On June 1, 2022, Dongyao Pharmaceutical (stock code: 1875.HK) announced that the company entered into a share subscription agreement with Weiwu Suzhou Fund and Shengde Pharmaceutical Factory .
According to the agreement, Weiwu Suzhou Fund and Shengde Pharmaceutical Factory will subscribe to 116,250,000 shares and 33,750,000 shares of Dongyao Pharmaceutical respectively, with a subscription price of HK$3.15 per share, totaling 150,000,000 shares, accounting for approximately 24.38% of the company's issued share capital as of the date of this announcement. The subscription price is 4.79% premium to the average closing price in the five trading days before the agreement date. After the completion of this subscription agreement, the shareholding ratio of Weiwu Suzhou Fund and Shengde Pharmaceutical Factory will reach about 28.68% and 28.66% respectively.
In recent years, Dongyao Pharmaceutical has accelerated its strategic adjustments, strengthening the company's competitive advantages in the field of antibody-coupled drugs (ADCs), and accelerating the construction of the industry-leading ADC one-stop industrialization platform; fully expanding its one-stop innovative drug CDMO business, and has achieved breakthrough results, with a significant increase in business scale, becoming a new engine for the company's development.
The total amount of funds raised by this share subscription reached HK$470 million (approximately RMB 400 million). This amount will improve the company's working capital, expand the company's capital base, optimize the company's capital structure, and provide support for the company's long-term development. The funds are intended to be focused on: further expanding the CDMO business, strengthening project cooperation with domestic and foreign pharmaceutical companies; promoting the continuous construction of global R&D centers, improving ADC commercial production capacity, thereby improving cost-effectiveness; completing the Phase III clinical trial of TAA013, as well as preclinical and clinical trials of under-developed drugs such as TAE020 and TAC020; carrying out the commercial production and marketing of Park Xinting ®, Tizhian ® and Meshiya ®.
Mr. Fu Shan, Chairman of Dongyao Pharmaceutical, Managing Partner of Weiwu Capital, Global Co-CEO and CEO of Asia, said: "This transaction is another major milestone in Dongyao Pharmaceutical's development path. Its clear strategic planning and good performance have been highly recognized by shareholders. In recent years, Dongyao Pharmaceutical's management team has continuously focused on core competitive advantages, optimized resource allocation, firmly adhered to the path of differentiated development, and created a domestic leading and internationally competitive ADC full-industry chain platform. , actively expand CDMO business, build a commercial production platform with great competitive advantages and industrial value, showing strong and sustainable development potential, and the company's shareholders and board of directors are full of confidence in the company's future development! "
, Dongyao Pharmaceutical CEO Dr. Liu Jun said: "I am very honored to be able to obtain strong support and recognition from the two major shareholders Weiwu Capital and Shengde Pharmaceutical Factory at the critical period when the company improves commercial development and makes strategic adjustments with ADC as the core! Dongyao Pharmaceutical will give ADC CDMO's strategic transformation and upgrading has achieved remarkable results. Through this capital increase, the company's capital strength will be further enriched and financial support for the company's sustainable development. In the future, Dongyao Pharmaceutical will continue to optimize its capital structure and establish a diversified and sustainable development model; continuously improve its comprehensive strength in process development, accelerate the upgrading of ADC's commercial production capacity, and create a new engine for the growth of CDMO business, thereby strengthening the company's own hematopoietic ability, in order to create rich returns for shareholders and investors." ”
About Weiwu Capital
Vivo Capital (Vivo Capital) was established in 1996. It is a world-leading investment institution focusing on the medical and health field. It has a diversified and multi-fund investment platform in venture capital, growth private equity, control acquisition and open market investment. As of the end of 2021, the total asset size managed by the company reached US$6.4 billion, and more than 290 listed and unlisted companies have been invested in globally. Via Capital has a team of more than 70 professionals, headquartered in Palo Alto, California, USA, with offices in Beijing, Shanghai, Hong Kong and Taiwan. All fund strategies under Weiwu Capital are widely invested in the medical and health field, including biotechnology, pharmaceuticals, medical devices and medical services, focusing on the world's largest medical and health market.
About Shengde Pharmaceutical Factory
Shengde Pharmaceutical Factory was registered and established in Taiwan in 1959. Its shares were listed in the Securities Counter Sales Center in 2003 (stock code: 4123).Shengde Pharmaceutical Factory is the largest oral liquid manufacturer in Taiwan, with a market share of about 70%. The products are mainly domestic liquids, including syrup, suspension, emulsion and other dosage forms. Through investment, it engages in new drug research and development, raw materials, minimally invasive medical equipment and other businesses. In recent years, Shengde Pharmaceutical Factory has become a well-known "Biotech Industrial Bank" in Taiwan for its incubation or investment in multiple biotechnology and related companies (including the company) that have been listed or will be listed on the Stock Exchange or Securities Counter Sales Center and its history of promoting its growth and development. As of December 31, 2021, the total assets of Shengde Pharmaceutical Factory were NT$30.4 billion (equivalent to approximately US$1.1 billion).
Related Dongyao Pharmaceutical Co., Ltd. (stock code: 1875. HK)
Dongyao Pharmaceutical focuses on the development and commercialization of innovative anti-tumor drugs and therapies, and is committed to building a leading brand of tumor treatment trusted by patients and their families and medical professionals.
has built an internationally competitive commercial production base for innovative drugs, including monoclonal antigen solution and preparation workshop, as well as an ADC commercial production workshop integrating ADC stock solution and lyophilized preparation. It is estimated that by mid-2022, the production capacity of biopharmaceutical commercial production bases will reach about 20,000 liters, which can achieve high-quality commercial production of innovative drugs.
With its advantages in R&D and production, Dongyao Pharmaceutical has carried out diversified strategic cooperation with domestic and foreign pharmaceutical companies to provide one-stop CDMO solutions for drug development and production, adhering to the service concept of "using quality to help innovation and grow together", accelerating the development and production of chemical drugs, biological drugs, especially ADC drugs, empowering partners and benefiting the majority of patients.
Forward-looking statements
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