Ally Bridge supports WuXi PharmaTech take-private

The consortium is willing to pay $46.00 per American Depository Share (ADS) for all shares it does not already own, according to a regulatory filing. This represents a 16.4% premium to the April 29 closing price and values WuXi PharmaTech at approximately $3.29 billion.

Subsequent to the announcement of the offer, the company's stock has gained 14.1%, closing at $45.18 on May 1.

The deal would be financed through a combination of third-party debt and equity provided by existing investors rolling over their holdings. Apart from Ge Li, WuXi PharmaTech's founder and chairman, and Ally Bridge, the consortium members have not been disclosed. As of April 2015, Fidelity Investment Management held a 10% stake in the business, while Schroder Investment Management and Wellington Management had 9.2% and 7.5%, respectively.

Wuxi PharmaTech - also known as WuXi AppTec - was set up in 2000 by four founders in a single laboratory. It started offering pharmaceutical and biotechnology R&D outsourcing services the following year. Multinational pharmaceutical companies were able to contract out the synthesis of small molecules that occurs at the beginning of the drug discovery process to lower cost Chinese laboratories.

Following an IPO in 2007, WuXi PharmaTech built an integrated R&D services platform covering the entire drug discovery and development value chain, including capabilities in genomics and bioinformatics. It has 9,000 employees and five million square feet of laboratory and manufacturing space in operation or under construction.

Earlier this year, the company launched the WuXi Healthcare Ventures Fund II with an anchor commitment of up to $50 million. The vehicle, which is targeting $200 million in total, will invest in healthcare companies in the US and China. Previous investments have been made alongside Ally Bridge, such as a Series B round of funding for Shanghai-based Hua Medicine in January.

Revenue came to $674.3 million in 2014, up 16.6% year-on-year. Of this, $492 million came from laboratory services and $182.3 million from manufacturing services. The majority of this revenue is generated from customers headquartered in the US and Europe. Net income reached $112.2 million in 2014, down from $114.6 million the year before.

Set up in 2010 by Frank Yu, Ally Bridge was originally known as Themes Investment Partners. It targeted Chinese companies in healthcare, environmental technology and agri-business. The healthcare portfolio performed particularly well and so the firm decided to forge a new path as a healthcare specialist. It was rebranded in 2013.

Ally Bridge, which reached a second close on its second fund last June, pursues a fully-fledged cross-border strategy, with investments in the US and China.

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• Topics
• Buyouts
• Healthcare
• Greater China
• Ally Bridge
• buyout
• healthcare
• China