March 28, 2017
Taipei, Taiwan-headquartered TaiGen Biotechnology Co., Ltd. announced today that its wholly owned Chinese subsidiary, TaiGen Biopharmaceuticals Co. (Beijing), Ltd. has executed an equity purchase agreement to sell its 9% equity stake in Dongguan HEC TaiGen Biopharmaceuticals Co., Ltd., a joint venture company between TGBJ and HEC, to Chinese pharma company YiChang HEC ChangJiang Pharmaceutical Co., Ltd.
Under the terms of the agreement, TaiGen Biopharmaceuticals will receive a payment of US$20 million for the 9% equity payable on or before March 31st, 2017. Following the purchase, TaiGen Biopharmaceuticals and Dongguan HEC will hold 40% and 60% equity of Dongguan HEC respectively. TaiGen Biopharmaceuticals is eligible to receive additional payments of up to US$20 million upon achieving certain future clinical and regulatory milestones. Furthermore, TaiGen Biopharmaceuticals will have an option to re-purchase up to 9% of the equity in Dongguan HEC if certain milestones are met.
Dongguan HEC was established in January 10, 2017 in Dongguang, China, under the October 30, 2016 agreement between TaiGen and HEC. The company’s furaprevir (TG-2349), a NS3 protease inhibitor, and yimitasvir (DAG-181), an NS5a inhibitor, are novel direct acting antivirals for the all-oral treatment of chronic hepatitis C virus (HCV) infection. Donguang’s focus is in the development, manufacturing, and commercialization of these two assets in mainland China, Taiwan, Hong Kong, and Macau. Both furaprevir and yimitasvir are 1.1 New Drugs under CFDA classification.
Read the press release here.