GP (HK) Subscribes for New Shares of Sirtex HoldCo and Reaches the TRS Agreements with Natixis. Further Increase Shareholding Rights in Sirtex and Strengthen the Group’s Product Pipeline in the Field of Tumor Precision Interventional
(July 2, 2021 - Hong Kong) China Grand Pharmaceutical and Healthcare Holdings Limited (“GP (HK)” or the “Company”, together with its subsidiaries, the “Group”, stock code: 00512) is pleased to announce that, Grande Decade Developments Limited (“Grande Decade”), a wholly-owned subsidiary of the Company, entered into the Subscription Agreement with Natixis (“Natixis”) and Grand Pharma Sphere Pte Ltd. (“Sirtex HoldCo”). At the same time, the Company entered into the TRS Agreements with Natixis, to further increase the Group's shareholding rights in Sirtex Medical Pty Limited (“Sirtex”), and expand the Group's products pipeline in the tumor field.
Sticking to patients-centered and innovation-driven, the Group will continue to expand its strategic planning in precision interventional tumor field, increase its investment in the world-class innovative products in the fields of radiopharmaceuticals and precision interventional therapy, and introduce world-class innovative products for different cancer indications in response to unmet clinical needs and enrich product pipeline and improve supply chain, dedicating itself into building world-leading radiopharmaceuticals platform and anti-tumor platform integrating diagnostics and treatment.
According to the Subscription Agreement, Grand Decade will subscribe for the shares that Sirtex HoldCo will issue, which represents 8.00% of the issued share capital of Sirtex HoldCo as enlarged by the Subscriptions, for a consideration of US$100 million; and Natixis will subscribe for the shares that Sirtex HoldCo will issue, which represents 4.00% of the issued share capital of Sirtex HoldCo as enlarged by the Subscriptions, for a consideration of US$50 million. Upon completion, Sirtex HoldCo will be owned as to 51.12% by Grand Decade, 44.88% by CDH Genetech Limited, and 4.00% by Natixis.
Sirtex, a wholly-owned subsidiary of Sirtex HoldCo, is an Australian-based global life-sciences company that generates revenue through the sale of SIR-Spheres, a targeted radiation therapy for late stage liver cancer. Sirtex’s SIR-Spheres have been supplied to over 40 countries with revenue primarily generated in the United States. As a result of the Subscription, the net gearing and leverage at Sirtex level will decrease, and the Group will continue to grow Sirtex’s existing global business and fully utilised its great potential of SIR-Spheres Y-90 resin microspheres in China.
The Board of China Grand Pharmaceutical and Healthcare Holdings Limited, commented, “the field of precision interventional tumor is one of the Group’s key strategic directions. The Subscription and the TRS Transaction will allow the Group to increase its shareholding rights in Sirtex and its business of global innovative medical products which will further strengthen the pipeline of products available to the Group. Meanwhile, by entering into the TRS Agreements, the Company will be able to maintain the full economic exposure to the Sirtex HoldCo Shares acquired by Natixis this time without paying the full consideration, which is in the overall interests of the Group.
"Looking ahead, the Group will continue to adopt the strategy of ‘global expansion and dual-cycle operation’, increase investment and development in the world-class innovative products and advanced technologies, to provide patients with more advanced and diverse treatment options in the world, as well as creating greater returns for shareholders.”