TAIPEI, Taiwan, March 27, 2017 /PRNewswire/ -- TaiGen Biotechnology Co., Ltd. ("TaiGen") announced today that its wholly owned subsidiary, TaiGen Biopharmaceuticals Co. (Beijing), Ltd. ("TGBJ") has executed an equity purchase agreement to sell its 9% equity stake in Dongguan HEC TaiGen Biopharmaceuticals Co., Ltd. ("Dongguan"), a joint venture company between TGBJ and HEC, to YiChang HEC ChangJiang Pharmaceutical Co., Ltd ("HEC").
Under the terms of the Agreement, TGBJ will receive a payment of US $20 million for the 9% equity payable on or before March 31st, 2017. Following the purchase, TGBJ and HEC will hold 40% and 60% equity of Dongguan respectively. TGBJ is eligible to receive additional payments of up to US $20 million upon achieving certain future clinical and regulatory milestones. Furthermore, TGBJ will have an option to re-purchase up to 9% of the equity in Dongguan if certain milestones are met.
Dongguan is established in January 10, 2017 in Dongguang, China, under the October 30, 2017 agreement between TaiGen and HEC. The company's furaprevir (TG-2349), a NS3 protease inhibitor, and yimitasvir (DAG-181), an NS5a inhibitor, are novel direct acting antivirals for the all-oral treatment of chronic hepatitis C virus (HCV) infection. Donguang's focus is in the development, manufacturing, and commercialization of these two assets in mainland China, Taiwan, Hong Kong, and Macau. Both furaprevir and yimitasvir are classified as 1.1 new drugs under China FDA.
About YiChang HEC ChangJiang Pharmaceutical
YiChang HEC ChangJiang Pharmaceutical, a public listed company in the Hong Kong Stock Exchange (1558.HK), focuses on the development, manufacturing and sales of pharmaceutical products in viral infections, endocrine, metabolic and cardiovascular diseases. YiChang HEC is part of HEC Pharmaceutical Group. HEC's leading product, Kewei (oseltamivir phosphate) is the No. 1 selling influenza drug in China from 2013 to 2016. Its products are exported overseas to the US, Japan, Germany and Australia.
About TaiGen Biotechnology
TaiGen Biotechnology, a public listed company in Taipei Exchange (4157.TWO), is a leading research-based biotechnology company in Taiwan. TaiGen's pipeline includes other in-house discovered and developed new chemical entities: Taigexyn®, a novel antibiotic, is one of the first NCEs developed by a Taiwanese company that received market approval and launched in Taiwan and mainland China. Burixafor, a chemokine receptor antagonist, is in Phase 2 clinical development for stem cell transplantation.
For more information please contact:
Peter W. Tsao, PhD, Sr. Vice President Business Development