Asymchem Laboratories (Tianjin) Co., Ltd, a renowned Contract Development and Manufacturing Organization (CDMO) based in China and listed on the SZSE under the ticker (002821), has unveiled a significant private placement initiative. The company will issue 18,700,000 A shares at a price of RMB 123.56 per share. Hill House Capital, a prominent investor with a portfolio that includes heavyweights such as Beidu, Tencent, and JD.com, is poised to subscribe to the entire tranche, amounting to a substantial RMB 2.31 billion. This capital inflow, which is transferable within a period of 18 months, also comes with the right for Hill House Capital to nominate a candidate for Asymchem’s board of directors. Furthermore, Hill House Capital is committed to bringing in orders valued at RMB 800 million for the CDMO. Upon the deal’s completion, Hill House Capital will hold a 5% stake in Asymchem.
This move signifies the deepening integration of the “VIC” model, which encompasses Venture Capital (VC), intellectual property (IP), and Contract X Organization (CXO), indicating a trend where pharmaceutical outsourcing service companies are set to collaborate more intimately with VCs. This symbiotic relationship allows venture capital funds to render value-added services to their pharmaceutical investments, leveraging their close ties with high-quality CDMO/CMO and CRO entities. Concurrently, pharmaceutical outsourcing service companies can forge alliances with venture capital funds, particularly those with specialized knowledge and a broad reach in the innovation space. The latter’s investments represent crucial new customer segments and business opportunities for pharmaceutical outsourcing service companies.
Asymchem has noted that Hill House Capital, with its presence in 52 innovative pharmaceutical companies and a focus on the medical and health sectors, particularly biopharmaceuticals, is in harmony with Asymchem’s core business.
