Athenex Announces Entry into Agreement to Sell its China API Business to TiHe Capital (Bejing) Co., Ltd.
11 July 2022 - 10:00PM
Athenex, Inc., (NASDAQ: ATNX), a global
biopharmaceutical company dedicated to the discovery, development,
and commercialization of novel therapies for the treatment of
cancer and related conditions, today announced that Athenex and
certain affiliates have entered into an agreement to sell all of
its equity interests in its China subsidiaries, which are primarily
engaged in Active Pharmaceutical Ingredient (API) manufacturing
operations, to TiHe Capital (Beijing) Co., Ltd. for RMB 124.4
million, or approximately $19.0 million. Athenex will receive at
least 70% of the proceeds at Closing, followed by 20% within three
months after the Closing Date, and the remaining balance within six
months after the Closing Date. Proceeds from the transaction will
be used in part toward repaying existing debt and operating the
business. The deal is subject to customary closing conditions,
including obtaining certain regulatory approvals in China. Athenex
and TiHe also plan to enter into a long-term supply agreement for
the manufacture and supply of certain API products.
“Following the sale of our Dunkirk facility, as well as the sale
of our U.S. and European tirbanibulin royalty and milestone
interests, the Athenex team continues to execute on our strategy to
monetize our non-core assets, bolster our balance sheet, extend our
cash runway, and focus on our potential best-in-class NKT cell
therapy program,” said Dr. Johnson Lau, Chief Executive Officer of
Athenex. “We continue to look to identify additional opportunities
to deliver on those plans.”
About Athenex, Inc.
Founded in 2003, Athenex, Inc. is a
global clinical-stage biopharmaceutical company dedicated to
becoming a leader in the discovery, development, and
commercialization of next generation cell therapy drugs for the
treatment of cancer. In pursuit of this mission,
Athenex leverages years of experience in research and
development, clinical trials, regulatory standards, and
manufacturing. The Company’s current clinical pipeline is derived
mainly from the following core technologies: (1) Cell therapy,
based on NKT cells and (2) Orascovery, based on a P-glycoprotein
inhibitor. Athenex’s employees worldwide are dedicated to improving
the lives of cancer patients by creating more active, accessible
and tolerable treatments. For more information, please
visit www.athenex.com.
Forward-Looking Statements
Except for historical information, all of the
statements, expectations, and assumptions contained in this press
release are forward-looking statements. These forward-looking
statements are typically identified by terms such as “continue,”
“could,” “expect,” “intend,” “look forward,” “may,” “potential,”
“will,” and similar expressions. Actual results might differ
materially from those explicit or implicit in the forward-looking
statements. Important factors that could cause actual results to
differ materially include: our ability to complete the sale of our
equity interests in our China subsidiaries; our history of
operating losses and the substantial doubt about our ability to
continue as a going concern; our strategic pivot to focus on our
cell therapy platform and our plan to dispose of non-core assets;
our ability to obtain financing to fund operations, successfully
redirect our resources and reduce our operating expenses; our
ability to refinance, extend or repay our substantial indebtedness
owed to our senior secured lender; the development stage of our
primary clinical candidates, including NKT Cell Therapy and related
risks involved in drug development, clinical trials, regulation,
uncertainties around regulatory reviews and approvals; the
preclinical and clinical results for Athenex’s drug candidates,
which may not support further development of such drug candidates;
the Company’s ability to successfully demonstrate the safety and
efficacy of its drug candidates and gain approval of its drug
candidates on a timely basis, if at all; the uncertainty of ongoing
legal proceedings; risks related to our ability to successfully
integrate the business of Kuur Therapeutics into our existing
businesses, including uncertainties associated with maintaining
relationships with customers, vendors, and employees, as well as
differences in operations, cultures, and management philosophies
that may delay successful integration and our ability to support
the added cost burden of Kuur’s business; risks related to
counterparty performance, including our reliance on third parties
for success in certain areas of Athenex’s business; risks and
uncertainties inherent in litigation, including purported
stockholder class actions; the impact of the COVID-19 pandemic and
other macroeconomic factors, such as the war in Ukraine, and their
ongoing impact on our operations, supply chain, cash flow, and
financial condition; competition; intellectual property risks;
risks relating to doing business internationally and in China; the
risk of development, operational delays, production slowdowns or
stoppages or other interruptions at our manufacturing facility as
well as our ability to find alternative sources of supply to meet
our obligations and requirements; the risk that our common stock
will be delisted from the Nasdaq Global Market if we are unable to
regain compliance with its continued listing standards, and the
other risk factors set forth from time to time in our SEC filings,
copies of which are available for free in the Investor Relations
section of our website at
http://ir.athenex.com/phoenix.zhtml?c=254495&p=irol-sec or upon
request from our Investor Relations Department. All information
provided in this release is as of the date hereof, and we assume no
obligation and do not intend to update these forward-looking
statements, except as required by law.
Athenex Contacts
Investor Relations
Daniel Lang, MDAthenex, Inc.E-mail: danlang@athenex.com
Caileigh DoughertyAthenex, Inc.E-mail:
cdougherty@athenex.com
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