China-based Innovent Biologics, Inc. (HKG: 1801) has announced the decision not to proceed with a subscription agreement between its wholly owned subsidiary, Fortvita, and Lostrancos Ventures Ltd. The agreement would have seen Lostrancos acquire a 20% stake in Fortvita for USD 20.5 million. Despite this setback, Innovent Biologics reaffirmed its commitment to developing its international business and the pivotal role Fortvita will play in achieving the company’s long-term goal of becoming a global biopharmaceutical enterprise.
Fortvita’s Role in Innovent’s Global Expansion
Founded in 2018, Fortvita serves as Innovent’s international business platform, concentrating on the research and development of advanced therapies for difficult-to-treat diseases worldwide. Lostrancos Ventures Ltd is owned by Yu Dechao, who is also the Co-founder, Chairman, and CEO of Innovent Biologics. The market reacted negatively to the news of the equity agreement, leading to a drop in Innovent Biologics’ stock. This decline was fueled by concerns over whether Yu Dechao’s multiple reductions in his holdings of Innovent Biologics were used to subscribe for Fortvita’s equity.- Flcube.com
