BioDuro-Sundia Files IPO Prospectus Following Merger of BioDuro and Sundia to Form a Leading Global CRDMO

VCBeat (WeChat Official Account: vcbeat) has learned that on September 25, 2020, Beijing time, BioDuro, a global life sciences R&D company invested in by Advent International, and Sundia, a leading contract research and manufacturing organization, announced the establishment of an industry-leading CRDMO (Contract Research, Development, and Manufacturing Organization) company. The new entity will operate its primary businesses in China and the United States. Operating under the name BioDuro-Sundia, the joint venture is committed to providing fully integrated drug discovery, development, and manufacturing services for active pharmaceutical ingredients (APIs) and finished drugs. Sundia was led by Advent International in its investment round, with Bridgewest Capital as a co-investor. Specific financial terms were not disclosed.

China Renaissance served as the exclusive financial advisor to the seller, Sundia MediTech Company Ltd, in this transaction.

BioDuro-Sundia boasts a team of over 2,000 employees across its top 10 global branches. Leveraging its scaled and integrated operational capabilities in China and the United States, the company provides biopharmaceutical clients with end-to-end, one-stop solutions ranging from early-stage drug discovery to late-stage production. Backed by robust financial strength and significant capital investment, BioDuro-Sundia is continuously expanding its business scale to solidify its strategic market position. The company plans to establish two new business centers in China—a research and development base in Wuxi and a manufacturing base in Bengbu—which will create more than 1,000 new jobs over the next two years.

The new company’s team, facilities, and investments will continue to deliver high-quality services to clients, accelerating project workflows and empowering them to achieve new business heights with greater confidence.

The Board of Directors of BioDuro-Sundia comprises the existing board members of BioDuro, as well as Cathy Yen, Chair of the Sundia Board. Ms. Yen will serve as an Independent Director, working alongside industry veterans such as David Preston, Kewen Jin, and Masood Tayebi.

Dr. Li Jianchang, CEO of Sundia, will join the executive team of BioDuro-Sundia as President of CMC (Chemistry, Manufacturing, and Controls) Solutions for China, where he will be responsible for driving growth in this market, including establishing late-stage GMP capabilities and expanding non-GMP API services for the company. Mr. Li will report directly to Cyrus K. Mirsaidi, CEO of BioDuro-Sundia.

“BioDuro and Sundia share the same core values, including respect for others, teamwork, and resilience,” said Cyrus K. Mirsaidi, CEO of BioDuro-Sundia. “We both prioritize customers and their patients, jointly committing to helping biopharmaceutical partners in drug development and improving patients’ lives. Therefore, the BioDuro-Sundia partnership achieves strong alignment. Not only will our employees benefit from expanded global operations and new career opportunities, but for our partner clients with whom we work daily, this integration will also accelerate the progress of their critical projects, providing greater support to hospitals and patients.”

David Preston, Chairman of the Board of BioDuro-Sundia, stated, “China is the fastest-growing market in the global biopharmaceutical industry. Sundia has already established extensive drug discovery and CMC services in China, and we are delighted to partner with such a mature company. The merged entity will secure a more advantageous scale and leadership position for us in this rapidly developing Chinese market, strengthening our capabilities, attracting top talent, and achieving rapid growth. This is undoubtedly a powerful alliance between two industry leaders.”

Cathy Yen, Director of BioDuro-Sundia, stated, “We are highly enthusiastic about this integration with BioDuro, which will combine our expertise in drug discovery, research and development (R&D), and chemistry, manufacturing, and controls (CMC) to deliver highly competitive and innovative end-to-end CRDMO (Contract Research, Development, and Manufacturing Organization) solutions to our clients. As a biopharmaceutical service provider, this integrated R&D and manufacturing model will help enhance efficiency across the entire biopharmaceutical industry, enabling us to accelerate progress on countless projects for hundreds of companies and deliver products to patients more rapidly.”

Andrew Li, Managing Director and Head of Greater China at Advent International, stated, “BioDuro and Sundia MediTech have extensive experience in delivering high-quality CRDMO services to leading global pharmaceutical and biotechnology clients. We believe this new partnership will create greater value for all stakeholders.”

