Zhitong Financial APP News, Sihuan Pharmaceutical (00460) announced that the company's board of directors unanimously agreed to spin off the shares of Xuanzhu Biotechnology Co., Ltd. (Xuanzhu Bio), a subsidiary of the company, and list it on the Shanghai Stock Exchange (Shanghai Stock Exchange) Science and Technology Innovation Board (proposed spin-off). At present, the company directly holds about 62.39% of the total issued share capital of Xuanzhu Bio. As a result of the proposed spin-off, the company's interest in Xuanzhu will be reduced, but after the completion of the spin-off and listing, the company will remain the controlling shareholder of Xuanzhu.
Xuanzhu Biology is an innovative drug research and development subsidiary of the company, which has an independent and complete independent research and development system of high-level innovative drugs, with the ability of project establishment, design discovery, preclinical pharmacology and efficacy evaluation, CMC process development and pilot scale-up, clinical development, registration and application, which can not rely on Licensein and CRO, and has the ability of continuous independent innovation and continuous production. Xuanzhu Bio has two first-class independent research and development platforms for small and macromolecular innovative drugs. At present, it has more than 25 new drug product pipelines under research and development, covering small molecules, monoclonal antibodies, double antibodies, fusion proteins, ADC and other directions, focusing on tumor, metabolism, digestion and other fields. Among them, Xuanzhu Bio has carried out a comprehensive layout of the main targets of breast cancer, and it is one of the most comprehensive companies in the layout of breast cancer track in China.
The research and development of bamboo biology has made rapid progress. Nearly 10 products are in the clinical stage, with perfect and balanced innovation pipeline layout and strong continuous innovation ability. Xuanzhu Bio is now transforming from Biotech to BioPharm. Many of the company's products are gradually entering clinical phase II and clinical III, and the demand for professional R & D personnel and continuous R & D investment is increasing. Xuanzhu Bio has completed two separate equity financing in August 2020 and December 2021 respectively, with a total of 1.56 billion yuan and a post-investment valuation of nearly 7 billion yuan.
The proposed spin-off will help Xuanzhu Bio to further become an independent innovative drug research and development platform company, with direct access to the debt and equity capital markets, thereby increasing its financial flexibility and its ability to raise external funds. to support the rapid growth and industrialization of its business At the same time, the company can also focus its existing funds and resources on cultivating and developing high-growth medical and beauty business and other new businesses. In addition, as Xuanzhu remains a subsidiary of us after the proposed spin-off, the company and its shareholders will continue to benefit from the future development and growth of Xuanzhu.
The company has obtained the approval of the Stock Exchange for the proposed spin-off of Xuanzhu Bio (together with its subsidiaries collectively referred to as the spin-off Group) in accordance with the 15 Application guidelines of the listing rules (Application guidelines 15). As of the date of this announcement, Xuanzhu Bio has not submitted any formal listing application to any relevant regulatory authorities of Chinese mainland.
The company proposes to spin off for the following reasons:
1. The proposed spin-off will establish a new investor base for Xuanzhu and provide an opportunity to realize the biological value of investing in Xuanzhu, as the spin-off group will be able to attract new investors focused on investment in the innovative pharmaceutical business. Investors will be provided with more details on the business performance of Xuanzhu Bio and will have the opportunity to invest exclusively in Xuan Bamboo Bio's business.
two。 After Xuan Bamboo Bio completes the proposed spin-off and if it is listed on the Shanghai Stock Exchange Kechuang Board, Xuan Bamboo Bio will get stronger financial and resource support, expand pipeline reserves, speed up the layout of industrialization and commercialization, and promote the rapid development of Xuan Bamboo Bio.
3. The proposed spin-off will strengthen the operation and management capacity of Xuanzhu, enable its management team to focus on its own business more efficiently, and enhance its ability to respond to market changes and the unique opportunities of the spin-off group. The proposed split will also make Xuanzhu's business, financial and corporate governance more transparent and orderly, and improve its performance.
4. The proposed spin-off will provide an opportunity for Xuanzhu's business and financial performance to be presented to investors separately, and their performance will be measured by the stock market performance of Xuanzhu relative to similar innovative drug companies listed on the Stock Exchange. The proposed spin-off can also link management incentives to relevant performance, so as to enhance the attractiveness of Xuanzhu biology to excellent management, enhance the subjective initiative of Xuanzhu biological management, and enhance the speed and efficiency of research and development.
5. The completion of the proposed spin-off will help accelerate the enhancement of the biological value of Xuanzhu and help the Group to further focus and transform its medical and beauty business.