YiChang HEC ChangJiang Pharmaceutical Co. Ltd. entered an equity transfer agreement to buy a 9% stake in Dongguan HEC TaiGen Biopharmaceuticals Co. Ltd. from TaiGen Biopharmaceuticals Co.(Beijing) Ltd.
YiChang and the Taigen Biopharmaceuticals Holdings Ltd. unit set up Dongguan as a joint venture in January, to develop hepatitis C treatments.
The consideration of the equity transfer will be $40 million or $20 million, depending on results of phase 2 trials to be conducted by the joint venture, of Furaprevir and Yimitasvir phosphate for the treatment of hepatitis C. YiChang will pay the first installment of $20 million, or the equivalent in Chinese yuan, before March 31. The remaining $20 million will be paid in four tranches, depending on the achievement of certain milestones.
On completion of the equity transfer, YiChang will own a 60% stake in the venture, while TaiGen Biopharmaceuticals will own the remaining 40%.
Further, TaiGen will have the right to buy back up to 9% equity in the venture for $40 million if certain milestones are met.