Canadian Biotech Funding Plan

Royal Bank of Canada, Caisse de Deport et Placement du Quebec and MDS Health Ventures Inc of Canada have joined forces to set up a C$75 million ($55.8 million) biotechnology venture capital partnership, Neuroscience Partners LP, which aims to develop and market drugs for central nervous system disorders.

According to a report in the Ontario-based Financial Post, this is the largest pool of venture capital raised for medical science in Canada. Thus far, the partnership has accumulated C$52.5 million and has the option to raise a similar amount, C$22.5 million of which has already been committed by the group's existing investors. An anuualized return of 25% over 10 years is aimed for.

Neuroscience Partners will provide financing to established and start-up companies in Canada and elsewhere to develop and market products coming out of research conducted by a neuroscience university research group in Montreal. MDS Health Venture president Edward Rygiel has said that four or five companies have been targeted already.