FAST NEWS: RemeGen scales back A-share fundraising plan
The Latest: Novel drug maker RemeGen Co. Ltd. (9995.HK; 688331.SH) announced Wednesday that it has reduced its fundraising target through a planned issue of new A-shares from a previous 2.55 billion yuan ($350 million) to as much as 1.95 billion yuan.
Looking Up: Net proceeds from the proposed issuance will be used for new drug development.
Take Note: The reduction of nearly 600 million yuan in RemeGen’s capital-raising target may reflect weak demand for the shares.
Digging Deeper: Founded in 2008, RemeGen develops and sells novel drugs in the areas of autoimmunity, oncology, ophthalmology and other major diseases. The company currently has two approved products on the market, namely, the autoimmune drug telitacicept and cancer drug disitamab vedotin. But the company still has limited drug sales, which, when coupled with high selling and R&D expenses, have resulted in accumulated losses of nearly 2.5 yuan billion in the past two years.
Market Reaction: RemeGen’s shares fell on Thursday, closing down 2.1% at HK$13.9 by the midday break. The stock now trades at the lower end of its 52-week range.
Translation by A. Au
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