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Innovent to raise HKD 2.4bn
Posted on Thursday, 13 February 2020 10:16
Innovent Biologics is raising HKD 2.36 billion (USD 303.77 million) to fund manufacturing capacity expansion now its sintilimab injection, Tyvyt, has been included in the new catalogue of national reimbursement drug list (NRDL).

The Cayman Islands-incorporated biopharmaceutical developer has hired Morgan Stanley as sole placing agent for the sale of 78.00 million shares at HKD 29.88 each, which represents a 5.8 per cent stake of the post-issue capital.

Its offering is a discount of 5.0 per cent to yesterday’s close of HKD 31.80 and of 4.8 pe cent to the five-day average finish of HKD 31.71

At the beginning of October 2019, Innovent announced plans to use proceeds of HKD 2.35 billion from a previous placement of existing shares and the sale of new stocks to advance key pipeline products.

This included late stage clinical and registration trials for three in-licensed drugs from Incyte and two first-in-class bispecific candidates being developed in collaboration with Eli Lilly that are currently in Phase I clinical studies.

Since then, Tyvyt - for the treatment of patients with classical Hodgkin's lymphoma - was included in the NRDL in November 2019 and Innovent entered into a new collaboration with US biosilimar group Coherus BioSciences.

The company noted in its 2019 interim report the sintilimab injection generated CNY 331.60 million (USD 47.57 million) in revenue less than four months since its commercial launch date of 9th March 2019 through 30th June 2019

Innovent said proceeds from the latest share sale would fund the launch of other new drugs in the next few years, as well as preparing future capacity expansion of the possible rapid growth due to the inclusion of its Tyvyt to the NRDL.

Zephyr, the M&A database published by Bureau van Dijk, shows 111 capital increases by companies operating in the pharmaceutical, biotechnology and life sciences sectors have been announced in 2020 to date.

The largest by value features Sino Biopharmaceutical issuing convertible bonds worth USD 831.98 million.

© Zephus Ltd