On 2 June, Yifan Xinfu Pharmaceutical
Co., Ltd. (Yifan Xinfu), a global leading vitamin B5 (VB5, = calcium pantothenate)
producer, announced its plan to make a private placement of ≤ USD286.85 million
(RMB1.89 billion, issue expenses included). After the issue expenses are
deducted, the rest of this sum will be invested into:
Source: Baidu
-
Hefei Yifan Biopharmaceutical Co., Ltd.
(Hefei Yifan, wholly-owned subsidiary of Yifan Xinfu)'s high-end pharmaceutical
preparation project (USD91.06 million – RMB600 million)
-
Acquisition of 53.80% shares in
DHY&Co., Ltd. (DHY) (USD106.34 million – RMB700.68 million)
-
Replenishment of liquid capital (USD83.47
million – RMB550 million)
Yifan Xinfu's private placement plan (for A shares) has been passed by the
board of directors and is waiting for the approval from the China Securities
Regulatory Commission. Specifically,
-
First offering date: the date to set
pricing benchmark
-
Offering price: ≥90% of the average stock
price in 20 business days before benchmark setting date and finally determined
by the board of directors and sponsor institutions (main underwriters) in line
with purchase prices offered by the investors and the principle of price
priority
-
Number of shares to be issued: calculated
on the closing price on 31 May, 2016 (USD2.51/share – RMB16.55/share) and
maximum fund to be raised (USD286.85 million – RMB1.89 billion), given the
undetermined offering date
This private placement is expected to increase Yifan Xinfu's total equity and
net assets. However, given the fact that the high-end pharmaceutical preparation project and DHY's projects are still on the stage of R&D, it
may take long to generate profits. Thus, the company's financial figures, like
return on net assets and earnings per share, are likely to go down in the short
period.
According to Yifan Xinfu's private
placement plan, altogether USD108.21 million (RMB713 million) will be invested
into Hefei Yifan's high-end pharmaceutical preparation project which will focus
on the R&D and production of pharmaceuticals treating
hematologic tumors and other related diseases.
This will further extend
the company's supply chain of active pharmaceutical ingredients (APIs) and
pharmaceutical preparations. When the clinical trials finish and the production
is approved, Yifan Xinfu will further complete its product structure,
especially on hematologic tumor pharmaceuticals.
Early on 7 April, 2016, Yifan Xinfu announced its acquisition of 53.80% shares
in DHY for USD151.77million (RMB1.00 billion). Notably, DHY's wholly-owned
subsidiary, Generon (Shanghai) Co., Ltd. (Generon) aims at global market and
devotes to developing biopharmaceuticals.
It is the first Chinese
bio-macromolecule medicine producer whose products enter phase I and phase II
clinical trials in the US. It has also successfully developed a series of
clinical and pre-clinical innovative bio-macromolecule medicines. These
products has applied for registration in mature markets, like the US and
European, after international standard R&D and clinical trials, and have
the potential to be marketed around the globe.
"This investment will further improve our company's R&D capability and
help us usher in bio-macromolecule medicine business, the most promising field
in the pharmaceutical market so far," disclosed Yifan Xinfu, "Also,
combined with our rich experience in overseas marketing, it will be benefit to
carry forward our international development strategies."
Since 2014, Yifan Xinfu has acquired a number of pharmaceutical enterprises and
undertaken reorganization, so as to transform from a traditional API producer
into an enterprise devoted to producing differentiated pharmaceutical
preparations. So far, this transformation has turned out to be effective: in
2015, the company's business structure changed:
- Pharmaceuticals
-
Revenue: 68% of the total
- APIs and intermediates
-
Revenue: 23% of the total
Notably, in Q1 2016, the company experienced a YoY rise of 38.50% in revenue
and 62.25% in net profit, mainly thanks to increasing sales of pharmaceuticals
from companies acquired last year and the rising market price of VB5.
Yinfan Xinfu's financial performance, 2012-Q1 2016
Source: Yifan Xinfu
Phamaceutical Co., Ltd.
Monthly market price of 98%
feed grade vitamin B5, Jan. 2014-May 2016
Source: CCM
This article comes from Vitamin China E-News 1606, CCM
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Tag: vitamin pharmaceutical