Wuxi raises $80m for its small-molecule manufacturing subsidiary
The shares represent 6% of STA's current shares outstanding and were bought by 33 institutional investors in China, who have agreed to a lock-up period of 12 months, the same as for STA and WuXi management who purchased shares.
STA provides process chemistry services and manufactures small-molecule advanced intermediates and APIs (active pharmaceutical ingredients) for clients conducting preclinical and clinical trials, and for marketed small-molecule drugs. STA’s operations are located in Shanghai and Changzhou.
The placement comes as STA in April completed the listing of its shares on the New Third Board, the over-the-counter stock exchange in China. Also in April, WuXi sold about 5% of STA to members of its management for $28m.
WuXi still holds an 89% stake in STA, worth about $1.2bn, and STA does not include WuXi's biologic manufacturing operations.
All of this news on STA comes as WuXi is looking to go private, with management trying to buy up all of the company’s shares at $46 per share, which would be a premium of about 15% on the price of WuXi stock as of Friday.
