China: Opportunities to Access Partnerships and Capital

shanghai

Would You Like To Expand Your Business Into China?

Or Perhaps You Seek An Investor or Development Partner?

Through our local partners in China, we can help you navigate this rapidly growing, but complex market.

Indeed, China is a large and growing opportunity for Western life science companies, as:

  • Life Science in China is Booming – China’s life science industry has been growing at more than 20%+ per year, and is expect to continue growing at that rate in the foreseeable future due to massive government incentive and the large pool of returnees that have come back to China to start new businesses.
  • Cross Border Deal Activity is Strong –  Approximately 87% of all of the life science partnerships in China over the last several years have been cross border partnerships, and the flow of technology has primarily been into China.
  • China is Hungry for New Technology – Although China:  1) has quickly acquired talent via the large pool of returnees from the US, and EU, 2) has quickly built life science infrastructure via the many new life science parks, China cannot quickly build a solid foundation of life science technology and must therefore partner in.
  • Chinese Life Science Companies and VCs are Investing in Western Companies – Chinese companies as well as China based VCs are investing in Western SMEs, taking equity, and then setting up JVs in China. In some cases, these funds are denominated in US dollars. 
  • Conventional Deal Structures More Common– Increasingly, Chinese companies are using standard deal structures (upfront/milestone/royalty) and territory rights. Backended, royalty-only deals are no longer as common as they once were.
  • Deal Terms Are Improving – Given the competition for good technology, life science deal terms are steadily improving, and are approaching Western levels.
  • Cross Border Academic Partnerships are Taking Place – Chinese companies are partnering with Western universities and research institutes to develop early stage technology.  Chinese universities and research institutes are entering into drug discovery collaborations with Western drug discovery companies.
  • The Time for China is Now – A growing market, fueled by government and corporate spending, coupled with improving deal structures and terms, means that now is a perfect time to explore relationships with Chinese companies and/or investors.

In collaboration with our local colleagues, we can assist with the following:

  • Licensing – Chinese companies are actively seeking assets for development and commercialization in China. Late-Stage and Commercial assets from the US and Europe are in especially high demand.
  • Valuation – We have experience in preparing market opportunity assessments and forecasts for the China market. 
  • Fundraising – Chinese investors are actively seeking investment opportunities in the US and Europe. We can provide support in developing presentations, executing a marketing effort, and make the introductions necessary to secure financing. 

 

If you have interest in exploring China opportunities further, we would be happy to discuss them with you.  Please contact us by using the form below:

 

 

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