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.