A NUMBER of former Elan executives have raised €75 million in venture capital to invest in life sciences projects over the next five years.

Dr Manus Rogan, Aidan King and Dr Ena Prosser have set up Fountain Healthcare Partners, a Dublin-based group that plans to invest in the speciality pharmaceuticals, biotechnology, medical devices and diagnostics sectors.

Enterprise Ireland has contributed €21.75 million, while the National Pension Reserve Fund has invested €15 million.

Fountain Healthcare said 90 per cent of the fund was raised from institutions, with the balance from wealthy individuals. The venture capital group said it had originally intended to raise €40 million, but interest was so high it decided on the larger amount.

It intends to establish a second fund of €25 million within 12 months. "The plan is to invest in 10 to 15 life science companies," Mr King said. "We're looking at doing two to three deals a year."

The group said it expects to make its first investment within six months. "There's a lot of companies seeking funding at the moment so there's no shortage of deal flow," Mr Rogan said. The primary focus will be on deals in Ireland but it will also seek investments in Europe.

Enterprise Minister Micheál Martin said the fund was significant as the sectors involved, key to the economy, employed 40,000 people.