China-based Zhejiang Huahai Pharmaceutical Co., Ltd (SHA: 600521) plans to raise RMB 1.56 billion (USD 226.2 million) through the private placement of 148 million shares on the Shanghai Stock Exchange. The proceeds will be directed towards the preparation of a digital intelligent manufacturing construction project and an anti-viral active pharmaceutical ingredients (APIs) multi-function manufacturing platform.
Project Details
The digital intelligent manufacturing construction project and the anti-viral APIs multi-function manufacturing platform will involve an annual production capacity of 100 tons of molnupiravir, 60 tons of nirmatrelvir, 50 tons of vildagliptin, and more. These projects aim to enhance Huahai Pharma’s manufacturing capabilities and meet the growing demand for anti-viral medications.
Strategic Partnerships
Huahai Pharma entered into a manufacturing and supply agreement with US major Pfizer in August last year. Under this agreement, Huahai will provide formulation contract production services for Pfizer’s COVID-19 therapy Paxlovid (nirmatrelvir, ritonavir) in mainland China. Additionally, in February this year, Huahai signed a production and supply agreement with Junshi Biosciences (HKEX: 1877; SSE: 688180). This deal will see Huahai provide manufacturing and supply services for Junshi’s oral nucleoside analog drug JT001 (VV116) for COVID-19.
Strategic Implications
The private placement and the planned projects underscore Huahai Pharma’s commitment to expanding its manufacturing and supply capabilities in the anti-viral space. By securing significant funding and entering into strategic partnerships, Huahai aims to enhance its position in the global pharmaceutical market and contribute to the fight against COVID-19 and other viral diseases. These initiatives are expected to strengthen Huahai’s competitive edge and support the broader goal of improving public health.-Fineline Info & Tech
