Royalty Pharma opens Hong Kong base as Chinese biotech deals surge
In May, Royalty Pharma, recognized as the largest purchaser of biopharmaceutical royalties globally, inaugurated its inaugural office in the Asia-Pacific region, located at IFC in Central, Hong Kong. This expansion coincides with a surge in out-licensing agreements among biotechnology companies in mainland China, which have experienced a 30% year-on-year increase in business development deals through May 31, while the total value of these deals has skyrocketed by 87%, as reported by HSBC on June 23. Kenneth Sun, the senior vice-president and Asia head at Royalty Pharma, emphasized the necessity for Chinese biotech firms to explore royalty financing as an alternative funding source. Established in 1996 and based in New York City, Royalty Pharma finances drug developers and research institutions in exchange for a portion of future sales.
Key facts
- Royalty Pharma opened its first Asia-Pacific base in Hong Kong in May.
- The office is located at IFC in Central, Hong Kong.
- Chinese biotech out-licensing deals hit record highs.
- Total number of Chinese biotech business development deals rose 30% year on year through May 31.
- Total deal value surged 87% over the same period.
- HSBC report on June 23 provided the deal data.
- Royalty financing offers an alternative to traditional fundraising amid US investment restrictions.
- Kenneth Sun is senior vice-president and head of Asia at Royalty Pharma, formerly at Morgan Stanley.
Entities
Institutions
- Royalty Pharma
- Morgan Stanley
- HSBC
Locations
- Hong Kong
- IFC
- Central
- New York City
- United States
- China