China-based pharmaceutical company Xuanzhu Biopharmaceutical, which is a subsidiary of Sihuan Pharmaceutical Holdings has raised RMB800 million, an equivalent of US$115.6 million according to statement released by the company on August 24, 2020.
The funds were primarily raised from Chinese state-owned investment company State Development and Investment Corporation (SDIC), which is now a new investor in Xuanzhu Biopharmaceutical with a stake of 18.6%, the statement noted.
“The joining of the SDIC is an affirmation of Xuanzhu Biopharmaceutical’s current achievements. We will continue to bring world-leading, unique and innovative therapeutic drugs to more clinical patients in the future,” President, R&D, at Xuanzhu Biopharmaceutical, said Dr Li Jiakui said in the statement.
“With the help of Sihuan Pharmaceutical’s extensive commercialization experience in China, as well as our outstanding R&D capabilities and localized development capabilities, we believe that Xuanzhu Biopharmaceutical can gain a competitive advantage in the ever-evolving clinical and regulatory environment in China,” he added.
The investment contract includes a clause for an equity incentive plan for Xuanzhu Biopharmaceutical’s management in building a drug R&D and production platform in China. Xuanzhu Biopharmaceutical and SDIC are also expected to work in partnership in the future in this field.
As of 2017, China was the world’s second largest pharmaceutical market, and also the biggest emerging market with its value expected to reach $175 billion by 2022.