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Group Real-Time Dynamics And Cutting-Edge Information In The Field Of One Health
Jiankang Yuan plans to introduce Hillhouse Capital to raise no more than 2.173 billion yuan.
Published Time：
2020-07-13
According to a report by the Beijing News (reporter Wang Kala), on July 13, HealthGen issued an announcement stating its intention to issue no more than 169,350,000 shares (inclusive) in a non-public offering to introduce Hillhouse Capital as a strategic investor, with the total amount of funds raised expected to not exceed 2.173 billion yuan. After the issuance, Hillhouse Capital's shareholding will account for 8% of HealthGen's total shares. This morning, HealthGen opened with a daily limit up, and by the close, the share price was 18.37 yuan/share.
The raised funds will supplement HealthGen's working capital.
Hillhouse intends to subscribe for all the shares issued in HealthGen's 2020 non-public offering through its managed "Hillhouse Capital Management Limited - China Value Fund" (hereinafter referred to as the "China Value Fund"). After deducting issuance expenses, the raised funds will be used in full to supplement HealthGen's working capital.
Hillhouse and its related funds have extensive and in-depth industrial investment and operations in the healthcare industry, covering multiple areas such as chain pharmacies, hospitals, innovative drugs, medical devices, and medical artificial intelligence. In terms of global investment layout in the innovative drug field, as of July 13, Hillhouse has cumulatively invested in 52 innovative pharmaceutical companies, more than half of which are overseas biotechnology companies in the clinical stage.
HealthGen stated that this non-public offering of shares to introduce Hillhouse Capital as a strategic investor, and the subsequent strategic cooperation in areas such as investment and licensing of innovative drugs, expansion of innovative technology platforms, sales channels for respiratory products and other chronic disease medications, health products, and OTC products, as well as the management of the listed company, will enhance the company's overall competitiveness and help it become a pharmaceutical group with international competitiveness.
Specifically, Hillhouse's global layout in the innovative drug field can actively assist HealthGen in introducing innovative drug products under development in key therapeutic areas and high-level R&D technology platforms, such as inhalation formulations, microsphere technology, lipid microemulsion technology, CAR-T cell immunotherapy, and bispecific antibodies; while Gaoji Medical Holdings, a subsidiary of Hillhouse focusing on strategic investment and operation in the greater health field, and its operating chain pharmacy platform, can synergize with HealthGen in the sales channels of respiratory products and other chronic disease medications, health products, and OTC products; at the same time, Hillhouse will provide HealthGen with its own experience in lean manufacturing improvement, digital transformation, and technological empowerment, which has been applied in many of its portfolio companies.
Aiming to become a leading enterprise in respiratory inhalation formulations.
HealthGen is a comprehensive group company integrating the R&D, production, sales, and service of pharmaceuticals and health products. Its business scope covers health products, chemical preparations, traditional Chinese medicine preparations, chemical raw materials and intermediates, diagnostic reagents and equipment, and more. In 2019, the company achieved revenue of 11.98 billion yuan, a year-on-year increase of 6.93%; the net profit attributable to shareholders of the listed company was 894 million yuan, a year-on-year increase of 27.87%.
HealthGen was formerly known as Tai Tai Pharmaceutical. In the 1990s, products such as "Tai Tai Oral Liquid," "Quiet Sleep Oral Liquid," and "Eagle Brand Ginseng" helped HealthGen become one of the most successful health product companies in the market. With increased regulatory control over health products and intensified competition among peers, HealthGen's health product business declined. HealthGen's 2019 annual report shows that health product revenue decreased by 24.71% year-on-year, with chemical preparations becoming the company's largest source of revenue. Prescription drugs include digestive system drugs, cardiovascular drugs, antimicrobial drugs, anti-tumor drugs, neurological treatment drugs, and respiratory system drugs, while over-the-counter drugs include digestive system drugs "Lizhu Dele," "Lizhu Chang Le," and oral ulcer medication "Yi Ke Tie".
At the same time, respiratory drugs have become a key area of focus for HealthGen in recent years. In 2019, the company obtained registration certificates for two respiratory formulation products: Compound Ipratropium Bromide Inhalation Solution and Salbutamol Hydrochloride Inhalation Solution, both of which are first-to-market products. By the end of 2019, the market entry of the two new products was progressing smoothly, with Compound Ipratropium Bromide Inhalation Solution completing bidding and listing in 21 provinces and Salbutamol Hydrochloride Inhalation Solution completing bidding and listing in 14 provinces.
Through this strategic cooperation, HealthGen is expected to rapidly expand the market space for respiratory inhalation formulations, strengthen its R&D innovation capabilities and industrial upgrading, and achieve its strategic goal of becoming a leading enterprise in respiratory inhalation formulations.
Source: Beijing News
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