FAST NEWS: Innovent Bio to raise HK$2.4 billion in share placement
The latest: Biotech company Innovent Biologics Inc. (1801.HK) announced on Tuesday it will place 68 million new shares, representing approximately 4.22% of its enlarged share capital, to raise about HK$2.36 billion ($302 million).
Looking up: The placement will give Innovent significant new funding to accelerate its R&D of several priority preclinical and clinical programs across its pipeline, and to build out its global infrastructure and facilities.
Take Note: The placement price of HK$34.92 represents an 8.83% discount to Monday’s closing price, and may pressure the company’s shares.
Digging Deeper: Founded in 2011 and listed on the Hong Kong Stock Exchange in 2018, Innovent develops and sells innovative drugs to treat tumors and other diseases. The company had eight products on the market as of this year’s second quarter, though it has never earned a profit. Last year, its application to sell its key product Sintilimab in the U.S. was rejected by the Food and Drug Administration (FDA). The company also suffered a setback with the termination of its licensing agreement with the U.S. pharmaceutical company Coherus (CHRS.US).
Market Reaction: Innovent’s shares fell on Tuesday and closed down 4.2% at HK$36.70 by the midday break. The stock now trades in the middle of its 52-week range.
Translation by A. Au
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