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Wuxi Biologics to continue global capacity growth
Posted on Tuesday, 30 June 2020 06:33
Wuxi Biologics Cayman is raising up to HKD 6.17 billion (USD 795.42 million) to fund its continuous global capacity expansion, including the construction of commercial manufacturing facilities in US for projects involving COVID-19 treatments.
The open-access, biologics drug development platform has hired Morgan Stanley for the sale of 45.00 million shares at HKD 137.00 apiece to no less than six independent institutional investors.
Its placing price represents a discount of 7.9 per cent to the finish of HKD 148.70 yesterday, the last unaffected close prior to the announcement, and of 5.9 per cent to the five-day average.
Wuxi Biologics intends to use money raised to establish facilities in the US for projects related not only to COVID-19, but also for contract development and manufacturing organisation activities.
Proceeds will bankroll the acquisition of manufacturing sites outside China and microbial facilities in the country, as well as general corporate purposes.
As disclosed in the company’s annual report for the year ended 31st December 2019, the company has experienced a brief slow-down of its business and slight revenue delays as a result of the COVID-19 pandemic.
However, it has implemented a contingency plan to minimise the negative impact on operations, while at the same time taking advantage of new opportunities due to the rising needs of discovery, development and manufacturing of biopharmaceuticals globally.
Wuxi Biologics last completed an offering at the end of October, when it raised HKD 3.93 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows 750 capital increases by companies operating in the pharmaceuticals, biotechnology and life sciences sectors have been announced in 2020 to date.
Wuxi Biologics’ cash call will be the fifth-largest of the year, after WuXi AppTec, Moderna, argenx, and Sino Biopharmaceutical.
© Zephus Ltd