China-based Sichuan Kelun Pharmaceutical Co., Ltd (SHE: 002422) has announced the completion of a financing round at RMB 1.5 billion (USD 215.53 million) for its subsidiary Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. Kelun maintains majority control of the subsidiary with a 59.75% stake, increased from 55.41%. Merck, Sharp & Dohme (MSD; NYSE: MRK), the US major that recently struck over USD 10 billion of licensing deals with Kelun, invested USD 100 million for a 6.95% stake.
Financing Details and Investor Participation
The capital increase is based on the RMB 6 billion (USD 862.13 million) pre-investment market cap. Other investors included IDG Capital, Cinda Asset Management, Sherpa, and others, who will hold a combined 13.48% stake in Kelun-Biotech. This strategic financing round positions Kelun-Biotech to further enhance its R&D capabilities and expand its market presence in the biopharmaceutical sector.
Future Prospects and Strategic Implications
The completion of this financing round underscores Kelun’s commitment to advancing its biopharmaceutical subsidiary, Kelun-Biotech, and strengthening its position in the global market. With the support of strategic investors like MSD, Kelun-Biotech is poised to accelerate the development and commercialization of innovative therapies, addressing significant unmet medical needs.-Fineline Info & Tech
