Chinese biotechs see cash again; late-stage assets most attractive

Much like in the West, biotechs in China also recently started to see cash again after a cold spell in the past two years. Promising, late-stage assets are most attractive to investors, especially Chinese state-owned venture capitals, said speakers at Bio China International Convention in Suzhou.

“Chinese yuan denominated funds, now the major investors in China, are usually owned by state-owned capitals. These investors are conservative, risk-wary and prefer stable assets,” said Kevin Chen, funding partner at Biotrack Capital, a US4/CNY dual currency fund based in Shanghai.

Unlike their American counterparts who would bear risks by going after new targets or advanced modalities, Chinese investors prefer assets using verified technologies or against reliable targets. Thus, differentiation is even more important to attract them, Mr Chen continued.