Date: 2017-03-07
Type of information: Joint-venture agreement
Compound: commercial-scale biologics manufacturing facility in Guangzhou
Company: BeiGene (China) Guangzhou GET Technology Development (China) BeiGene Biologics
Therapeutic area:
Type agreement: joint-venture
Action mechanism:
Disease:
Details: • On March 7, 2017, BeiGene and Guangzhou Development District (GDD) announced that BeiGene HK, a wholly owned subsidiary of BeiGene, and GDD's affiliate Guangzhou GET Technology Development have entered into a definitive agreement to establish a state-of-the-art commercial-scale biologics manufacturing facility in Guangzhou, Guangdong Province, China. The joint venture (JV), BeiGene Biologics Co., Ltd. (BeiGene Biologics), will also provide funding for research and development of biologic drug candidates in China. Total direct investments are expected to be RMB2.2 billion ($330 million). Guangzhou Development District (GDD) is one of the first 14 national economic and technological development zones approved by the State Council in 1984. It mainly focuses on the development of R&D services, life and health science, inspection and other knowledge-intensive industries. Guangzhou GET Technologies Development has been established in 1998. It represents the GDD in performing the functions of an investor and focuses on equity investments in advanced and potential high-tech projects.
Financial terms: Under the terms of the agreement, the cash contributions to BeiGene Biologics consist of RMB200 million ($30 million) from BeiGene HK and a total of RMB1 billion ($150 million) from GET, including cash in equity investment of the joint venture and a shareholder loan, which may be convertible into equity of the joint venture. For additional funding, the manufacturing factory subsidiary of the joint venture is expected to secure commercial loans of RMB1 billion ($150 million).
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