strategic factor for you when you’re looking to bring another organization into it?
In part, yes.
We like to have a mix of companies that aren’t all involved in the same activity. We balance it geographically or by function.
To invest in the creation of products, we invest in companies that “sell picks and shovels to the miners.”
We like to get companies to work together. That way, we can provide opportunities that they might not otherwise have.
[16:05] What other factors are pertinent to the success of your portfolios?
Well, I can tell you what doesn’t work for us. We’ve had some failures.
We interact closely with our companies, but one in China was too far away so we weren’t as effective as we should have been.
Another company we invested in, the launch did not go well. Nobody there was able to make a decision.
Success comes to us when we have a strong measure of control over a company.
We want to make sure that financial information is rapidly produced so we can be proactive instead of reactive.
[22:10] How can companies who are seeking investment get in touch with you?
They can reach us through the contact form on our website.
A large part of our business comes from referrals.
[23:09] Is there anything we didn’t touch on that you’d like to discuss?
The pharmaceutical industry is going through another renaissance. There are technologies coming that will transform lives.
We’re going to be forced to re-think how we pay for drugs.
Issues and investment opportunities will be created.
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The Platform came to fruition organically. As industry needs and technology shifts, deal makers in the space need to be agile in their approach. The Platform brings great minds, successful innovators, and emerging opportunities to the table. We discuss key growth methods, industry news, and the changing landscape with key industry players to provide you with all the essentials for success. Listeners learn about tips for business valuation, growing your network, new market entry methodology, sought-after opportunities, and upcoming conferences and events.
About Sosna + Co
Sosna & Co is a boutique business and corporate development firm specialized in the life sciences. Our expert team has more than 30 years of experience creating business development transactions. Our connections provide insight into industry trends and allow us to strategically leverage information on behalf of our clients. We are well-versed in executing global mandates, while remaining agile in our approach — unconfined by geography or project size. We work with startups, middle-market companies, and industry leaders. As an extension of our clients’ executive management team, we leverage our global network and established relationships to expedite transaction periods and maximize value.
Our team specializes in:
Generics, Branded Prescription, OTC products for global license, acquisition or partnership
Facilities: CDMO and other
New Technologies: Digital, Clinical-Stage Assets
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