PAG acquires control of biosimilars firm Hisun BioRay

Asia-focused Hong Kong-based private equity firm PAG has executed a final agreement to acquire a controlling interest in Zhejiang Hisun Pharmaceutical’s (SHA: 600267) subsidiary Hisun BioRay Bio-pharmaceutical Co.

PAG will acquire 58% of Hisun BioRay for around 3.8 billion renminbi (~$540 million). Zhejiang Hisun will continue to retain 42% ownership. This acquisition will be the largest private equity investment in China’s biotechnology industry to date, the companies claim.

Established in January 2019, Hisun BioRay has been a core business division and the platform for the R&D, manufacturing and sales of biologic antibody-based drugs of Hisun Pharmaceutical. State-owned Hisun Pharmaceutical entered into the biological pharmaceuticals segment in 2003. Over 40 potential investors were vying for a controlling share of the young company, according to Hisun chairman Guoping Jiang.