“This transaction underscores Advent International’s robust capabilities in the healthcare sector and Asian investments, as well as our continued support for China’s pharmaceutical and healthcare businesses. We look forward to the further development of BioDuro-Sundia and will continue to work closely with its experienced management team to expand its footprint in China and globally.”

Advent International has extensive experience in investing in the healthcare and life sciences sector. Over the past three decades, Advent has invested $8.6 billion in 47 companies across 16 countries worldwide. In addition to its investment in BioDuro, its recent investments in the pharmaceutical and CRO sectors include Bharat Serums and Vaccines, ICE Group, Zentiva, Somar, and Syneos Health, Inc. (NASDAQ: SYNH).

Wu You, Managing Director and Head of the Healthcare M&A Group at China Renaissance Capital, stated, “China’s pharmaceutical market has entered a phase of M&A-driven consolidation. Leading enterprises are achieving rapid growth through mergers and acquisitions, which not only generates economies of scale to reduce costs but also delivers higher returns to shareholders through accelerated expansion. China Renaissance Capital remains long-term bullish on China’s healthcare and pharmaceutical market, facilitating industry consolidation to help investors realize profits by serving leading companies and investors.”

Sundia MediTech, established in 2004, is a company providing comprehensive preclinical drug research and development (R&D) and manufacturing services. The company has built an international-standard, one-stop technical service platform integrating compound synthesis, medicinal chemistry, DMPK, pharmacodynamic evaluation, chemical process development, formulation development, analytical method research, and the production of small-molecule active pharmaceutical ingredients (APIs) and starting materials. Currently, Sundia has established long-term partnerships with most of the top 10 global biopharmaceutical companies. Prior to the merger, Sundia had provided drug R&D services at various stages to more than 250 clients worldwide. For Investigational New Drug (IND) applications, Sundia boasts an experienced technical team well-versed in Chinese and U.S. regulations and guidelines, having successfully assisted clients in completing multiple IND filings. Headquartered in Shanghai, Sundia currently operates four R&D centers in Shanghai, one in Shijiazhuang, and one in Taiwan.

BioDuro is one of the portfolio companies of Advent International. As a leading life sciences R&D company, BioDuro provides biopharmaceutical clients with integrated drug development services spanning from target identification to IND filing and GMP manufacturing of clinical trial materials. With profound and extensive therapeutic expertise in the discovery, development, and scale-up of both small and large molecules, BioDuro possesses proprietary technology platforms, such as its bioavailability enhancement platform for poorly soluble compounds. BioDuro operates four global sites: its headquarters is located in San Diego, California, with additional facilities in Beijing, Shanghai, and Jiangsu Province. Its integrated teams in China and the United States offer partners true global, seamless operational advantages, significantly accelerating drug discovery and reducing R&D risks, thereby creating greater value.

Advent International, founded in 1984, is one of the largest and most experienced private equity investment firms globally. Since its inception, Advent has completed more than 350 private equity transactions across 41 countries. As of June 30, 2020, the firm’s assets under management totaled $58.4 billion. Advent maintains 15 offices in 12 countries across four continents and employs a global team of over 200 investment professionals located throughout North America, Europe, Latin America, and Asia. The firm focuses on five core investment sectors: Business and Financial Services; Healthcare; Industrials; Retail, Consumer Products, and Leisure; and Technology, Media, and Telecommunications. For more than three decades, Advent has been committed to advancing international investment markets by working closely with the management teams of its portfolio companies to drive sustainable growth in revenue and profits.

Bridgewest Capital, established in 1999, is a private investment firm dedicated to creating long-term value for its portfolio companies by leveraging exceptional industry expertise, operational experience, and substantial financial resources. The firm has built its global investment framework across four key sectors: private equity, real estate, capital markets, and financial services. Its private equity investments primarily focus on biotechnology, wireless communications, IoT infrastructure, and semiconductors. Headquartered in San Diego, California, Bridgewest maintains a diversified investment presence across the United States, Europe, Asia, and Oceania.