Zhitong Financial News, Dawnrays Pharmaceutical (02348) announced that on February 8, 2024, the company's wholly-owned subsidiary Dawnrays Biotech entered into the agreement with Zhongshan Akeso (as the buyer), Akeso Bio (as the guarantor of Zhongshan Akeso's payment liability) and Kangrong Oriental (as the target company), according to which Dawnrays Biotech agreed to ** and Zhongshan Akeso agreed to purchase 35% of the equity of Dawnrays Biotech in Kangrong Oriental at a purchase price of RMB 26.7 billion yuan. The agreement also requires Kangrong Oriental to repay the loans and the accrued interest as at 8 February 2024. Therefore, Dawnrays Biotech is entitled to receive a total of RMB 3 under the Agreement900 million yuan.
Kangrong Dongfang is mainly engaged in the development of (a) inucimab injection (anti-PCSK9 monoclonal antibody (AK102)) for two indications (i.e., (i) primary hypercholesterolemia and mixed hyperlipidemia, and (ii) heterozygous familial hypercholesterolemia), which has completed phase III clinical trials and the new drug marketing authorization application has been accepted by the National Medical Products Administration in June 2023; and (b) Plimacimab (VEGFR-2 monoclonal antibody (AK109)), which is intended for the use of ** advanced solid tumors, which is in Phase II clinical trials as at the date of this announcement.
*The matter will enable the Group to exit its minority investment in Kangrong Oriental and redeploy its resources to the Group's R&D projects and manufacturing and sales activities. Taking into account the above factors, the Group may recover more than the full value of its investment in Kangrong Oriental and the loans provided to it and obtain net income through the ** Event, the successful development of the new drug and the possible return on it are inherently uncertain, and the Group, as a minority investor, has little control over this, the Directors consider that the ** Matter is in the interests of the Company and the shareholders as a whole, and the Agreement is entered into on normal commercial terms and its terms are fair and reasonable.