Wuxi raises $80m for its small-molecule manufacturing subsidiary

By Zachary Brennan

- Last updated on GMT

Related tags Stock Stock market Active ingredient

Wuxi raises $80m for its small-molecule manufacturing subsidiary
China-based CDMO (contract development and manufacturing organization) WuXi PharmaTech has raised about $80m for subsidiary SynTheAll Pharmaceutical Co. (STA) via the private placement of 7.16m common shares of STA stock.

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.

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