US weight-loss biotech Kailera Therapeutics has raised $600mn from investors buoyed by the company’s ability to accelerate drug development by relying on China for cheaper and faster clinical trials.
Massachusetts-based Kailera raised the funds from Bain Capital, the Canada Pension Plan Investment Board, the Qatar Investment Authority and others, one of the sector’s largest deals this year. This follows a $300mn infusion last year.
Kailera’s deal underscores China’s emerging status as the go-to country for drug development. Kailera acquired the global rights for its weight-loss drugs from Jiangsu Hengrui Pharmaceuticals in Lianyungang, China. Drug trials in China can be finished faster and for less money than in the US, making the country increasingly important for biotech investors and global pharmaceutical companies looking for early signs of a drug’s potential.