For the "return of blood", pharmaceutical companies are acting frequently!

【Pharmaceutical Network Industry News】Recently, the announcement of pioneering pharmaceutical industry shows that founder Tong Youzhi will sell more than 28.
44 million shares at a price of 13.
94 Hong Kong dollars, and at the same time subscribe for 19.
91 million shares conditionally issued by listed companies, and actually reduce its holdings by about 8.
53 million shares
.

The industry believes that the intention of this set of financial operations may be to "return blood"
to the development of the pharmaceutical industry.

In fact, according to the announcement, Tong Youzhi cashed out all the sums of nearly HK$118 million, which are expected to be used to repay loans and interest
payable to the listed company.

At present, the transaction has been completed, and Pioneering Pharmaceutical has raised about HK$390 million from this rights issue transaction, equivalent to the research and development expenses of the first five months
of 2022.

"Blood return" through placement or additional issuance has actually become a common operation for listed companies in recent times
.

According to incomplete statistics, since June 2022, Kangfang Biologics, Zejing Pharmaceutical, Lepu Biologics, Fuhong Henlin and many other enterprises have raised a large number of funds
through this method.

Among them, Kangfang Bio completed the placement of 24 million shares in July this year, raising 580 million Hong Kong dollars, providing strong support
for subsequent product development and commercialization.

Zejing Pharmaceutical announced on the evening of May 19 that the company's board of directors adjusted the scale and use of funds raised in the issuance plan of issuing A-share shares to specific targets in 2021, and the total amount of funds raised was adjusted from no more than 2.
863 billion yuan to no more than 1.
455 billion yuan, and the purpose was adjusted from "new drug research and development project, new drug research and development and production center phase III engineering construction project, supplementary working capital" to "new drug research and development project, new drug research and development and production center phase III engineering construction project"
。
It is worth noting that in addition to selling shares, since this year, many enterprises have "returned blood"
by selling products, selling houses and selling land.

For example, on August 16, Genting ShinYao announced that it had signed an agreement with Omnimudics, a wholly owned subsidiary of Gilead, to transfer to Immunomedics the exclusive right to develop and commercialize its core Trop-2 ADC drug Trodelvy, which it had previously imported from the
company, in Greater China, South Korea and some Southeast Asian countries.

Under the agreement, Genting Shin Yao will receive a total of US$455 million, including an advance payment of US$280 million (subject to regulatory approval) and a potential future milestone of US$
175 million.

It is worth mentioning that the company has publicly stated that "the transaction will significantly extend Genting Sun Yao's cash flow until at least 2026"
.

On August 14, Northeast Pharmaceutical announced that according to business needs, the company will intend to dispose of two residences located in Building 37, Yuzhong West Road, Xicheng District, Beijing, which was built in 1991 with a construction area of 89.
3 square meters and 64 square meters
respectively.

The original value of the assets of the two properties was 2.
85 million yuan
.

From purchase to sale, it is expected that these two sets of Desheng school district houses will bring about 7.
4 times the benefits
to Northeast Pharmaceutical.

In addition, Xinhua Medical also announced recently that it intends to transfer 12.
85% of the equity of Shanghai Chenwei Zhongde Hospital Management Co.
, Ltd.
(hereinafter referred to as "Chenwei Zhongde") jointly held by its two holding subsidiaries, Shandong Honghua and Zibo Hongxin, to Chen Wei
, a natural person.

The purpose of this hospital sale is also to further optimize the asset structure and optimize the allocation
of resources.

Industry analysts believe that as long as there are still things to sell, shares or products, it shows that the company is still developing
.

According to the current point of view, in the pharmaceutical market affected by the reform, the concentration of the current situation continues to increase, whether it is for the purpose of "returning blood", or for the purpose of gathering resources and focusing on the main business, this situation of "selling and selling" will continue
in the future.

Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.