China's Panacea, Dell family office raise $200m SPAC

Orion Biotech Opportunities Corp. will focus on biotechnology and life sciences opportunities in North America, Europe, and Asia. There is a particular interest in “companies with the potential to drive transformational change through the development and commercialization of novel therapies or technologies,” the prospectus notes.

The SPAC was established by James Huang, founding manging partner of Panacea, and Chrystyna Bedrij Stecyk, co-founder and principal of Griffin Securities, an equity research and investment banking business specializing in biotechnology, technology, and energy. Two of the remaining five board members work for MSD Partners, the Dell family office.

The sponsor entity is described as an affiliate of Panacea and MSD – and it appears to be controlled by Huang and Bedrij Stecyk. The SPAC is expected to leverage Panacea’s industry networks as well as its execution and operational expertise, and MSD’s investment experience and relationships.

The Panacea team spun out from KPCB in 2017 and closed its debut fund at $180 million two years later. Prior to KPCB, where he built the China healthcare practice from scratch, Huang held positions with Bristol-Myers Squibb, SmithKline Beecham, and GlaxoSmithKline, before entering private equity through Vivo Ventures. Panacea focuses on incubation and Series A rounds.

Orion Biotech sold 20 million units at $10 apiece. Each unit comprises one class A ordinary share and one-fifth of one redeemable warrant. Each whole warrant can be converted into a common share at a price of $11.50 per share. MSD also acquired $20 million in class A shares via a forward purchase agreement.

Meanwhile, the SPAC sponsor bought $8.5 million in warrants. In addition, the sponsor and management subscribed to common shares for a nominal sum that have converted into a 20% stake in the listed entity.

Once a target is identified, a majority of investors must vote in favor of the transaction. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash. If there is no deal within 24 months of the offering, investors get their money back.

There has been an unprecedented amount of SPAC fundraising activity globally over the past 18 months. Various Asia-based PE firms and individuals with industry experience have launched these structures, often with global remits but targeting assets that can benefit from expansion in the region. Similarly, Asian companies are being targeted by SPACs of all kinds.

More recently, fundraising has been curtailed by several warnings and one regulatory intervention by the US Securities & Exchange Commission (SEC).

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• Topics
• Greater China
• North America
• Healthcare
• IPO
• Fundraising
• China
• Panacea
• SPAC