The policy of A-share split listing gave birth to a new way for PE giants to cultivate IPO seedlings. Hillhouse capital, a top investment institution, and the global leader in small molecule cdmo industry Asymchem Laboratories (Tianjin) Co.Ltd(002821) , decided to jointly cultivate an excellent “child”.
According to the latest announcement, Asymchem Laboratories (Tianjin) Co.Ltd(002821) will introduce strategic investors such as Hillhouse at the subsidiary level and build the subsidiary into a leading enterprise in the field of global biological medicine and advanced therapy contract R & D and production services (cdmo).
The announcement shows that all parties will do their best to promote the target company to achieve a qualified initial public offering by December 31, 2026.
Asymchem Laboratories (Tianjin) Co.Ltd(002821) is a real bull stock in the A-share market. It has soared from about 16 yuan at the beginning of listing to a record high of 532.49 yuan on November 30, 2021, with a sharp increase of more than 30 times in five years. The correction began after December 2021, and hit a new low of 260.3 yuan on February 11 this year. The stock price was “halved” compared with the historical high, and then started a wave of rebound. As of the closing on March 25, the stock reported 351 yuan, with a current market value of 89.9 billion yuan
It is worth noting that as early as February 2020, Asymchem Laboratories (Tianjin) Co.Ltd(002821) had disclosed the price locking and fixed increase scheme, and planned to raise 2.3 billion yuan, all of which were subscribed by Hillhouse. However, the version of the scheme failed to be implemented in the end. Finally, in October 2020, Asymchem Laboratories (Tianjin) Co.Ltd(002821) disclosed that through inquiry, the amount of raised funds was determined to be 2.311 billion yuan, and there were 9 issuing objects, of which Gaoling was allocated 4.453 million shares, with an amount of about 1 billion yuan. However, at present, Hillhouse has withdrawn from the list of Asymchem Laboratories (Tianjin) Co.Ltd(002821) top ten shareholders.
Hillhouse “coming”
On March 26, Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that in order to promote the development of cdmo (customized R & D and production in the pharmaceutical field) business including macromolecular drugs, antibody coupled drugs, cell gene therapy drugs and mRNA drugs of the company, and meet the capital needs of subsequent capital expenditure and operating expenditure of its subsidiary Shanghai Asymchem Laboratories (Tianjin) Co.Ltd(002821) Biotechnology Development Co., Ltd. (hereinafter referred to as ” Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development” and “target company”), Decided to join hands with Hillhouse and others.
According to the announcement, according to the announcement, it was announced that the announcement of the announcement that the Asymchem Laboratories (Tianjin) Co.Ltd(002821) (Fund), Suzhou Gaoling Qirui medical and health industry investment partnership (limited partnership) (hereinafter referred to as “Gaoling Qirui”) Zhuhai daiheng equity investment partnership (limited partnership) (hereinafter referred to as “Zhuhai daiheng”) and Kailai Tongxin (Tianjin) enterprise management consulting partnership (limited partnership) (hereinafter referred to as “Kailai Tongxin”, shareholding platform) jointly signed the investment agreement.
According to the announcement, Asymchem Laboratories (Tianjin) Co.Ltd(002821) biology was originally a wholly-owned subsidiary of the listed company. According to the investment agreement, it will become a wholly-owned subsidiary of the target company, namely Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development.
According to the terms and conditions agreed in the investment agreement, Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Hao Hong, Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund, Hillhouse Qirui, Zhuhai daiheng and Kailai Tongxin, as investors, will invest in the target company and subscribe for the new registered capital of the target company after the target company completes the wholly-owned acquisition of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biology. Each investor will increase the total capital of the target company by stages in accordance with the investment agreement by no more than RMB 2.534 billion, of which the maximum contribution of Asymchem Laboratories (Tianjin) Co.Ltd(002821) to the target company is RMB 1.66 billion. After all parties complete the first capital increase transaction, the shareholding ratio of Asymchem Laboratories (Tianjin) Co.Ltd(002821) to the target company will be changed from 100% to 83%.
