After casting 4 "Hengrui", most of "Shanghai Pharmaceuticals", Hillhouse has made money again!

Hillhouse Ventures made another move, this time from Duoxi Bio.

On May 8, Hangzhou Duoxi Biotechnology Co.

Hillhouse Ventures has publicly invested in more than 20 medical projects this year.

Hillhouse Ventures, as the catcher of Hillhouse Capital’s early venture capital projects, Hillhouse Capital’s founder and CEO Zhang Lei stated at the 2020 Hong Kong Stock Exchange Biotechnology Summit held on September 1, 2020, “Before Hillhouse Capital For projects that cannot be done, the smallest investment is only 2 million yuan, and you can invest for less than hundreds of thousands of dollars.

From 2021 to the present, Hillhouse Ventures' rhythm is still intensive, "almost one project per week," an industry insider said.

With such an intensive investment rhythm, coupled with the economic turmoil caused by the epidemic, in the "cold winter of capital", the "landlord's house" has sufficient surplus food.

To be sure, most of the money will flow into the medical industry.

At the 2020 Hong Kong Stock Exchange Biotechnology Summit held on September 1, 2020, Hillhouse Capital founder and CEO Zhang Lei stated that his institution has invested more than 120 billion in the medical field.

Zhang Lei said at the meeting that his judgment on the current development stage of life sciences and biotechnology is: we are in a "Cambrian" era in which technology and product innovations have exploded.

At the Asian Financial Forum in January this year, he made it clear that since the outbreak of the new crown epidemic, the medical system needs to undergo comprehensive reforms.

Shigekura Medical

In the ever-changing medical field, Hillhouse Capital’s role in the medical industry is not an exaggeration.

Although innovative drug companies are now blooming everywhere, PD-1/PD-L1 "bath for everyone", but in 2013 and 2014, when there were not many people in the world taking PD-1/PD-L1 immunotherapy, Zhang Lei He led Hillhouse to start the layout, "Take several entrepreneurs to Boston to discuss new immunotherapy targets with scientists in the laboratory.

In 2014, BeiGene just launched the A round of financing.

Hillhouse ushered in a bumper harvest in the pharmaceutical field in 2020, with 42 IPOs (including 27 VC/PE investments and 15 cornerstone investments), of which 22 medical projects accounted for half of the total.
Among them, the projects invested in the primary market include Jakosi, JD Health, Deqi Pharmaceutical, Genting Xinyao, Jiahe Biological, Tianchen Medical, Junshi Biological, Ganli Pharmaceutical, Peijia Medical, Tianjing Biological, etc.
, as cornerstone investors Participants include Rongchang Bio, WuXi Junuo, Simcere Pharmaceuticals, Hygeia Medical, Kangji Medical, and Platinum Pharmaceuticals.

Every dynamic and project progress of these companies can arouse heated discussions in the industry.

In February of this year, Hillhouse’s fourth quarter US stock holdings revealed that Hillhouse held 95 companies’ stocks in the US stock market, with a total market value of US$12.
5 billion.
A total of 52 biomedical companies are held, ranking first in all industries in terms of number, with a market value of US$4.
613 billion, ranking second.
Of the 28 new companies that entered and increased their holdings in the fourth quarter, 15 were companies in the biopharmaceutical field.

Penetrate the whole industry

Hillhouse's investment projects in the medical field are penetrating the entire medical industry chain, from innovative drugs, CRO, medical equipment, AI pharmacy, Internet medical, and even research hospital projects.

It seems that Hillhouse is using Hillhouse Ventures to help companies cross the valley of death, and then through Hillhouse Capital as a growth-stage investment, it will be able to connect the capital market relatively quickly.
In terms of the layout of investment projects, we will achieve a win-win situation for the entire industrial ecology.
After the enterprise crosses the valley of death and invests it as a growth stage through Hillhouse Capital, it will be able to connect this capital market relatively quickly.
"

Of course, Hillhouse's catcher in the medical field is not limited to Hillhouse Ventures, and the projects it invests in have become the sharpest tentacles for new projects in the medical field.
Hillhouse invests in ecological enterprises, and then the ecological companies in these industries incubate new projects and new companies.
It can be described as "one life two, two life three, and endless descendants".

