London– Alis Biosciences has launched an investment fund aimed at recovering more than $30 billion in capital currently tied up in publicly listed, development-stage biotech and life sciences companies that have experienced clinical or regulatory setbacks.
The newly formed fund seeks to provide a structured, efficient solution for investors to reclaim trapped cash while allowing for the continued development or sale of residual intellectual property. Founded by industry veterans Annalisa Jenkins and Nicholas Johnston, Alis is positioning itself as a novel player in the biotech investment space, bridging the gap between scientific potential and shareholder value.
“There are nearly 300 biotech companies globally with market caps between $5 million and $100 million, holding cash reserves of up to $400 million, but with little viable path forward,” said Johnston, a founding board member of Alis. “These companies face liquidity issues and stalled pipelines, yet their balance sheets still hold substantial cash. Our mission is to return that capital to shareholders and support viable science where possible.”
Alis plans to acquire and delist struggling biotech companies through mutually agreed structures, then manage their assets through Special Purpose Vehicles (SPVs). Depending on the situation, cash will be returned to shareholders and the companies’ intellectual property either developed further or monetized. The fund’s offerings include:
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Structure A: Returns up to 97% of uncommitted cash to shareholders. Remaining assets are transferred to stakeholders interested in continuing R&D, with Alis retaining a minority stake to share in any future success.
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Structure B: Returns around 95% of cash, with Alis retaining IP for rapid wind-down and possible resale—faster and less costly than bankruptcy proceedings.
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Structure C (to be offered post-IPO): Retains about 40% of cash in the acquiring vehicle to fund new clinical programs, returning 60% to shareholders along with equity in Alis. Proceeds from successful R&D would be distributed through contingent value rights (CVRs) or Alis shares.
Chair of Alis Biosciences, Annalisa Jenkins, emphasized the market need for a creative solution: “Investors are often stuck with shrinking value and limited exit options after biotech companies suffer clinical failures. Alis offers a route to recover cash quickly and reallocate it to more promising opportunities.”
Alis intends to list on public markets in the near future to broaden its reach and expand its offerings. The company’s approach has already drawn interest from both public and private investors eager for a more efficient way to recycle capital and preserve residual scientific value.
The fund’s launch comes amid a broader downturn in the biotech sector, where early-stage companies with limited pipelines often struggle to recover after regulatory or commercial disappointments. Traditional options like mergers or bankruptcy often result in dilution or extended delays in capital recovery.
Alis aims to change that narrative by combining financial innovation with deep industry knowledge to create a sustainable path forward for investors and viable science alike.
