(Yicai) Dec. 20 -- WuXi AppTec said the Chinese biotech company will invest EUR20 million (USD20.7 million) in private equity funds managed by a French investment firm, as it seeks to broaden its European interests amid US regulatory woes.

WuXi AppTec has agreed to invest EUR10 million in each of Sofinnova Biovelocita II and Sofinnova Crossover II, two funds run by Sofinnova Partners, the Shanghai-based firm said yesterday.

Sofinnova Biovelocita II aims to raise up to EUR200 million and will focus on project incubations and seed-stage investments in the European biomedical sector, WuXi AppTec said. Sofinnova Crossover II will be no larger than EUR1.1 billion and will invest in mature start-ups, including biopharma and medical device firms.

Paris-based Sofinnova has more than 50 years of investment experience in the European life sciences sector, WuXi AppTec said. The investment gives the Chinese firm an opportunity to access early-stage innovation in Europe's biopharma industry and gain forward-looking insights into the regional dynamics, it noted.

WuXi AppTec, which mainly provides new drug research and development services for global drugmakers, faces a potential threat from the US Biosecurity Act, which is still in the legislative process. The act aims to restrict foreign entities from obtaining contracts with US government agencies and lists WuXi AppTec as one of the biotech firms of concern.

In the first three quarters of this year, WuXi AppTec’s net profit fell 19 percent from a year earlier to CNY6.5 billion (USD890.8 million) on a 6 percent decline in revenue to CNY27.7 billion (USD3.8 billion). CNY17.6 billion of income came from US clients.

Editor: Tom Litting