Jun 26, 2024 05:04 AM
BUSINESS
Fosun Pharma Offers $692 Million to Privatize Innovative Drugmaker Henlius
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Shanghai Henlius Biotech Inc. surged in Hong Kong after its controlling shareholder Shanghai Fosun Pharmaceutical (Group) Co. Ltd. offered to buyout the company in a deal that values the innovative drugmaker at HK$13.37 billion ($1.71 billion).
Fosun Pharma, a unit of China’s private conglomerate Fosun International Ltd., said late Monday that it plans to acquire all the remaining stake in Henlius that it doesn’t own at HK$24.6 per share. Fosun Pharmaceutical currently owns 59.56% of Henlius.
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- Shanghai Henlius Biotech surged in Hong Kong after Shanghai Fosun Pharma offered a HK$13.37 billion ($1.71 billion) buyout at HK$24.6 per share.
- Fosun Pharma plans to pay up to HK$5.4 billion for the remaining stakes, financing via loans and proprietary funds.
- Henlius saw a revenue rise of 67.8% in 2023 to 5.4 billion yuan with its first annual profit, while Fosun Pharma's revenue declined by 5.81%.
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Who’s Who
- Shanghai Fosun Pharmaceutical (Group) Co. Ltd.
- Shanghai Fosun Pharmaceutical (Group) Co. Ltd., a unit of China’s private conglomerate Fosun International Ltd., is a controlling shareholder of Shanghai Henlius Biotech Inc. Fosun Pharma plans to acquire Henlius's remaining stakes for HK$5.4 billion, valuing the company at HK$13.37 billion. The acquisition will use a mix of loans and proprietary funds. Fosun Pharma aims to strengthen synergies and address Henlius's underperformance in the stock market.
- Shanghai Henlius Biotech Inc.
- Shanghai Henlius Biotech Inc., founded in 2010, is the core innovative drug-making business of Fosun Pharma. It debuted on the Hong Kong Stock Exchange in 2019 and saw its share price decline from a peak of over HK$67 to below HK$10 by October 2023. Henlius reported its first annual profit in 2023 with a revenue of 5.4 billion yuan. Its key products include biosimilars like Trastuzumab (Hanquyou) and the PD-1 inhibitor Serplulimab (Hansizhuang).
- Fosun International Ltd.
- Fosun International Ltd. is a private conglomerate based in China, and it is the parent company of Shanghai Fosun Pharmaceutical (Group) Co. Ltd. The company engages in a wide range of businesses, including pharmaceuticals, healthcare, and various other sectors.
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What Happened When
- By the end of 2023：
- Henlius had total assets of 9.9 billion yuan and total liabilities of 7.7 billion yuan.
- October 2023：
- Henlius's stock price plummeted to below HK$10 a share.
- Late Monday, June 24, 2024：
- Fosun Pharma announced plans to acquire all remaining stakes in Henlius at HK$24.6 per share.
- Tuesday, June 25, 2024：
- Shares of Henlius closed at HK$22.5 per share, rising 19.43%.
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