Firms advise in China’s first royalty-backed deal

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Private equity R-Bridge Healthcare Fund struck a USD40 million royalty-backed financing for Yisheng Biopharma – making it the first deal of its type in China’s biopharmaceutical industry.

Clifford Chance’s team advised Yisheng Biopharma led by two Hong Kong-based partners, Maggie Lo and Fang Liu, supported by registered foreign lawyer Jitr Vilaivongse and legal assistant Agnes Tse.

Sidley Austin acted as the investor’s legal counsel led by partner Olivia Ngan. Counsel Alan Wong, associates Zhou Hao and Kelly Lam along with partner Li Le advised on due diligence. Associate Diana Gong, managing associate Xu Mulai, China adviser Liu Jia and US-based partner Asher Rubin also participated in the transaction.

Maples Group’s Singapore-based team acted as Cayman Islands counsel led by Asia finance partner James Kinsley with assistance from associate Rebecca Lee.

Royalty-backed financing is a trade-off between equity investment and bond investment. It offers higher returns compared to bonds but a lower risk than equity trading.

CBC Group is the parent company of R-Bridge Healthcare Fund and the largest healthcare-focused private equity player in Asia with a management scale of over USD5 billion. It is the only investment fund in China that provides royalty-backed financing.

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