Asta, in collaboration with its third-party managing agency at Lloyd’s, has announced the receipt of “in-principle” approval for an innovative syndicate-in-a-box (SIAB) aimed at revolutionising the insurance landscape for the biotech sector.
This initiative, spearheaded by MCI Syndicate 1966 supplemented by Lloyd’s consortia, is set to introduce a pioneering insurance product designed to expedite the development of new therapeutic drugs.
Scheduled to commence underwriting operations from April 2024, Syndicate 1966 is poised to offer a transformative solution by providing insurance coverage for clinical trial funding in the event of trial failure.
Leveraging a novel underwriting methodology and technology platform, the syndicate aims to mitigate the financial risks inherent in medical innovation and research, thereby facilitating growth in the therapeutic drug pipeline.
The innovative product addresses a longstanding challenge faced by biotech entrepreneurs, investors, and innovators, who often struggle to secure sufficient funding for their ventures without compromising equity or control.
Historically, the biotech industry has encountered limited appetite from lenders and structured finance providers, making access to adequate financing a significant obstacle.
Commenting on the development, Lorraine Harfitt, CEO of Asta, expressed enthusiasm for the partnership with MCI and the potential of clinical trial funding insurance to meet substantial unmet demand.
She underscored Lloyd’s pivotal role in fostering societal advancement through innovation and technology-enabled underwriting.
Phil Trafford, CEO of MCI, highlighted the collaborative nature of the initiative, emphasising its ability to promote medical innovation while driving profitability for the Lloyd’s market.
Trafford expressed gratitude for Asta’s guidance throughout the process, emphasising their expertise in navigating Lloyd’s and streamlining the approval process.
