A consortium of Chinese investors has agreed to acquire SciClone Pharmaceuticals, the US-based, China-focused specialty pharmaceutical firm, for $11.18 per share in cash. The deal, which values the pharma company at about $605 million, will be funded through a combination of equity and debt financing, a company statement said.
The consortium comprises entities affiliated with GL Capital Management, Bank of China Group Investment, CDH Investments, Ascendent Capital Partners and Boying Investments. The deal price of $11.18 per share is a premium of 16 per cent over SciClone’s 10-day volume-weighted average closing stock price.
Nasdaq-listed SciClone offers a diverse product portfolio spanning major therapeutic markets including oncology, infectious diseases and cardiovascular disorders.
“The Board has determined that a sale of the company at this time is the best way to deliver meaningful value to SciClone’s stockholders. The challenges of continuing to operate as an independent U.S.-based, publicly traded company in the complex, competitive, and increasingly price-sensitive China pharmaceuticals market represent long-term risks to the Company’s ability to maintain a strong growth trajectory and to meet its financial objectives,” Jon S. Saxe, chairman of SciClone’s board of directors, said.
“We believe that SciClone has reached the stage where its long-term future and strategic path forward can best be realized as part of a corporate entity based in and managed from China,” SciClone’s CEO FriedhelmBlobel added.
The company’s net income in 2016 was up 4.3 per cent from the previous year to $30.73 million, on revenue that rose 1.8 per cent to $160.1 million. It has projected 2017 revenues to be between $170 million and $175 million.
The acquisition is expected to close this calendar year, SciClone said, subject to approval by the company’s stockholders and other customary closing conditions.
Source: Deal Street Asia
