Jiangsu Kanion Pharmaceutical Co., Ltd (SHA: 600557), a China-based pharmaceutical company, has announced its intention to acquire 100% stakes in Xintrum Pharmaceuticals, Ltd, a biologic drug developer, for a consideration of RMB 270 million (USD 37.7 million). Upon completion of the deal, Xintrum will become a wholly owned subsidiary of Kanion.
Xintrum Pharmaceuticals’ Clinical Pipeline and Financials
Xintrum Pharmaceuticals, which specializes in metabolic and neurological diseases, has secured six clinical approvals for four innovative drugs, all of which are currently in clinical stages. Despite being in operation at a loss since its inception, the company has made significant progress in drug development. As of September 30, 2024, Xintrum Pharmaceuticals has an outstanding debt of RMB 479 million (USD 66.9 million) to Kanion. The company’s four core pipelines are anticipated to require an additional investment of RMB 400 million (USD 55.9 million) for clinical development.
Strategic Implications of the Acquisition
The acquisition of Xintrum Pharmaceuticals by Kanion Pharmaceutical is a strategic move that aligns with Kanion’s expansion plans in the biologics sector. By acquiring Xintrum, Kanion aims to bolster its pipeline with innovative drugs targeting metabolic and neurological diseases, potentially enhancing its market position and offering new treatment options for patients.-Fineline Info & Tech
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