PAG commits $250m to Chinese pharma company

Weijian Shan, chairman and CEO of PAG, has been appointed chairman of the eight-member board of Bicon Pharmaceutical.

Founded in 1997, Bicon is a wholly foreign-owned company with institutional investors including China Everbright, China Construction Bank, Sequoia Capital, Singapore's United Overseas Bank and SIG. It develops active pharmaceutical ingredients (API), modern Chinese medicines, generic drugs, bio-pharmaceuticals and vaccines among other products.

PAG's investment will be used to support manufacturing and research capabilitie as well as acquisitions. In recent years, Bicon has acquired and integrated a number of pharmaceutical companies in China, including Wuhan Wujing Pharmaceutical, Jiangsu Kangbao Pharmaceutical and Chengdu Changqing Pharmaceutical. It has also made a strategic investment in Kaifeng Pharmaceutical.

Commenting on the transaction, Zongsong Li, founder of Bicon Pharmaceutical, said: "PAG shares our vision and is expected to bring its resources and operational capabilities to help us build our core competence and strengthen our industry leadership position, in addition to bringing in word-class corporate governance."

PAG last year completed a first close of more than $1.7 billion for its debut Greater China buyout fund. PAG Asia I has a full target of $2.5 billion.

In September 2011, it raised $900 million for an Asia-focused distressed asset fund. This vehicle falls under PAG's absolute returns strategy, which is the responsibility of Chris Gradel, PAG's founder and absolute returns managing partner.

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• Topics
• Healthcare
• Greater China
• Investments
• healthcare
• China
• PAG
• Pharmaceuticals
• buyout