US-based Athenex Inc. (Nasdaq: ATNX) announced an agreement to sell all equity interests in its China-based subsidiaries, primarily involved in active pharmaceutical ingredient (API) manufacturing, to China’s TiHe Capital (Beijing) Co., Ltd for RMB 124.4 million ($19 million). The deal, subject to customary closing conditions, will see Athenex receive ~70% of the payment upfront and the remainder within six months. Proceeds will be used to repay debts and support ongoing operations. Athenex and TiHe plan a long-term supply pact for certain API products.
Background
Athenex has faced financial strain since a March 2021 FDA rejection of its New Drug Application (NDA) for Oraxol, an oral paclitaxel formulation for breast cancer. The firm, which received a $10 million investment from Chongqing Lummy Pharma in 2016, has since divested assets and scaled back operations.
Recent Asset Sales
- June 2024: Sold royalties and milestones for Klisyri (tirbanibulin) in the US and Europe to two funds for $85 million.
- February 2024: Sold a Dunkirk, NY, manufacturing plant to ImmunityBio (NASDAQ: IBRX) for $40 million.
Current Focus
Athenex has narrowed its pipeline focus to NKT cell therapies, with three candidates in clinical or late preclinical stages.-Fineline Info & Tech
