On 18th December 2017, SDIC Fund Management Company Ltd. (“SDIC Fund Management”) announced that the series B round of financing for LP Pharmaceutical (Xiamen) Co., Ltd (“LP Pharmaceutical”) was completed. This round of financing was led by SDIC Fund Management and followed by CMB International and Pien Tze Huang Capital. The capital of this financing will mainly be used for clinical research of new preparation and internationalized production of pharmaceuticals. Cathay Associates Kejie acted as legal counsel to SDIC Fund Management in this transaction. 

SDIC Fund Management is one of the biggest professional private equity management companies in the PRC, who, directly or indirectly, manages a total capital of more than 60 billion RMB, including the capital from financial institutions, social security funds, and state-owned or private capitals.

LP Pharmaceutical is an enterprise, specializing in inventing oral mucosal preparations and sophisticated oral controlled release. For now, one of oral controlled release products invented by LP Pharmaceutical has obtained U.S. Food and Drug Administration’s production approval. Two of the oral controlled release products has got Chinese Food and Drug Administration’s approval for clinical use. Besides, six of its advanced preparations have been selected as “Great Pharmacy Inventions” in National Thirteen-Five Plan. Seven projects have been subject to experiment in China-U.S. Clinical Test. LP Pharmaceutical was founded in 2012 by a group of scientists and business professionals with extensive experience in the US and Chinese pharmaceutical industry. The group is led by experts who belong to National Thousand Talents Program, and established by a focused entrepreneurial team supported by Overseas Chinese Affairs Office of the State Council. Therapeutic areas currently involve central nervous system, digestive system, cardiovascular, cancer and AIDS, and LP Pharmaceutical has accumulated rich experiences in these areas.

The legal services provided by Cathay Associates Kejie for SDIC Fund Management in this transaction included, among others, (i) legal due diligence, (ii) drafting, reviewing and revising the transaction documents, (iii) participating in transaction negotiations and (iv) assisting the closing of the transaction.

Cathay Associates Kejie team is led by Partner Zhang Fang and includes Shen Wenlei and Qiao Ni.