Vivo Capital Research
Investment Thesis
Vivo Capital is a global investment firm founded in 1996 (as BioAsia Investments) by Dr. Frank Kung and Dr. Edgar G. Engleman in Palo Alto, California, and operating exclusively in healthcare and life sciences. The firm's stated mission is "Catalyzing Innovation and Growth in Global Healthcare Markets," pursued through what it calls an "Ecosystem Approach" — using its network of 460+ invested healthcare companies, cross-portfolio partnerships, and multi-strategy capital (venture, growth, buyout, and public equity) to create proprietary deal flow and support portfolio companies through every stage of development. The firm invests across biopharmaceuticals, medical devices, diagnostics, and healthcare services, with no stated sector preference beyond healthcare broadly.
Sector Focus
Vivo Capital's site organizes its 90+ active/historic portfolio companies (since 2014) into four categories: Biopharm, Medical Devices, Services, and Other Life Sciences. The portfolio skews heavily toward oncology, immunology, and rare disease biopharma (Ajax Therapeutics, Terns Pharmaceuticals, Soleno Therapeutics, RayzeBio, Zai Lab, Silence Therapeutics), with a meaningful medical device and diagnostics bench (Scientia Vascular, Sera Prognostics, Neocis, Magnolia Medical Technologies) and a growing services/distribution arm following its buyout expansion (Dutscher Group, Caidya, Tebra Technologies).
Stage Focus
Vivo runs a genuinely multi-stage, multi-strategy platform rather than a single-stage fund:
- Venture Capital (Vivo Innovation Fund / "PANDA" funds, since 2015): early venture-stage healthcare technology
- Growth Equity: capital at "critical stages" to accelerate commercial growth (e.g., late-stage biotech financings, pre-IPO rounds)
- Private Equity (Vivo Capital Fund VIII, since 2016): growth capital, buyouts, management buyouts, spin-offs, and restructurings
- Public Equity (Dedicated Opportunity Fund, since 2018): long-only public biotech investing
Check Size
Not disclosed publicly. Observed deal sizes range widely given the multi-strategy platform: the firm led Full-Life Technologies' $150M financing (2026) and co-led Oricell Therapeutics' $110M pre-IPO round (2026), while its buyout arm completed its first European acquisition (Dutscher Group, a €400M+ revenue lab-supplies distributor) in 2026.
Lead Tendency
Mixed — Vivo both leads (Full-Life Technologies Series D) and co-leads (Oricell pre-IPO, alongside Beijing Medical and Health Care Industry Investment Fund and Qiming Venture Partners) late-stage rounds, and independently sources buyout transactions (Dutscher Group).
Recent Activity
2026 has been an active year for both new investments and portfolio exits:
- May 2026: Led Full-Life Technologies' $150M financing (Series D equity + debt) to advance its radiotherapeutics pipeline.
- April 2026: Co-led Oricell Therapeutics' $110M+ pre-IPO financing for solid-tumor CAR-T therapies; portfolio company Ajax Therapeutics agreed to be acquired by Eli Lilly for up to $2.3B.
- March 2026: Portfolio company Terns Pharmaceuticals agreed to be acquired by Merck for $6.7B; Medtronic announced its $550M acquisition of portfolio company Scientia Vascular (completed June 2026).
- February–July 2026: Vivo Capital's PE arm signed and closed its first European buyout, acquiring Dutscher Group from LBO France.
- April 2026: Portfolio company Soleno Therapeutics agreed to be acquired by Neurocrine Biosciences for $2.9B (completed May 2026).
- May 2025: Closed its dedicated public-equity fund with commitments of over $740M.
- July 2026: Marked its 30th anniversary with a new philanthropic initiative.
As of Q4 2025, the firm reports ~$6.1B in active AUM (other sources cite ~$5.3B–$5.8B and cumulative deployed capital of ~$12B), 16 funds raised, 460+ global investments, 120+ IPOs/M&As, and 78+ regulatory approvals across its history.
Portfolio Highlights
Notable current and exited names include Zai Lab, Precision BioSciences, RayzeBio, Silence Therapeutics, Instil Bio, IVERIC Bio (exited), Mereo BioPharma, Compass Pathways, Ascendis Pharma, Sinovac Biotech, WuXi PharmaTech, Verona Pharma, Tarsus Pharmaceuticals, Cidara Therapeutics, and the 2026 exits Ajax Therapeutics (Lilly, $2.3B), Terns Pharmaceuticals (Merck, $6.7B), Soleno Therapeutics (Neurocrine, $2.9B), and Scientia Vascular (Medtronic, $550M).
Team
Vivo Capital is led by a five-person Managing Partner group spanning science, PE, and operations:
- Frank Kung, Ph.D., M.B.A. — Managing Partner and co-founder; biotech career since 1979, co-founded Genelabs Technologies (IPO 1991)
- Edgar G. Engleman, M.D. — Managing Partner, Chief Scientific Advisor and co-founder; Stanford professor, lead inventor of Provenge, co-founded Dendreon and Genelabs
- Shan Fu, M.A. — Managing Partner and CEO Asia Pacific; former Senior Managing Director, Blackstone Private Equity Beijing; chairs TOT Biopharm and Evaheart boards
- Gaurav Aggarwal, M.D. — Managing Partner; 20+ years as a life sciences investor, former CIO of a U.S. public investment fund and Chief Business Officer at Ocera Therapeutics
- Michael Chang, M.B.A. — Managing Partner; healthcare strategy/operations background at Johnson & Johnson, Booz & Company, and Fletcher Spaght
Operations leadership includes Cinthia Sheu (Partner, COO) and Zhanping Wu, J.D. (Partner, General Counsel, ex-FibroGen and Perkins Coie). The broader investment team spans ~40 additional partners, principals, analysts, and investor-relations staff across offices in Palo Alto, China (since 2007), and Singapore (since 2023).
Decision Process
Not explicitly disclosed. Given the firm's scale (five Managing Partners, ~40-person investment team, four concurrent fund strategies), decisions are almost certainly made through an investment-committee structure rather than a single decision-maker.
Founder Preferences
Vivo's team bios emphasize deep scientific/clinical pedigree (multiple Ph.D./M.D. partners with drug-development and translational research backgrounds) paired with commercial operating experience, suggesting a preference for founding teams that combine strong science with demonstrated execution or prior exits.
Geographic Focus
Global, with the heaviest concentration in the United States (headquarters: Palo Alto) and China (office since 2007), plus a growing Southeast Asia presence via its Singapore office (since 2023) and, as of 2026, its first European buyout (Dutscher Group, France).