China's Innovent Biologics plans $610mn share sale to expand production, clinical trials

HONG KONG: China's biopharmaceutical group Innovent Biologics Inc said on Friday it planned to sell HK$4.727 billion ($609.70 million) stake in a share sale, raising funds for expansion of its production facilities and investment in clinical programmes.

The cancer drug developer said in a filing to the Hong Kong bourse that it plans to sell 52 million new shares, or 3.57% of the enlarged share capital, to third-party investors.

The new shares will be issued at HK$90.90 each, representing 4.87% discount to Thursday's close of HK$95.55 apiece.

Proceeds will also be used for building its second production facility in China's Suzhou for TYVYT_, to fund product licensing and possible M&A activities, and expand its production capacity.

Earlier in the week, Innovent said that China's National Medical Products Administration has accepted the supplemental New Drug Application for TYVYT_, or sintilimab injection, as second-line therapy for squamous non-small cell lung cancer.

The Jiangsu-based biopharmaceutical firm said TYVYT_ is co-developed in China by the company and US-based peer Eli Lilly.

Morgan Stanley & Co. International plc, Goldman Sachs (Asia) L.L.C. and J.P Morgan Securities (Asia Pacific) Ltd are the joint placing agents.