Dongrui Pharmaceuticals (02348) issued an announcement. On February 8, 2024, Dongrui Biotech, a wholly-owned subsidiary of the company, and...
According to Zhitong Finance App, Dongrui Pharmaceuticals (02348) announced that on February 8, 2024, Dongrui Biotech, a wholly-owned subsidiary of the company, signed the agreement with Zhongshan Yasfang (as the buyer), Kangfang Biotech (as the guarantor of Zhongshan Yasfang's payment liability) and Kangrong Oriental (as the target company). Based on this, Dongrui Biotech agreed to sell and Zhongshan Yasfang agreed to purchase 35% of Dongrui Biotech's shares in Kangrong Oriental at a purchase price of RMB 267 million. The agreement also requires Kangrong Oriental to repay such loans and accrued interest as of February 8, 2024. As a result, Dongrui Biotech is entitled to collect a total of RMB 390 million under the agreement.
Kangrong Oriental is mainly engaged in the development of (a) inucimab injections (anti-PCSK9 monoclonal antibody (AK102)) for the treatment of two types of indications (namely (i) primary hypercholesterolemia and mixed hyperlipidemia, and (ii) heterozygous familial hypercholesterolemia). The drug has completed phase III clinical trials and a new drug marketing license application has been accepted by the State Drug Administration in June 2023; and (b) proximab (VEGFR-2 monoclonal antibody (AK109)), intended to treat advanced tumors Tumors, as of the date of this announcement, this drug Phase II clinical trials are ongoing.
The sale will enable the Group to withdraw from its minority investment in Kangrong Oriental and reallocate its resources to the Group's R&D projects and manufacturing and sales activities. Considering the above factors, the Group can recover more than the full value of its investment in Kangrong Oriental and receive net income through the sale. The successful development of the new drug and the return it may generate is inherently uncertain, and the Group, as a minority investor, has little control over this. The directors believe that the sale is in line with the overall interests of the company and shareholders, and that the agreement is based on general commercial terms, and that the terms are fair and reasonable.