November 30, 2016. TWi Pharmaceuticals, Inc. (“TWi”, Stock Ticker: 4180.TT) today announced that its Board of Directors resolved to dispose its 65.58% equity investment at Visum Pharmaceutical Co., Ltd (“Visum”) in China. The total consideration is RMB 205 million, and the estimated gains from the disposal are to be approximately RMB 80 million. Upon the completion of the deal, Visum will remain to be TWi’s strategic partner for the manufacturing of TWi-011, the US ANDA filing submitted by TWi in the middle of 2014, for the US market.
There are two elements for this deal – one is equity transaction and the other is the deduction of future profit-sharing for TWi-011. The buyers are Teco Investment Partnership and the management team of Visum at a cost of RMD 197 million for the equity transaction while Visum agrees to pay TWi additional RMB 8 million, upon the completion of the aforesaid equity transaction, in connection with the agreement signed between TWi and Visum in June, 2014 for the future profit-sharing of TWi-011 once launched in the US market. The portion of RMB 8 million to be paid by Visum will be deducted from the share of profits belonged to Visum after TWi-011 officially launches in the US market in the future.
“We are glad and honored to have the opportunity working with Visum,” says Dr. Chih-Ming, Chen, CEO and Chairman of TWi, “our mutual cooperation not only successfully made the ANDA submission of TWi-011 to US FDA in the middle of 2014 but also had the manufacturing site in Hainan, China, passed US FDA inspection in early 2016 and becomes a cGMP-compliant plant certified by US FDA. However, considering the changes in policies and competition landscape in China, both parties agreed that a strategic investor who has more resources in overall value chain of pharmaceutical industry would help Visum to speed up realizing R&D capabilities and core value of the company. Going forward, we will keep working closely with Visum to make sure a successful launch of TWi-011 in the US market. On top of that, we will also continue to look for more potential opportunities of strategic cooperation that maximizes the shareholders’ value.”
About TWi Pharmaceuticals, Inc.
TWi Pharmaceuticals, Inc. is a leading specialty pharmaceutical company based in Taipei, Taiwan, focusing on the development of high-entry-barrier generic prescription products ranging from oral controlled release dosage form to novel drug delivery systems including the utilization of nanoparticles, transdermal, and oral delivery systems. Leveraging its internal research and development capabilities, together with operational flexibility, process development, manufacturing and regulatory expertise, TWi Pharmaceuticals concentrates on products and technologies that present significant barriers to entry or offer unparalleled market opportunities in the United States.
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