The disclosure shows that among the investors, Zhuhai daiheng and Gaoling Qirui belong to Gaoling. Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund, Kailai Tongxin and Hao Hong are Asymchem Laboratories (Tianjin) Co.Ltd(002821) related parties.
build cdmo leading enterprise and Jianzhi IPO
The target company of this time – Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development was just established on March 23 this year, but high hopes were placed on it.
Asymchem Laboratories (Tianjin) Co.Ltd(002821) said that the company, together with Hillhouse and Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund, intends to jointly contribute to build the target company into a global leader in the field of biological medicine and advanced therapy contract R & D and production services (cdmo). In the future, the target company will be positioned as an exclusive contract R & D and production service (cdmo) enterprise in the Asymchem Laboratories (Tianjin) Co.Ltd(002821) system, including macromolecular drugs, antibody coupled drugs, cell gene therapy drugs and mRNA drugs.
According to the agreement, Asymchem Laboratories (Tianjin) Co.Ltd(002821) and other parties undertake that during the period when they directly or indirectly hold the equity of the target company and within 2 years from the date when they no longer directly or indirectly hold any interest in any target group, they shall not directly or indirectly engage in any business similar to, similar to or in a competitive relationship with the main business of the target group or hold interests in competitive business. Otherwise, Hillhouse and / or Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund have the right to require the target company and / or Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund to repurchase all or part of the equity of the target company held by Hillhouse and / or Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund.
In addition, Hillhouse will have special subscription rights.
The agreement shows that Hillhouse has the right to increase the capital of the target company according to the pre investment valuation of 4 billion yuan of the target company within one year after the delivery date of the first capital increase, so that the shareholding proportion of Hillhouse will increase by 1.00%; Moreover, Hillhouse has the right to increase the capital of the target company according to the pre investment valuation of 7 billion yuan of the target company within two years after the delivery date of the first capital increase, so that the shareholding proportion of Hillhouse will increase by 1.00%.
The announcement shows that the guarantor will try its best to promote the target company to achieve a qualified initial public offering before December 31, 2026, including trying its best to promote the target company to meet the listing conditions according to its main business scope before the above date.
strategic layout
Hillhouse has been in love with Asymchem Laboratories (Tianjin) Co.Ltd(002821) for a long time, and it is precisely the space of cdmo that we are interested in.
It is reported that after 20 years of development, Asymchem Laboratories (Tianjin) Co.Ltd(002821) has become a leading enterprise in the global cdmo industry, serving hundreds of customers, including global pharmaceutical giants such as MSD and Pfizer, as well as emerging Chinese pharmaceutical companies such as zaiding and Hutchison Whampoa.
At the same time, based on the competitive advantage in the field of small molecule innovative drug cdmo, the company gradually extends the service chain to chemical macromolecules such as nucleic acid, polypeptide and polysaccharide and biological drug cdmo, as well as clinical research services.
According to Frost & Sullivan’s data, the global CMO / cdmo industry maintained a sustained growth of more than 10% from 2013 to 2018. In 2018, the global CMO / cdmo market size reached US $66.4 billion. It is expected to maintain a growth of more than 12% in the next four years and reach us $105.7 billion by 2022.
In February 2020, Asymchem Laboratories (Tianjin) Co.Ltd(002821) once disclosed the price locking and fixed increase plan, and planned to raise 2.3 billion yuan, all of which were subscribed by Hillhouse. However, the version of the scheme failed to be implemented in the end.
Finally, in October 2020, Asymchem Laboratories (Tianjin) Co.Ltd(002821) disclosed that the amount of raised funds was 2.311 billion yuan through inquiry. There are 9 issuers, of which Gaoling was allocated 4.453 million shares, with an amount of about 1 billion yuan. However, at present, Hillhouse has withdrawn from the list of Asymchem Laboratories (Tianjin) Co.Ltd(002821) top ten shareholders.
In fact, aiming at the pharmaceutical and medical fields to create Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , strategic investment and layout continue.
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