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TaiGen Beijing Ltd Obtained its 49% Stake in Joint Venture and Completed the 9% Equity Sales to HEC

TAIPEI, Taiwan, June 7th – TaiGen Biopharmaceuticals Holdings Limited (“TaiGen”) announced today that its wholly owned subsidiary, TaiGen Biopharmaceuticals Co. (Beijing), Ltd (“TGBJ”) has obtained its 49% equity stake in Dongguan HEC TaiGen Biopharmaceuticals Co., Ltd (“Dongguan HEC”), a joint venture established by TGBJ and YiChang HEC ChangJiang Pharmaceutical Co., Ltd (“HEC”). TGBJ uses the intellectual property rights of furaprevir (TG-2349) in Greater China as contribution in kind for its stake in Dongguan HEC. The value of TaiGen’s equity in the joint venture will be recognized as a revenue of RMB 117 million (approximately NTD 521 million) in 2nd quarter consolidated financial statement. Immediate following this transaction, TGBJ transferred 9% equity of Dongguan HEC to HEC to complete the equity sales under the March 27th 2017 Agreement between TGBJ and HEC. After the transfer, TGBJ and HEC will hold 40% and 60% equity of Dongguan HEC respectively.

In addition, the payment of RMB 137 million (approximately NTD 613 million) that TGBJ received on March 29th, 2017 for the sale of 9% equity to HEC will be recognized as a non-operating revenue of RMB 116 million (approximately NTD 514 million) in the 2nd quarter consolidated financial statement of TaiGen after deduction of costs. Furthermore, TGBJ is eligible for future milestones of up to US$ 20 million upon achieving certain clinical and regulatory milestones under the terms of the March 27th Agreement. 

 

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