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5 September 2019

PAG Acquires Control of Hisun BioRay

Taizhou, Zhejiang

On September 4, Zhejiang Hisun Pharmaceutical Co., Ltd. (“Hisun Pharmaceutical”) and PAG jointly announced that PAG has executed a final agreement to acquire a controlling interest in Hisun Pharmaceutical’s subsidiary Hisun BioRay Bio-pharmaceutical Co., Ltd. (“Hisun BioRay”). PAG, a leading Asia-focused private equity firm, will acquire 58% of Hisun BioRay for ~RMB3.8 billion (~US$540 million). Zhejiang Hisun will continue to retain 42% ownership. This acquisition will be the largest private equity investment in China’s biotechnology industry to date.


Established in January 2019, Hisun BioRay has been a core business division and the platform for the R&D, manufacturing and sales of biologic antibody-based drugs of Hisun Pharmaceutical. Hisun Pharmaceutical entered into the biological pharmaceuticals segment in 2003. Hisun BioRay has developed a strong portfolio in the auto-immune and oncology treatment areas. Hisun BioRay currently manufactures and markets Anbainuo® (recombinant human Tumor Necrosis Factor-ɑ receptor II: IgG Fc fusion protein for injection), a leading biosimilar drug indicated for auto-immune disorder including rheumatoid arthritis, ankylosing spondylitis and psoriasis. Hisun BioRay plans to launch Anjianning®, one of China’s first adalimumab biosimilars, around the end of this year. Hisun BioRay has end-to-end operational capabilities across the pharmaceutical value chain and currently employs more than 700 staff with offices in Taizhou, Hangzhou and Shanghai.


Jiang Guoping, Chairman of Hisun Pharmaceutical, commented, “This transaction marks an important milestone in mixed ownership reform of China’s state-owned sector. By bringing in foreign direct investment to support the development of China’s biopharmaceutical industry, Hisun Pharmaceutical can sharpen its focus while supporting Hisun BioRay’s future development. After engaging with over forty potential investors, we are excited to have PAG as our strategic partner given their deep financial resources and strong industry knowledge and experience.”


“PAG’s investment will support and accelerate the development of our pipeline and clinical trial progress, further strengthen our competitive advantage, and expand our footprint in the latest generation of innovative biologics and biosimilars.” stated Dr. Wang Haibin, CEO of Hisun BioRay.


Xiao Suining, Partner and Chairman of China for PAG, has been appointed as the Chairman of Hisun BioRay. Mr. Xiao was formerly Chairman of Ping An Bank and Shenzhen Development Bank. “We look forward to working with Hisun Pharmaceutical and the management team led by Dr. Wang to accelerate the development of Hisun BioRay,” said Mr. Xiao, “PAG has extensive experience completing complex transactions and partnering with leading companies in the state-owned sector.”


Kevin Xu, Head of PAG Growth Capital, commented “This investment represents PAG’s strong commitment to China’s biotech industry. We will continue to support Hisun BioRay’s rapid development with our investment and operational expertise.” PAG’s recent biotechnology investments include Rongchang Pharmaceuticals and Alphamab Oncology.



About Hisun BioRay

Hisun BioRay is a pioneer in China’s biopharmaceutical industry with an extensive portfolio of auto-immune and oncology products. Hisun BioRay has two R&D and manufacturing centers in Taizhou and Hangzhou, industry-leading commercial scale manufacturing capacity, full spectrum R&D capabilities from drug discovery to formulation, more than ten pipeline products in or beyond the clinical trial stage, and well-established nationwide commercial operations.



About Hisun Pharmaceutical

Founded in 1956, Hisun Pharmaceutical is a comprehensive pharmaceutical group that engages in manufacturing and commercialization across the value chain from active pharmaceutical ingredients, formulation and finished pharmaceuticals. Hisun Pharmaceutical is listed on the Shanghai Stock Exchange (SHSE: 600267) and is headquartered in Taizhou, Zhejiang province.



About PAG

PAG is a leading Asia-focused private equity firm with funds under management across private equity, real estate and absolute return strategies. PAG delivers value to its investors and portfolio companies by providing a world-class platform and an unparalleled network of local, experienced investment professionals in 10 offices across Asia-Pacific and around the world. PAG currently manages over US$30 billion in capital for some of the world’s largest institutional investors.


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