Gelonghui, January 1, 丨 Xiansheng Pharmaceutical (02096.HK) announced that on January 1, 2024, the buyer (an indirect wholly-owned subsidiary of the company) signed an equity transfer agreement with the seller. According to this, the buyer agreed to buy and the seller agreed to sell all of the shares in the target company Nanjing Baijiahui Innovative Medical Technology. The cash cost was RMB 42.3065 million.
After the acquisition is completed, the target company will become an indirect wholly-owned subsidiary of the company, and the target company's financial results will be incorporated into the group's financial statements.
According to reports, the target company is a limited liability company established in China on July 10, 2017. As of the date of the announcement, the target company was directly wholly owned by the seller. As of the announcement date, the target company had no actual business operations. The main assets of the target company include land use rights for the target land and the completed production base.
According to the announcement, the Group currently has an extensive pipeline of antibody drugs, and it was assessed that the Group needs more production facilities to increase production and storage capacity, so that the product scale of the antibody drug pipeline is in line with future market demand. In order to match the speed of future new product launches and production, the Group needs to lay out and plan new production facilities and storage sites in advance. The acquisition will entitle the group to enjoy the target company's land use rights and use the production site that has already been built. Furthermore, the target company's land is adjacent to the Group's existing production facility site, which is convenient for the Group's centralized management. Therefore, the company believes that the acquisition of target companies is the most cost-effective way to improve the Group's antibody drug production and storage capacity.