Canada’s biggest pension fund is buying US$100 million of American depository shares issued by Hutchison China MediTech via a private placement to help finance the Hong Kong-based firm’s cancer research.
The biopharmaceutical company, which is listed on the London and Nasdaq exchanges, primarily works on research and development of treatments for cancer and immunological diseases.
The firm will use the pension fund’s investment for research and clinical development, and to support its capabilities to commercialise treatments, the Canada Pension Plan Investment Board (CPPIB) says in a statement on November 17.
CPPIB manages the assets of the Canada Pension Plan.
“This placement aligns with CPPIB’s focus on providing strategic, long-term capital to industry leading companies where we can participate in the future success of the business and help create greater value through ongoing partnership Agus Tandiono, the pension fund’s managing director and head of fundamental equities Asia, says in the statement.
CPPIB had C$456 billion ($347.7 billion) of total assets as of September 2020.