Hong Kong PE Firm PAG Pays $540m for Majority Stake in Hisun BioRay

Hong Kong-headquartered private equity firm PAG is paying about Rmb3.8 billion (US$540 million) for a controlling stake in Chinese biopharma company Hisun BioRay, according to a company statement.

The Asia-focused PAG will acquire 58 percent in Hisun BioRay, the R&D and manufacturing platform of Shanghai-listed pharmaceutical giant Zhejiang Hisun Pharmaceutical, in what is considered as one of the biggest deals in the country’s biotechnology industry so far.

Hisun Pharmaceutical will continue to retain 42 percent ownership of the company while Xiao Suining, partner and chairman of PAG China, will come in as the new chairman of Hisun BioRay.

Established in January 2019, Hisun BioRay serves as the core business division of Hisun Pharmaceutical. With two R&D and manufacturing centers in Taizhou and Hangzhou, the firm also serves as platform for R&D, manufacturing, sales of Hisun’s biologic anti-body based drugs.

In a statement, Hisun BioRay said it has developed a strong portfolio in the auto-immune and oncology treatment areas. It manufactures and markets Anbainuo®, a leading biosimilar drug indicated for auto-immune disorder including rheumatoid arthritis, ankylosing spondylitis, and psoriasis.

Before the end of this year, the pharma firm, which has more than 700 employees, plans to launch Anjianning®, one of China’s first adalimumab biosimilars.

Hisun BioRay CEO Dr. Wang Haibin said the investment from PAG will help the pharma firm in accelerating the development of its pipeline and clinical trial progress. It will also strengthen the company’s competitive advantage and positions it further as leader in the latest generation of innovative biologics and biosimilars.

For Kevin Xu, head of PAG Growth Capital, the investment in Hisun BioRay further underscores PAG’s strong commitment to China’s biotech industry. The private equity firm recently invested in other biotech firms in China, including Alphamab Oncology and Rongchant Pharmaceuticals.

Hisun Pharmaceutical, the seller of the stake, is listed on the Shanghai Stock Exchange and is headquartered in Taizhou, Zhejiang province.