CXO giants WuXi AppTec and Tigermed are the best examples.
They also played the role of industry investors.
Zhang Lei once said: "We invested in eco-level companies such as WuXi AppTec and Tiger to do CRO and CMDO for biotechnology companies, and they have become incubators for all companies, which has formed a very good ecology.
"

WuXi AppTec's 2020 investment income and fair value changes achieved 606 million yuan and 52,271,400 yuan respectively, an increase of 870 million yuan year-on-year, mainly due to the increase in the market value of the investment target, which increased the fair value change income and investment income.

In 2020, WuXi AppTec has successively acquired AppTec, Crelux, Huiyuan Biological, WuXiClinical Development, Pharmapace Inc.
, Nanjing Mingjie Biomedical Testing and other companies.
WuXi AppTec has also made a series of equity investments in the upstream and downstream of the industrial chain, such as equity investment in Beihai Kangcheng, subscribing for 1 million newly issued shares of "D3 Bio" for a total of 21 million U.
S.
dollars and holding approximately 16.
67% of the equity.
It also invested in WuXi Juno, biotechnology company Simcha Therapeutics, drug development company insitro, and biotechnology company Immunocore.
According to incomplete statistics, WuXi AppTec has made 22 public investment events in the medical field since 2015.
In addition, WuXi AppTec has also invested and incubated nearly 80 companies in the medical and health field through investment institutions Tong and Yucheng Capital, many of which are high-quality customers of WuXi AppTec's companies.

Since 2016, Tigermed has also vigorously established a medical industry fund, mainly investing in medicine, general health, biomedicine, cell therapy, biochips, etc.
When Tigermed was listed on the Hong Kong Stock Exchange in 2020, its investment income accounted for 30% of the net profit, and 60% of the funds raised were used for external expansion.
2020 Tigermed has frequently participated in fund investment.
On October 20 of that year, Tigermed issued 6 announcements to participate in investment funds, with a total investment of 880 million yuan.
In 2020, Tigermed has invested in nearly 10 pharmaceutical companies.

Grab the new three forces

In addition to investment institutions represented by Hillhouse, and players who are determined to build an ecosystem in the medical industry represented by WuXi AppTec and Tigermed, they are looking for good projects and good companies.
Another force is also emerging.

That is the major pharmaceutical companies in the transition period.
BD has awakened their consciousness.
They urgently need innovative companies to provide them with innovative blood and accelerate their transformation.
For example, Hengrui looks at 5,000 BDs a year, and CSPC filters thousands of items a year.

Hengrui has already started to make a move.
At the beginning of this year, Hengrui made a billion-dollar equity investment for the first time, and signed a strategic cooperation agreement with Yingli Pharmaceuticals to introduce Class 1 new drugs under development by Yingli Pharmaceuticals to supplement its development in hematological tumors.
The layout of the field.

In a survey summary of Hengrui on February 24, Hengrui confessed that its innovation is under pressure.
In the future, it will do research and development through the establishment of new companies, high-priced authorized introduction or equity investment.
And investment thinking is also changing.
Previously, BD projects were thought to be too expensive, but now they feel that “expensive is justified”.

CSPC is also accelerating its innovative layout.
Chairman Cai Dongchen once said, “I have the ability to build a team to do it myself.
If I can’t do it, I buy it.
After I buy it, let the CRO do clinical work for you, and get several exclusive products approved.
” This is evident from the recent 200 million yuan cooperation between CSPC and Beierda Pharmaceutical, 170 million yuan and Connoa Biosciences to introduce new drug development and commercialization rights, which can be seen in the investment.
And its annual report also indicated that the group will still actively look for acquisition and cooperation opportunities to strengthen its product pipeline.
Its management has also stated to the public that the estimated BD contract amount (including down payment and various milestone payments, excluding sales commissions) in the next two years is about 5 billion yuan.

With the upsurge of domestic pharmaceutical innovation and the improvement of capital withdrawal mechanism, my country's medical investment field will see a wave of investment and mergers and acquisitions in 2020.
For a while, the "bubble theory" has been raging, and worries about when the bubble will burst have also begun to emerge.

When innovative drugs will enter the deep water zone and enter the most difficult time, when the model advantage is no longer and the new regulations of the science and technology board release tight signals, who has the "scientific innovation attribute" and who really has two brushes will see the truth.

It is foreseeable that under the condition of limited high-quality targets, the situation of grabbing projects in 2020 will still be staged; truly innovative projects and companies will inevitably be favored by capital; it can also be foreseen when everyone is worried.
After the burst of the "bubble", capital and major pharmaceutical companies must be the main drivers of mergers and acquisitions in the industry.