Viva Biotech Announced Strategic Investors with an Investment of Approximately US$ 210 Million

2023-06-16

并购

HONG KONG, June 16, 2023 /PRNewswire/ -- On June 11, 2023, Viva Biotech Holdings Group (1873.HK) announced that Viva Shanghai, the primary entity for Viva Biotech's CRO business, successfully raised nearly US$ 150 million through the transfer of approximately 24% of its equity interest to Temasek, HLC, and True Light. Furthermore, the listed entity of Viva Biotech secured a proceed of approximately US$ 60 million through such financing. The transaction also unveiled the Company's future plan to spin off its CRO business for separate listing in the A-shares market.

Based on its SBDD strategy, Viva Biotech has achieved remarkable growth in its CRO drug discovery and development business through its continuous effort throughout the years. In particular, Viva Biotech has established its global leading position in the biopharmaceutical industry with its development in the field of protein structural analysis. Since its listing, Viva Biotech has successfully completed the mergers and acquisitions of SYNthesis and Langhua Pharmaceutical, and achieved synergy effects in the construction of an integrated platform for the research, development and manufacturing of CRO and CDMO products. Through the concerted effort of internal expansion and external partnerships, Viva Biotech's revenue hit a record-high, from approximately RMB 323 million in 2019 to approximately RMB 2.38 billion in 2022, representing a compound annual growth rate of approximately 94.57% during this period. And its gross profit increased from approximately RMB 156 million to approximately RMB 816 million in 2022, representing a compound annual growth rate of approximately 73.61%. This financing will contribute to Viva Biotech in its introduction of strategic investors, as well as in its future A-shares listing plan. This proved Viva Biotech's effective integration of its intrinsic advantages and capital empowerment, demonstrating its forward-thinking approach and ambitious goals.

Dr. Cheney Mao, Chairman and CEO of Viva Biotech, stated, "It is our great honor to introduce renowned strategic investors who will furnish and enhance our key strategic decisions and long-term investment and financing plans. Despite the recession in investment and financing, we are able to secure investment from established institutions, by virtue of our pioneering spirit and continuous innovation in the past. This demonstrates the market's recognition of our business foundation and confidence in our development prospect. Furthermore, the commitment to our goal of A-shares listing and the valuation premium from A-shares compared to HK stock market will facilitate the financing needs for our future development. in addition, our plan to increase executive share ownership and provide Employee Stock Ownership Plan (ESOP) to the core team members will revitalize Viva and open up new opportunities for our long-term growth."

Furthermore, HLC stated, "Based on a thorough analysis of the development features of the biopharmaceutical industry, the operation rules of the capital market, and the unique attributes of Viva Biotech, upon our in-depth and sincere discussion and research with Viva Biotech's management team, the investment in Viva Biotech is a transaction for the enhancement of overall development and realization of value of the Company, as well as an improvement plan on corporate governance system. We hope that through our joint efforts, Viva Biotech will further unleash its value through its world-leading structure-based new drug discovery service platform and other business segments, meet global customers' needs by providing integrated 'CRO+CDMO' services and realize stable and long-term growth."

Introduction of Relevant Investors:

About TEMASEK

Temasek is an investment company with a net portfolio value of S$403 billion (RMB1.89t) as at 31 March 2022. Headquartered in Singapore, it has 12 offices in 8 countries around the world. Temasek's Purpose "So Every Generation Prospers" guides it to make a difference for today's and future generations. The Temasek Charter defines its three roles as an Investor, Institution and Steward, and shapes its ethos to do well, do right and do good. Sustainability is at the core of all that Temasek does. It is committed to catalysing solutions to global challenges and activating capital – financial, human, social and natural – to bring about a better and more inclusive world for all.

About HighLight Capital (HLC)

HighLight Capital (HLC) is dedicated to creating long-term values through the promotion of technology innovations. Empowered by deep knowledge in chemical, biological and material sciences, and leveraging proprietary industry research and comprehensive enablement services, HLC strives to create sustainable value over the long term by investing in companies that boost manufacturing efficiency.

HLC has invested in over 100 leading companies, including Mindray, United Imaging, Yuwell, Wuxi Biologics, Tigermed, Baheal Pharma, Pharmaron, BrightGene, Hongene, BABO, XINGYUN Group, CHOWSING Nourse, Nayuki. HLC manages USD and RMB dual currency funds, with operations in Hong Kong, Shanghai, and Shenzhen.

SOURCE Viva Biotech Holdings