Legend Capital, a fund management arm of Chinese conglomerate Legend Holdings, has led a $150-million Series E funding round for ClinChoice to help the Sino-US contract research organisation (CRO) expand its business and service offerings globally.
Beijing-based life insurance company Taikang Life Insurance and healthcare investment firm Sherpa Healthcare Partners participated in the deal, alongside existing investors Lilly Asia Ventures and Apricot Capital, said ClinChoice in a statement on Tuesday.
ClinChoice, which counts Goldman Sachs and DFJ Dragon Fund among its earlier investors, was founded by Xin Ke, a pharmaceutical industry veteran who specialises in data management and statistical programming, and John D. Balian, who previously founded consulting firm MediVista before his tenures at companies including Johnson & Johnson and Pfizer.
With over 3,000 employees worldwide, ClinChoice provides integrated clinical development services to pharmaceutical, biotech, medical device, and consumer health clients in the US, China, Europe, and Southeast Asia. Its solutions cover clinical operation, project management, biostatistics, regulatory affairs, feasibility research, clinical safety management, nature medicine/traditional Chinese medicine, and Phase I clinical research, among others.
It claims to have completed more than 1,000 Phase I-IV full-service clinical projects and supported over 100 innovative drug registrations, clinical design, and development over the past 25 years.
“We are very positive on the growth outlook of the CRO industry… Going forward, we will work closely with the management team to improve its existing business, attract industry talent and launch new strategic initiatives,” said Hongbin Zhou, co-chief investment officer of Legend Capital, in the statement.
The global CRO market is expected to cross $88.8 billion in 2028 from $50.1 billion in 2021 at a compound annual growth rate (CAGR) of 8.5% in the period, according to a 2021 report released by Research and Markets. The market research firm expects the market to ride on driving factors including a surge in R&D expenditures and outsourcing activities, as well as a rise in the number of clinical trials, although the dearth of skilled professionals may hinder its growth.
Founded in April 2001, Legend Capital focuses on early-stage venture capital (VC) and late-stage private equity (PE) investments across the fields of healthcare, advanced manufacturing, technology, consumption, and corporate services. As one of the most active investment companies in China, it had over 60 billion yuan ($9 billion) in assets under management (AUM) by the end of 2021, according to Chinese market data provider CVSource.
The firm has built a portfolio including companies like battery giant Contemporary Amperex Technology Co (CATL), auto chip startup Horizon Robotics, Toyota-backed self-driving tech company Pony.ai, and Beijing ESWIN Technology Group, a provider of artificial intelligence of things (AIoT) chips and services. It is also an investor in commercial launch vehicle maker Galaxy Space, video platform Bilibili, smart home fitness equipment firm FITURE, and medical tech platform WuXi AppTec in China.