Zhaoke Ophthalmology Pharmaceutical (ZKO), an indirect subsidiary of Hong Kong-listed Lee’s Pharmaceutical Holdings Limited, has garnered as much as $145 million in its Series B round co-led by Hillhouse Capital’s Hillhouse COFL and TPG Asia, per a filing with the Stock Exchange of Hong Kong (HKEx) on October 11.
The round was also joined by nine other investors including Shanghai-based Loyal Valley Capital, US healthcare investment firm OrbiMed Group and Aier Eye Hospital. The parties signed a share subscription agreement on October 9.
Following the deal, ZKO’s largest shareholder Lee’s Pharma stake will come down from 48.50 per cent to 34.10 per cent while Hillhouse and TPG will own 7.441 per cent each. Loyal Valley will also gain 4.039 per cent stake in ZKO.
The transaction is expected to be completed by January 31, 2021.
Set up in 1994 in Hong Kong, Lee’s Pharmaceutical is engaged in the therapeutic areas of cardiovascular and infectious diseases. In recent years, it has expanded its research and development efforts across ophthalmology, oncology, woman health, urology and dermatology. The company got listed on the main board of HKEx in 2010.
ZKO was founded by Lee’s subsidiary China Ophthalmology Focus Limited in Hong Kong. It has partnerships with international companies such as US ophthalmic specialist IACTA Pharmaceuticals.
Lee is considering a possible spin-off and separate listing of shares of China Ophthalmology Focus, per its dated filing on July 9, 2020. China Ophthalmology Focus had closed a $50 million strategic investment from Lee Pharmaceutical’s Lee International and Wealthy Chance in May 2019.