On January 31, 2021, Luye Pharma Group announced a subscription agreement with Hillhouse NEV, a company of Hillhouse Capital Group, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares represents a premium of 10% over the closing price of the company's stock on the Hong Kong Stock Exchange on the day the agreement was signed. In addition, Hillhouse NEV agreed to receive some of the existing shares from controlling shareholder at the same price. The combined value of the two deals is HK$2.4 billion. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye Pharma.
A leading venture capital (VC) and private equity (PE) investment organization in Asia, Hillhouse is collaborating with Luye Pharma on a strategic level through large equity investment deal. Hillhouse will rely on its extensive footprint and investment portfolio in the global market for innovative drugs to collaborate with Luye Pharma through the whole value chain from research, development and innovation to industrialization and commercialization, and from domestic markets to international markets. As a result, Hillhouse can fully tap into Luye Pharma's leading domestic and international core technologies, seek project collaboration opportunities in Luye Pharma's core areas, and drive resource integration aligned to Luye Pharma's strategic direction. Hillhouse will seek long-term growth with Luye Pharma by investing in and increasing the value of its strategy. Bringing Hillhouse successfully on board attests to the high recognition from the market and the industry for Luye Pharma's innovation strength and market value.
Bringing the best investors including Hillhouse on board also underscores the determination of Luye Pharma to undergo the strategic change that is necessary to become a leading global innovative pharmaceutical company. The marketing approval of Rykindo® proved the strength of Luye Pharma's microsphere technology platform and its global leadership in this platform for novel drug delivery systems. In addition, multiple products from its innovative antibody and compound platforms have also entered the pivotal clinical study and New Drug Application (NDA) phases, and will soon be ready to bring its pipeline to bear. In order to increase its strategic advantage and drive sustainable growth, in addition to extending its existing technology platforms, Luye Pharma will also leverage the strength of new investors to drive strategic change, transformation and upgrading.
Liu Dianbo, Executive Chairman of the Board of Directors, Luye Pharma Group, said: "It's a great honor for us to see that Hillhouse recognizes the value of Luye Pharma, and Hillhouse is also very welcome to become our strategic investor and a major shareholder. We very much appreciate Hillhouse's investment philosophy and its application in practice, which have been successful around the globe for many years. I believe that based on our shared values, the powerful support and collaboration of Hillhouse will provide a tremendous boost to the future growth of Luye Pharma. We will definitely work together to launch many more high-quality new drugs with clinical value, better serve global patients, and create more value for our shareholders."
With the support of Hillhouse, Luye Pharma will, building on its existing international footprint, accelerate innovation and implementation of its strategy internationally, will further leverage the advantage of its own innovative technology platforms to enhance research and innovation, will deepen transformations and upgrades revolving around cutting-edge technologies, and will accelerate new product launch and build global commercial capabilities, to better meet clinical needs.
Michael Yi, Co-Chief Investment Officer and Partner, Hillhouse Capital, said: "Luye Pharma has built a robust pipeline and had a strong R&D capability. The company has been increasing the development and production of innovative drugs in recent years, aiming to provide high-quality pharmaceutical products and professional services. As an investor focusing on innovative industries, Hillhouse hopes to better meet the needs of patients and create a sound industry ecosystem by providing support for the ongoing development and innovation of Luye Pharma."
The focus of Hillhouse is on long-term structured investing in value. The biopharmaceutical industry is one of its key areas. Hillhouse already has a complete footprint in areas including innovative drugs, medical devices, healthcare services, pharmaceutical outsourcing, and retail pharmacy. It has invested in leading companies such as Hengrui Medicine, BeiGene, Innovent Biologics, Top Alliance Biosciences, Hansoh Pharmaceutical, WuXi AppTec, Asymchem, Tigermed, and MicroPort Medical. Hillhouse has demonstrated strengths in integrating resources and professionalizing operations.
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About Hillhouse Capital
Founded in 2005, Hillhouse Capital has focused from the outset on long-term, structured investing, seeking to discover and create value. Through 16 years of growth, Hillhouse has become a leading venture capital and private equity investment organization in Asia in terms of both scale and performance. Its assets under management come mainly from visionary domestic and international institutional investors. As an investor in value with global vision, Hillhouse aims at sustainable and long-term growth. Hillhouse looks for the best entrepreneurs and managers to help companies improve their strategic performance on an ongoing basis through technology innovation, independent research, industry expertise, and world-class operations and management capabilities. It is also keen to tap the potential of entrepreneurs and work together with them to create value. Hillhouse's investment portfolio covers areas such as biopharmaceutical & life sciences, original technologies & enterprise services, consumer & retail, and advanced manufacturing.
