Zhitong Financial News, Akeso Biotechnology (09926) announced that on February 8, 2024 (after trading hours), the company, the indirect wholly-owned subsidiary of the buyer Zhongshan Akeso Biopharmaceutical, the seller, Dawnrays Biotechnology Investment and Development (Asia)**, Dawnrays Pharmaceutical and Kangrong Oriental entered into an equity transfer agreement, according to which the seller agreed, and the buyer agreed to purchase 35% of the equity of Kangrong Oriental at the consideration. Upon completion of the acquisition, Kangrong Oriental will become an indirect wholly-owned subsidiary of the Company. The consideration is RMB 26.7 billion yuan. The Purchaser shall pay the consideration to the Vendor within 120 days from the 40th business day from the date of the Share Transfer Agreement. The consideration is expected to be met from intra-group resources. The Company will provide security for the Purchaser's payment obligations under the Share Transfer Agreement. In connection with the acquisition, Kangrong Oriental will repay the outstanding shareholder loan to the seller (the unsecured shareholder loan owed by Kangrong Oriental to the seller is in the outstanding amount of RMB1.).RMB2.3 billion, equivalent to (i) the total outstanding principal amount of RMB1RMB1.6 billion and (ii) accrued interest on loans of RMB711$270,000), the repayment obligation will be guaranteed by the buyer. Dawnrays will provide a guarantee for the seller's performance of its obligations under the share transfer agreement.
Kangrong Dongfang is an innovative biopharmaceutical company integrating the development, production and sales of antibody drugs, which was established in December 2016 in the form of technology and product injection from the buyer and capital injection from the seller. Kangrong Oriental keeps up with the frontier of scientific development, focusing on the innovative development of innovative drugs for major diseases such as cardiovascular and tumor diseases. The company will fully integrate and give full play to its resource advantages, and expects to continue to develop high-quality innovative biological drugs through continuous R&D, production and commercialization of innovative drugs.
Kangrong Oriental is a joint venture established by the Group and the Seller in 2017, mainly engaged in the research and development of innovative drug products, including a class of new drugs for metabolic diseases (AK102, PCSK9 monoclonal antibody) for metabolic diseases that has submitted a new drug application in June 2023, and a class of new drug prolacimab (AK109, VEGFR-2 monoclonal antibody) for advanced solid tumors** that is in phase II clinical trials. The Board believes that the Group's full integration into the Company's rich oncology and non-oncology product pipelines will be conducive to the overall efficient operation of the subsequent clinical development and commercial plans of the two products. The Group will make overall planning and arrangements in terms of future commercial development and capacity utilization, and give full play to its advantages in cost and synergy in R&D, production and commercialization.