BioRay Pharmaceutical, a PAG-backed Chinese autoimmune-focused biopharmaceutical company, has sealed an agreement to raise over 1.5 billion yuan ($217.9 million) in a strategic round that values it at 13 billion yuan ($1.9 billion) pre-money.
An Asian sovereign wealth fund and state-owned investment firm from eastern China’s Zhejiang Province participated in the deal, according to a statement on Thursday.
The transaction marks BioRay’s first capital raise since its spinoff from Chinese pharmaceutical firm Zhejiang Hisun Pharmaceutical in 2019.
PAG, an Asia-focused investment firm with over $50 billion in assets under management (AUM), acquired 58% of BioRay for about 3.8 billion yuan ($551.9 million), while Hisun Pharmaceutical retained 42% ownership in BioRay immediately post the acquisition.
BioRay currently has four marketed products focusing on autoimmune diseases. In addition, it is developing multiple products in Biologics License Applications (BLA) or Phase III clinical trial stage as well as more than 10 pipeline drugs in Phase II clinical trial stage or earlier.
The BLA is a request to the US Food and Drug Administration (FDA) for permission to introduce or deliver for introduction, a biologic product into interstate commerce.
The firm booked over 900 million yuan ($130.7 million) in revenue last year, with a compounded annual growth rate (CAGR) of over 50% from 2019 to 2022.
It has over 1,400 employees globally, with offices in Taizhou, Hangzhou, Shanghai, and San Diego.
BioRay plans to invest the new financing in the development of its pipeline drugs and in-licence products. The firm will also update its manufacturing facilities to support the commercialisation of the pipeline products.
“By bringing in new global and domestic investors with deep financial resources, rich industry knowledge, and strong local connections, BioRay can further accelerate its development and continue to explore future capital market opportunities both globally and domestically,” said Kevin Xu, partner at PAG Private Equity, in the statement.
Hisun Pharmaceutical, which remains BioRay’s second-largest shareholder with a 40.32% stake after the deal, disclosed during its half-year financial report meeting in August 2022 that BioRay would consider a public listing on the Hong Kong stock exchange or the Nasdaq-style STAR Market in Shanghai.
“It will depend on the market condition, and BioRay will keep its option open,” the Shanghai-listed shareholder wrote online, in response to an investor’s question.