CBC strikes China's first royalty-based biomedicine deal
R-Bridge Fund, a credit vehicle established by healthcare-focused private equity firm CBC Group, has completed what it claims is the first royalty-backed investment in China’s biomedicine space.
The fund's USD 40m commitment to YishengBio is backed by royalties from a rabies vaccine that has been administered more than 100m times in China. The proceeds will go towards the development of a COVID-19 vaccine and clinical trials of rabies vaccines for global expansion.
Founded in 1994, YishengBio specialises in vaccines and medicines for cancers and infectious diseases. It is headquartered in Beijing with operations in the US, Singapore, and Cambodia. Last year, the company secured a USD 130m Series B round led by OrbiMed and Oceanpine Capital.
CBC raised USD 300m for R-Bridge in 2020. It issues credit financing to companies backed by royalties, revenue interests, and other cash flows. It operates independently of CBC's core PE offering as a complementary and non-competing business strategy.
Healthcare royalty funds typically provide debt-based financing to pharmaceutical companies in return for a portion of the royalties on drugs they are developing. Profits derived from the royalties aren't taxed at the corporate level; they are distributed to shareholders in the form of a dividend, which is taxed as personal income. This avoids double taxation, thereby enabling higher returns.
"The investment provided by R-Bridge Fund will not dilute the equity of YishengBio, but it brings the endorsement of CBC Capital. This can boost market confidence and support an acceleration of YishengBio's development," CBC said in a statement.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.