Hong Kong's ORI hits first close on Fund II, exits Kymab
Hong Kong healthcare-focused VC firm ORI Capital has reached a first close of $112 million on its second fund and exited its largest investment, UK biotech developer Kymab, as part of a $1.1 billion deal.
A second close that would take Fund II past 50% of its $400 million target is currently being finalized, according to a source familiar with the situation. A third close is expected by the end of 2021.
Most of the LPs, including Shenzhen-based Hepalink Pharmaceutical, also backed Fund I, which closed at $200 million in 2016. Hepalink contributed $40 million to Fund II, according to AVCJ Research. LPs in Fund I include Tasly, a Tianjin-based medicine producer that makes direct investments in biotech start-ups.
Meanwhile, ORI has achieved a multiple of 2.8x on its exit from Kymab. The VC firm and Hepalink co-led a $100 million Series C round for the clinical-stage drug developer in 2016. ORI made two follow-on investments in 2019 and 2020.
Kymab is being acquired by France's Sanofi, which has agreed to pay $1.1 billion upfront plus up to $350 million upon achievement of certain milestones. Kymab’s investors also include Wellcome Trust, the Bill & Melinda Gates Foundation, Malin Corporation, CF Woodford Equity Income Fund, and Woodford Patient Capital, all of which supported the Series C.
Founded in 2010, Kymab focuses on immune mediated diseases and immuno-oncology using what it calls the most comprehensive antibody platforms available. The sale gives Sanofi full rights to its flagship antibody therapy, which has the potential to treat a range of inflammatory disorders and immune-related diseases, as well as a cancer treatment in phase-two trials.
ORI’s new fund will follow the same strategy as its predecessor, using a hedge fund-style quantitative analysis system called ORIzon to target therapeutics, drug delivery, and diagnostics companies globally. Investees will address major diseases or diseases with high mortality rates.
“There are two principal challenges in the healthcare investment field: identifying investment targets; and obtaining comparable scientific, technological and business information to provide a competitive landscape for the firm’s portfolio of companies,” Simone Song, founder of ORI, said in a statement.
“ORIzon provides broad coverage of relevant companies, profound analysis of the competitive landscape, as well as substantial accessibility connecting investment targets.”
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