China’s Betta Pharmaceuticals Co., Ltd. (SHE: 300558) plans to raise RMB 1 billion ($140.5 million) through a private placement of 25,967,281 shares at RMB 38.51 ($5.41) per share. The shares will be issued to Ding Lieming, the company’s legal controller. The proceeds will be used to construct a novel drug industrialization base in Shengzhou, Zhejiang Province, and to supplement working capital.
Strengthening Controlling Stake
Ding Lieming, who currently holds a 22.96% stake in the company indirectly, will increase his holding to 27.49% following the transaction. This move is expected to further solidify his controlling position in the company, according to the announcement.
Details of the Industrialization Base
The new facility, a 205.71-mu project with a total investment of RMB 980 million ($137.7 million), is expected to be operational within three years. Once completed, it will have an annual production capacity of 40 tons of active pharmaceutical ingredients (APIs).
Betta Pharmaceuticals’ Portfolio and R&D Investment
Betta Pharmaceuticals commercializes several key drugs, including the epidermal growth factor receptor-tyrosine kinase inhibitor (EGFR-TKI) icotinib, the anaplastic lymphoma kinase (ALK) inhibitor ensartinib, and a biosimilar version of Roche’s Avastin (bevacizumab). The company also has five additional drugs filed for marketing or in late-stage clinical trials. Betta spent RMB 675 million ($94.8 million) in 2019, RMB 742 million ($104.2 million) in 2020, and RMB 861 million ($121 million) on research and development in 2021.-Fineline Info & Tech
