Rare disease drugmaker CANbridge Pharmaceuticals Inc. (1228.HK) announced on Monday that it will sell 84.03 million new shares to WuXi Biologics HealthCare Venture, a subsidiary of WuXi Biologics (2269.HK), for HK$2.38 per share. The price represents a discount of approximately 14.7% to last Friday’s closing price of HK$2.79. The sale is expected to raise gross proceeds of about HK$200 million ($26 million).
The new shares represent about 14.1% of CANbridge’s enlarged share capital, and will boost WuXi Biologics’ stake in the company from 2.51% to 16.27%. CANbridge will use the proceeds for commercialization and regulatory maintenance of its marketed products, R&D for its drug pipeline, and settlement of trade payables. About 60% of the funds will be allocated to improving its working capital structure.
Last July, CANbridge’s core rare disease drug Goreining received marketing approval and passed an initial review for inclusion on China’s National Reimbursement Drug List. In August, Qingdao Baheal Medical Inc. (301015.SZ) made a strategic investment of HK$100 million in the company. CANbridge also reported a move into the black with a net profit of 59.24 million yuan in the first half of the year. The string of positive developments have lifted CANbridge’s shares nearly 19-fold over the past 52 weeks.
CANbridge shares opened higher on Monday and closed at HK$8.24 by the midday, up 3.02%.
By Lee Shih Ta
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