HK-based buyout firm Baring to invest $100m in Chinese drug maker Hutchmed

Source: Michael Longmire/Unsplash

Hong Kong-based buyout firm Baring Private Equity Asia has agreed to purchase $100 million worth of shares in Hutchison China MediTech (Hutchmed), a US- and London-listed, commercial-stage, biopharmaceutical firm that aims to treat cancer and immunological diseases.

Baring, one of Asia’s largest private equity (PE) investment houses, plans to acquire nearly 3.28 million American depositary shares (ADS) in Hutchmed at $30.5 apiece through a private placement, according to a statement on Thursday.

Baring is joining Hutchmed’s major shareholders, including US-based investment manager Capital Group, insurer Prudential, and global PE powerhouse General Atlantic, to fund the firm’s ongoing research and clinical development.

Hutchmed said the fresh proceeds would support the growth of its commercialisation capabilities both in China and globally.

Hong Kong-based Hutchmed specialises in the discovery and global development of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. Since its inception in 2000, the firm has expanded into an in-house scientific team of over 600 professionals across China, the US, Europe, and Australia.

It has advanced 10 cancer drug candidates from discovery into clinical studies around the world. In its home market of China, the firm has fully commercialised two novel oncology products, ELUNATE and SULANDA; while in the US, it initiated the filing of its first New Drug Application (NDA) to the US Food and Drug Administration (FDA) in December 2020, expecting to complete the NDA submission in H1 2021.

“We are rapidly expanding global development of our ten oncology assets, all of which were discovered in-house at Hutchmed, and are planning to initiate 8-10 registration and registration-intent studies in 2021,” said the firm’s CEO Christian Hogg in the aforementioned statement. He said the addition of Baring to its existing shareholder base will help Hutchmed in its next stage of development.

Founded in 1997, Baring manages a PE investment programme, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions with a particular focus on the Asia Pacific region, as well as investing in players globally that can benefit from further expansion into Asia. With $23 billion in total assets under management (AUM), it also manages dedicated funds focused on private real estate and private credit.

The firm has over 195 employees located across offices in Hong Kong, China, India, Japan, Singapore, Australia, and the US. It currently has 39+ portfolio companies active in Asia with a total of 230,000 employees and annual sales of about $32 billion.

Its latest and biggest fund, The Baring Asia Private Equity Fund VII, closed at a hard cap of $6.5 billion in January 2020. The fund size exceeded Baring’s initial target by $1 billion and is 60% larger than its previous fund.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.