The investment by the alternative business unit of AXA Investment Managers will help healthtech startup Novocuff fund a key clinical trial in the US.
AXA IM Alts is the lead investor in a $26m (€24m) financing round for Novocuff, a Californian firm dedicated to improving pregnancy outcomes and reducing premature births.
AXA IM Alts’ $14m investment will help Novocuff conduct a clinical trial in the US, aimed at getting permission to start selling its Novocuff CCS device. The Laerdal Million Lives Fund, Laborie, RH Capital, Avestria Ventures and March of Dimes also took part in the funding round.
The Novocuff CCS device has been developed to stabilise and close the cervix to retain amniotic fluid and sustain cervical length, with the goal of extending pregnancy.
Premature births, those that happen before 37 weeks of pregnancy are completed, are the leading cause of death of children under the age of five, affecting more than 13 million babies each year, according to the World Health Organisation. Due to the cost of extensive hospital stays and possible health issues later on in life, the economic impact of premature birth is estimated at more than $25bn, AXA IM Alts said, citing research by the Health Care Cost Institute.
“As the leading cause of infant mortality globally, premature birth is a serious unaddressed global health issue,” said Curt Labelle, head of healthcare private equity at AXA IM Alts.
‘Dire situation’
The negative health implications on the patient, combined with the economic burden on healthcare systems, have created “a pressing and dire situation”, that needs to be addressed, Labelle said.
AXA IM Alts has €184bn of assets under management, which consists of more than €82bn of primarily private real estate, around €90bn of private debt and alternative credit, as well as around €12bn in infrastructure equity and private equity.
“Our investment should enable completion of a US pivotal study and the introduction of the Novocuff device to global markets, including low- and middle-income countries,” Labelle said.
He added this aligns with his firm’s goals of “generating measurable and positive healthcare outcomes alongside attractive long-term financial returns for our investors”.
