Deal highlights

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virtual listing

Hong Kong’s virtual listing

InnoCare Pharma launched its initial public offering (IPO) on the Main Board of the Hong Kong Stock Exchange on 23 March, raising about HK$2.24 billion (US$289 million). During the COVID-19 pandemic, the HKEx for the first time conducted a virtual listing ceremony to replace on-site ones. InnoCare is the first company that has held a gong-striking listing ceremony online.

Davis Polk acted as Hong Kong and US counsel, Commerce & Finance Law Offices as PRC counsel, and Ogier as Cayman Islands counsel to the issuer. Skadden acted as Hong Kong and US counsel, while Tian Yuan Law Firm as PRC counsel to the joint sponsors and underwriters.

According to Commerce & Finance, InnoCare is the first biotech company to be successfully listed this year in accordance with the new regulations on the listing of unprofitable biotech companies issued by the HKEx.

InnoCare is a Beijing-based clinical stage biopharmaceutical company focusing on discovery, development and commercialization of molecularly targeted drugs for the treatment of cancer and autoimmune diseases.

A vaccine alliance

Paul Hastings recently advised Fosun Pharma in forming a strategic alliance with Biopharmaceutical New Technologies of Germany (BioNTech) to develop and commercialize a vaccine that prevents COVID-19 infections using BioNTech’s mRNA technology platforms.

Under the agreement, Fosun Pharma will pay BioNTech up to US$85 million in licensing fees and a sales commission of 35% of the product’s annual gross profit over an agreed sales commission period. At the same time, Fosun Pharma will invest US$50 million for additional ordinary shares issued by BioNTech.

BioNTech is one of the leading mRNA technology platform companies in the industry and dedicated to the research and development of immunotherapies for cancer and other serious diseases.

Mergers & acquisitions

Clear Channel Outdoor, one of the world’s largest outdoor advertising companies, has entered into an agreement to sell its 50.91% stake in Clear Media to Ever Harmonic Global for about US$253 million. Ever Harmonic declared its voluntary cash general offer unconditional in all respects on 28 April.

Clear Media is the largest operator of bus shelter advertising panels in China. Kirkland & Ellis advised Clear Channel Outdoor, and offshore firm Walkers acted as legal counsel to Ever Harmonic and its lead financial adviser, CLSA.

Ever Harmonic is wholly owned by a consortium of investors, which comprises Alibaba group’s affiliate, Antfin (Hong Kong), JCDecaux Innovate, China Wealth Growth Fund III, and Clear Media CEO Han Zijing.

Meanwhile Chinese anaesthesia and respiration equipment producer AEONMED Group recently acquired German medical device manufacturer Heyer Medical. Orrick advised Chinese AEONMED Group in the deal.

According to Orrick, the acquisition took place during the restructuring of Heyer Medical, which was completed in late March. Focusing on anaesthesia machines and medical ventilators, Heyer Medical has offices in China, Malaysia, India, Saudi Arabia and the US, and markets its products to 80 countries worldwide.