On January 31, 2021, Luye Pharma Group announced a subscription agreement with Hillhouse NEV, a company of Hillhouse Capital Group, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares represents a premium of 10% over the closing price of the company's stock on the Hong Kong Stock Exchange on the day the agreement was signed. In addition, Hillhouse NEV agreed to receive some of the existing shares from controlling shareholder at the same price. The combined value of the two deals is HK$2.4 billion. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye Pharma.
A leading venture capital (VC) and private equity (PE) investment organization in Asia, Hillhouse is collaborating with Luye Pharma on a strategic level through large equity investment deal. Hillhouse will rely on its extensive footprint and investment portfolio in the global market for innovative drugs to collaborate with Luye Pharma through the whole value chain from research, development and innovation to industrialization and commercialization, and from domestic markets to international markets. As a result, Hillhouse can fully tap into Luye Pharma's leading domestic and international core technologies, seek project collaboration opportunities in Luye Pharma's core areas, and drive resource integration aligned to Luye Pharma's strategic direction. Hillhouse will seek long-term growth with Luye Pharma by investing in and increasing the value of its strategy. Bringing Hillhouse successfully on board attests to the high recognition from the market and the industry for Luye Pharma's innovation strength and market value.
Bringing the best investors including Hillhouse on board also underscores the determination of Luye Pharma to undergo the strategic change that is necessary to become a leading global innovative pharmaceutical company. The marketing approval of Rykindo® proved the strength of Luye Pharma's microsphere technology platform and its global leadership in this platform for novel drug delivery systems. In addition, multiple products from its innovative antibody and compound platforms have also entered the pivotal clinical study and New Drug Application (NDA) phases, and will soon be ready to bring its pipeline to bear. In order to increase its strategic advantage and drive sustainable growth, in addition to extending its existing technology platforms, Luye Pharma will also leverage the strength of new investors to drive strategic change, transformation and upgrading.
Liu Dianbo, Executive Chairman of the Board of Directors, Luye Pharma Group, said: "It's a great honor for us to see that Hillhouse recognizes the value of Luye Pharma, and Hillhouse is also very welcome to become our strategic investor and a major shareholder. We very much appreciate Hillhouse's investment philosophy and its application in practice, which have been successful around the globe for many years. I believe that based on our shared values, the powerful support and collaboration of Hillhouse will provide a tremendous boost to the future growth of Luye Pharma. We will definitely work together to launch many more high-quality new drugs with clinical value, better serve global patients, and create more value for our shareholders."
With the support of Hillhouse, Luye Pharma will, building on its existing international footprint, accelerate innovation and implementation of its strategy internationally, will further leverage the advantage of its own innovative technology platforms to enhance research and innovation, will deepen transformations and upgrades revolving around cutting-edge technologies, and will accelerate new product launch and build global commercial capabilities, to better meet clinical needs.
Michael Yi, Co-Chief Investment Officer and Partner, Hillhouse Capital, said: "Luye Pharma has built a robust pipeline and had a strong R&D capability. The company has been increasing the development and production of innovative drugs in recent years, aiming to provide high-quality pharmaceutical products and professional services. As an investor focusing on innovative industries, Hillhouse hopes to better meet the needs of patients and create a sound industry ecosystem by providing support for the ongoing development and innovation of Luye Pharma."
The focus of Hillhouse is on long-term structured investing in value. The biopharmaceutical industry is one of its key areas. Hillhouse already has a complete footprint in areas including innovative drugs, medical devices, healthcare services, pharmaceutical outsourcing, and retail pharmacy. It has invested in leading companies such as Hengrui Medicine, BeiGene, Innovent Biologics, Top Alliance Biosciences, Hansoh Pharmaceutical, WuXi AppTec, Asymchem, Tigermed, and MicroPort Medical. Hillhouse has demonstrated strengths in integrating resources and professionalizing operations.
###
About Hillhouse Capital
Founded in 2005, Hillhouse Capital has focused from the outset on long-term, structured investing, seeking to discover and create value. Through 16 years of growth, Hillhouse has become a leading venture capital and private equity investment organization in Asia in terms of both scale and performance. Its assets under management come mainly from visionary domestic and international institutional investors. As an investor in value with global vision, Hillhouse aims at sustainable and long-term growth. Hillhouse looks for the best entrepreneurs and managers to help companies improve their strategic performance on an ongoing basis through technology innovation, independent research, industry expertise, and world-class operations and management capabilities. It is also keen to tap the potential of entrepreneurs and work together with them to create value. Hillhouse's investment portfolio covers areas such as biopharmaceutical & life sciences, original technologies & enterprise services, consumer & retail, and advanced manufacturing.
