According to the Star Daily on December 9 (Reporter Yu Shiqi), recently, WUXI APPTEC (603259.SH, 02359.HK) announced that its wholly-owned subsidiary signed a subscription agreement with Jeito Capital S.A.S., committing to invest 20 million euros (approximately 0.1525 billion yuan) in Class A shares of the Jeito II S.L.P. fund.

It is reported that Jeito Capital is an investment institution headquartered in France, founded by Dr. Rafaèle Tordjman, focusing on European Biopharmaceutical companies, with treatment areas including immuno-oncology, ophthalmology, rare skeletal diseases, severe respiratory diseases, fibrosis, and related cancers.

WUXI APPTEC's planned investment in "Jeito II S.L.P." is its new phase fund, aiming for a total scale not exceeding 1.2 billion euros, which has already raised approximately 0.387 billion euros. The fund plans to invest in innovative companies with the potential to become leaders in the Global treatment field, focusing on Biopharmaceuticals that have clear clinical needs and commercialization potential, and is expected to invest in 14-17 innovative Medical startups.

Star Daily reporters noted that Jeito Capital is an emerging investment institution in the Biomedical field, gaining significant attention in Europe. Established in 2018, the institution completed fundraising for its first phase fund in September 2021, raising a total of 0.534 billion euros, receiving strategic support from the French Public Investment Bank (BPI), and attracting investors including the European Investment Fund (EIF) and Temasek, while also being the first investment fund to receive funding from Sanofi.

From the outgoing investments, Jeito Capital's investment strategy performs quite well. The official website shows that Jeito Capital has currently invested in a total of 15 projects. Among its invested projects, several companies have been acquired by multinational pharmaceutical companies, such as Negoene Therapeutics (a preclinical Biotechnology company developing personalized cutting-edge T cell therapies for various cancers) was acquired by AstraZeneca at a total price of 0.32 billion dollars at the beginning of 2023; EyeBio (a breakthrough ocular therapy company) was acquired this year by Merck for a total price of up to 3 billion dollars; HI-Bio (a Phase II clinical stage Biopharmaceutical company developing targeted therapies for patients with severe immune-mediated diseases (IMD)) was acquired in July of this year by Biogen for a total price of 1.8 billion dollars.

Dual-currency fund practitioners told Star Daily that in the past, financial investors with a dollar background often invested in overseas VC institutions, but as the overall environment changes, many areas of investment are restricted by currency, and the number of LPs investing in overseas funds is gradually decreasing. However, WUXI APPTEC is different from ordinary LPs; it is a listed company with cross-border business, possessing the ability to access overseas resources while also having an investment logic that is closer to industrial investment, considering not only financial returns but also the synergistic effects with its Business.

WUXI APPTEC stated in the announcement that its investment objective is due to the focus of Jeito Capital on innovative enterprises in the Biomedical field, which represent an important potential customer group for WUXI APPTEC. This investment can enhance WUXI APPTEC's understanding of the latest developments in the European Biomedical sector and provide forward-looking guidance for the company's market expansion in Europe.

It is worth noting that Europe is currently the fastest-growing region for WUXI APPTEC. Its Q3 2024 report shows that during the reporting period, revenue from European clients reached 3.53 billion yuan, a year-on-year increase of 14.8%. Although the total scale is lower than that of the USA and China, the growth rate is the highest. In contrast, revenue from USA clients, excluding specific commercial production projects, grew by 7.6% year-on-year in the first three quarters; revenue from China clients decreased by 3.9% year-on-year.

Previously, WUXI APPTEC planned to invest 10 million euros in the fund under the well-known European Biotechnology investment institution Sofinnova Partners, with an investment target focused on early-stage Biomedical companies in Europe.