Since its initial listing, Viva Biotech has successfully completed mergers and acquisitions, including SYNthesis and Langhua Pharmaceutical, resulting in synergistic effects in the development of an integrated platform for CRO and CDMO product research, development, and manufacturing
On 11 June 2023, Viva Biotech Holdings Group made an announcement regarding significant developments in its CRO business. Viva Shanghai, the primary entity responsible for Viva Biotech’s CRO operations, raised nearly $150m by transferring approximately 24% of its equity interest to Temasek, HLC, and True Light.
As a result of this financing, Viva Biotech’s listed entity also received approximately $60m. Additionally, this transaction revealed the company’s intention to eventually list its CRO business separately on the A-shares market.
Viva Biotech has achieved impressive growth in its CRO drug discovery and development business through its SBDD strategy and continuous efforts over the years.
Notably, the company has established itself as a global leader in the biopharmaceutical industry, particularly in the field of protein structural analysis.
Since its initial listing, Viva Biotech has successfully completed mergers and acquisitions, including SYNthesis and Langhua Pharmaceutical, resulting in synergistic effects in the development of an integrated platform for CRO and CDMO product research, development, and manufacturing.
Through a combination of internal expansion and external partnerships, Viva Biotech has experienced a record-breaking revenue growth, from approximately RMB323m in 2019 to approximately RMB2.38bn in 2022, representing a compound annual growth rate of approximately 94.57% during this period.
Similarly, its gross profit has increased from approximately RMB156m to approximately RMB816m in 2022, demonstrating a compound annual growth rate of approximately 73.61%.
The financing secured by Viva Biotech will not only bring strategic investors on board but also support its future A-shares listing plans. This development showcases Viva Biotech’s effective integration of its inherent strengths with capital empowerment, highlighting its forward-thinking approach and ambitious objectives.
Viva Biotech chairman and CEO Dr Cheney Mao said: “It is our great honour to introduce renowned strategic investors who will furnish and enhance our key strategic decisions and long-term investment and financing plans.
“Despite the recession in investment and financing, we are able to secure investment from established institutions, by virtue of our pioneering spirit and continuous innovation in the past. This demonstrates the market’s recognition of our business foundation and confidence in our development prospects.
“Furthermore, the commitment to our goal of A-shares listing and the valuation premium from A-shares compared to the HK stock market will facilitate the financing needs for our future development. in addition, our plan to increase executive share ownership and provide Employee Stock Ownership Plan (ESOP) to the core team members will revitalise Viva and open up new opportunities for our long-term growth.”
HLC said: “Based on a thorough analysis of the development features of the biopharmaceutical industry, the operation rules of the capital market, and the unique attributes of Viva Biotech, upon our in-depth and sincere discussion and research with Viva Biotech’s management team, the investment in Viva Biotech is a transaction for the enhancement of overall development and realization of value of the Company, as well as an improvement plan on corporate governance system.
“We hope that through our joint efforts, Viva Biotech will further unleash its value through its world-leading structure-based new drug discovery service platform and other business segments, meet global customers’ needs by providing integrated “CRO+CDMO” services and realize stable and long-term growth.”