MVM Summer 2020 Newsletter

Summer 2020 Newsletter

________________________________________
MVM team news

MVM invests in MDxHealth

MVM invests in SkyCell

Valneva partners Lyme disease vaccine with Pfizer

MVM sees rebound in medical procedure volumes
________________________________________

MVM team news

MVM welcomes a new Partner, Akhilesh Pathipati. Akhilesh received an MD at the Stanford School of Medicine and an MBA at the Stanford Graduate School of Business. Prior to joining, he practiced medicine as a resident at Beth Israel Deaconness Medical Center and Signature Healthcare Brockton Hospital.

Sophie Pell joined MVM from RJD Partners, a mid-market private equity fund. Sophie will be based in MVM’s London office and is reachable on sp@mvm.com to provide investor information.


New Deals

MVM invests in MDxHealth

Prostate cancer will affect 1 in 9 men and is the second leading cause of cancer deaths. Prostate cancer is typically first identified by the PSA test. Twenty-five million PSA tests are done annually in the US but PSA is notoriously inaccurate and frequently gives false positive results, causing misery for patients, unnecessary biopsies, and high costs for payers. Advances are therefore needed and MDxHealth markets two proprietary molecular tests that improve the diagnosis of prostate cancer.

A high PSA is often followed by a needle biopsy but sometimes the needle misses the cancer. The company’s ConfirmMDx helps to confirm that a negative biopsy is truly negative, avoiding unnecessary repeat prostate biopsies. SelectMDx, helps clinicians decide which patients with high PSA can avoid a prostate biopsy. Together, MDxHealth’s innovative tests achieve health care’s triple aim of improving health outcomes, reducing cost, and enhancing the patient care experience.


MVM invests in SkyCell

In April 2020, MVM invested in SkyCell, which leases its patented temperature-controlled containers to safely transport vaccines and biotechnology drugs by air. SkyCell technology avoids the need for active refrigeration, lowers the costs of transport and reduces potential damage to vital pharmaceutical products.

SkyCell lists top vaccine and pharma companies amongst its clients and has demonstrated continued strong growth through the COVID-19 pandemic, including supporting COVID-19 related shipments of vital medical supplies.



Portfolio News

Valneva partners Lyme disease vaccine with Pfizer

Lyme disease is the most commonly contracted tick-borne disease in the US with over 300,000 patients being diagnosed per year. Left untreated, Lyme disease can cause serious complications affecting the joints (arthritis), the heart (carditis) or the nervous system. The medical need for vaccination against Lyme disease is steadily increasing as the disease footprint widens.

There is no effective vaccine on the market for Lyme disease and often medical treatments are not effective due to late diagnosis. Valneva has the only vaccine in clinical development for Lyme disease and has shown positive immunological responses in a Phase IIa clinical study. In the partnership with Pfizer, Valneva is eligible to receive a total of $308 million cash payments including a $130m upfront payment. In addition to milestones Valneva is entitled to tiered royalties starting at 19%.


Rebound in medical procedure volumes after big declines during COVID lockdowns

The MVM team has been working closely with portfolio company managers to recover from the early COVID hit to the US hospital market. As widely reported, there was a very substantial reduction in US hospital activity with most non-urgent appointments and procedures being cancelled during the lockdowns. By June, MVM started to see good recovery in activity across its portfolio as hospitals put in place processes to ensure a safe resumption of procedures. Data from MVM’s portfolio companies shows a strong recovery in June and July. MVM’s portfolio showed a stronger recovery than indicated by a recent survey from LEK which reported that elective procedures by the end of July were at 65-75% of pre COVID levels.