HBM BioVentures and NMT New Medical Technologies to merge

16 January 2003

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HBM BioVentures and NMT New Medical Technologies have decided to merge operations. The combined company will have assets of EUR 580m under management and form Europe's largest life science vehicle. The decision will not affect the fund raising activities of the recently launched HBM BioCapital (Cayman) LP and there are no plans to syndicate the two investment portfolios.

On 3 February 2003 the shareholder of NMT will be asked to give their approval to the decision, with the general meeting following a day later; the final settlement is sought for 26 February 2003. All former NMT employees have received an offer to join the combined company. Andrew Davidson, formerly NMT, and a further as yet unnamed member will join the management board of HBM BioVentures. Following the merger the combined firm will hold around 45% of its net assets as investments in private companies, 16% as investments in quoted companies and around 39% in cash. The company will not invest more than 66% of its net assets in private companies and will target start-up, early-stage and later-stage as well as spin-offs and special situation companies.

Both HBM and NMT stress that in the current environment the new firm will benefit from being a large investor with a critical mass of assets. They argue that only larger players will continue to be able to source and optimally exploit the majority of attractive investment opportunities in Europe and the USA. The management says that the merger will allow the new company, which will trade under the name HBM BioVentures AG, to diversify risk and to expand its investment activities. In addition, HBM will benefit from an increased employee base and bigger assets under management.