CSPC Pharmaceutical Group Acquires 39.56% Stake in Wuhan YZY Biopharma to Expand Presence in Biologics Market

On January 9, CSPC Pharmaceutical Group (01093) announced that its wholly-owned subsidiary, CSPC NBP, had entered into an equity transfer agreement with the sellers and other existing shareholders of Wuhan YZY Biopharma. Pursuant to the agreement, CSPC NBP agreed to acquire a total of 37% equity interest in Wuhan YZY Biopharma from the sellers for a total consideration of RMB 203.6 million.

The Seller further agrees to procure that Wuhan YZY achieves the milestone events by December 31, 2020, and CSPC NBP agrees to pay the Seller additional milestone payments, amounting to a maximum aggregate of RMB 55.426 million, provided that the milestone events are achieved within their respective agreed timelines.

The announcement stated that on January 9, 2018, CSPC NBP also entered into a capital increase agreement with the investors, the sellers, and other existing shareholders of Wuhan YZY. According to the agreement, all parties agreed that upon completion of the acquisition, CSPC NBP would inject RMB 76.242 million into Wuhan YZY, while the investors would collectively inject RMB 80.958 million into Wuhan YZY.

In addition to the initial capital contribution, CSPC NBP further agreed to inject additional milestone payments totaling up to RMB 20.758 million into the capital reserve of Wuhan YZY, and the investors further agreed to inject additional milestone payments totaling up to RMB 22.042 million into the capital reserve of Wuhan YZY, provided that the milestone events are achieved within their respective agreed timelines before December 31, 2020.

Furthermore, upon completion of the initial capital injection, CSPC NBP will hold approximately 39.56% equity interest in Wuhan YZY Biopharma, while the remaining approximately 60.44% equity interest will be held by investors, sellers, and other existing shareholders of Wuhan YZY Biopharma.

It is reported that Wuhan YZY Biopharma is primarily engaged in the development of innovative biopharmaceuticals, with a focus on developing bispecific antibodies for cancer treatment.

The group stated that its investment in Wuhan YZY Biopharma presents a significant opportunity to expand its market position in the biopharmaceutical sector.