The emerging venture fund, WuXi PharmaTech is planning to expand its business by collaborating with bio-pharma companies of China and the U.S. in a US$250 million project fund. WuXi Healthcare Venture Fund II, the new US$200 million project fund, is expected to be four times as big as the previous US$50 million venture fund is.
WuXi declared its plans to follow up on an initial US$63 million venture fund, sent up in 2011, in its yearly report, in April, 2015. The initial fund were invested in 18 firms and the company expects that this new venture will rise to new heights.
The main purpose to form WuXi Healthcare Ventures Fund II is to put its capital into major equity stakes in China and the U.S., the annual report of the firm stated. WuXi Ventures is likely to consist of 3 operating and 2 non-operating partners. Mr. Ge Li and Mr. Edward Hu, who are the CEO and CFO of the company, respectively, are the 2 non-operating partners of the firm.
WuXi has reported immense growth in recent times. The company is based in the Cayman Islands but operates mostly in Shanghai and is planning to set up new units in the U.S. Mr. Ge Li announced recently that he wants to the company to be privately held again.
With lots of biotech IPOs commencing in the U.S. for the consecutive third year, the venture funds focused on initiating new startups and developing established ones, are finding it rather easy to en-cash the opportunity.