China's pharma industry is rapidly maturing, and Vivo Ventures aims to dedicate nearly half of its latest $375 million fund to bets on Chinese drugmakers, Reuters reported.
The U.S. venture outfit has set its sights on Chinese drug companies in commercial stages with its seventh fund, the news service reported, expecting groups in the country to make the jump to the larger U.S. market. Vivo, which has more than $1 billion under management, also plans to inject 55% of the new fund into U.S. makers and developers of therapeutics.
"We hope to create synergy between U.S. and Chinese companies, and maximize shareholder value," Vivo Managing Partner James Zhao said, as quoted by Reuters. "Cooperation is better than competition and alliance is better than isolation."
Major drugmakers from the U.S. and Europe can’t seem to grow their footprints in China fast enough. With the world's second-largest national economy and consumers with money for modern medical treatments, China offers major growth opportunities to drugmakers from inside the country and overseas. And venture capital firms like Vivo, which already has a dozen China investments, are seeking their share of the spoils.
ALSO: Check out our new ebook: Including China in Drug Development Programs: Opportunities & Challenges
Takeda opens new drug development center in China
AstraZeneca's R&D chief in China lays out $100M strategy
Quintiles to hire 500 for new BPO hub in China