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Article: Chinese biotech sector is blowing hot as M&A and IPO deals surge amid Covid-19 pandemic

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6 / 10

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The Chinese biotech sector is experiencing a significant surge in mergers, acquisitions, and IPO activity during the Covid-19 pandemic. IPO deals in the healthcare sector have already surpassed the total volume for all of 2019, driven by high investor demand and a reallocation of capital from cyclical industries.

M&A activity is also intense, with data showing a sharp increase in deal value and volume in the first half of the year. Investment interest is exceptionally high, with reports indicating an average of five buyers competing for each available M&A target.

The main topics covered are the booming investment and capital market activity in China's biotech and healthcare sectors, the surge in IPOs and M&A deals, and the intense competition among investors to fund these companies.

Original URL

https://www.scmp.com/business/companies/article/3100889/chinese-biotech-sector-blowing-hot-ma-and-ipo-deals-surge-amid?utm_source=rss_feed

Source Feed

Science & Research - South China Morning Post

Published Date

2020-09-09 11:15

Fetched Date

2026-03-04 14:32

Processed Date

2026-03-04 15:11

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Present

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Raw Extracted Content

Chinese biotech sector is blowing hot as M&A and IPO deals surge amid Covid-19 pandemic
- IPO deals in the broad health care sector have surpassed all of 2019 volume amid a surge in demand from investors
- Many US dollar investment funds have been looking for opportunities, with five buyers chasing one target on average: Datasite
Some 19 deals worth US$3.1 billion were recorded in the sector that focuses on the research and development of novel drugs and medical devices from January to June this year, compared to 16 transactions totalling US$1.74 billion in the preceding six months, according to data compiled by Mergermarket.
“Many US dollar investment funds have been eager to grab hold of opportunities in biotech,” said Toto Ku, head of Greater China at Datasite, which operates virtual data rooms for sellers and buyers to discuss deals in a secure environment. “On average, we saw five companies pursuing one M&A target.”
“Many investors have reallocated money from cyclical industries to health care,” said Zhu. “Even if there will be a slowdown in the rest of the year, capital-market fundraising in the sector will reach a historical high.”