Two Chinese biotech companies are set for more than US$4 billion in investments, adding to bets that the country’s transition from production of copycat medicines to innovating new treatments will drive profit.
McKinsey & Co said venture capital investment in China’s healthcare industry surged from US$1 billion in 2013 to US$11.7 billion in 2017
China Biologic Products Holdings Inc is considering an offer by shareholder CITIC Capital Holdings to pay about US$3.5 billion for all stock it doesn’t already own, the US-listed maker of plasma products such as immunoglobin said.
WuXi Biologics Cayman Inc, which supplies a platform for developing biologics, said its controlling shareholder is offering to sell a stake in the company for about US$505 million.
Investors are looking for bets on growth in China’s drug industry, which has soared in market value this year amid expectations the drive for innovation will pay off. Surges in the number of cancer, heart disease and diabetes cases are driving sales of pharmaceuticals, which are expected to rise to as much as US$175 billion by 2022, according to researcher Iqvia Holdings Inc.
Venture capital investment in China’s healthcare industry surged from US$1 billion in 2013 to US$11.7 billion last year, according to McKinsey & Co.
CITIC Capital’s US$110 a share offer amounts to about 34 percent more than the last-traded price before the June 18 announcement.
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