MCI BioVentures takes bet on health insurance with Med Casco deal

2010-09-08

MCI BioVentures, the pharma & healthcare arm of the leading Polish venture capital group MCI Management, has paid PLN 0.38m (€0.1m) for 50% of shares in Med Casco, a start-up distributor of health insurance policies. BioVentures has also committed to double the investment within six months, taking its stake to 60%. The transaction takes the number of companies in the fund’s portfolio to four. At least one other investment is expected to be finalised before the end of the year.
According to MCI BioVentures CEO Grzegorz Gromada, Med Casco will shortly launch operations and should generate first revenues before the end of the year. The company will offer health insurance policies in collaboration with InterRisk TU Vienna. They will be distributed through a network of partners, such as leasing firms. According to Mr. Gromada, the uniqueness of its model lies in the fact that policy holders will not be tied to specific clinics. In 2011 BioVentures expects Med Casco to generate revenues of several million zlotys and to earn a profit of PLN 1m (€0.25m). The assumption is that no further capital increases will be necessary and that Med Casco will become self-financing already next year.
Meanwhile, BioVentures is working on a “bigger investment” in an unnamed biotech firm, to be completed by the end of December, Mr. Gromada revealed.