ShangPharma Announces Second Milestone in Move to Enter Chinese Capital Market.
Shanghai, China (June 19, 2017) – ShangPharma, a leading life science partnering organization providing high-quality and cost-effective drug development and discovery services, technology, and investment for the pharmaceutical and biotechnology industry, announced today the intent to join with Quantum Hi-Tech China Biological Co. Ltd.
Quantum, in a press release earlier this week, announced their intent to purchase Shanghai ChemPartner, ShangPharma’s Contract Research and Contract Manufacturing Organizations (CRO/CMO). This type of merger approach was addressed in a press release by ShangPharma in March and is part of the company’s plans to leverage the capital market in China that has been adopted by several biopharmaceutical industry leaders.
“Our team is excited to take another step forward with our plans to list on the Chinese stock exchange. We believe Quantum is the right partner to help Shanghai ChemPartner achieve its vision and goals as a public company. A merger would enable both companies to create more value for shareholders. There is no area of business overlap between the two organizations, and Shanghai ChemPartner will be preserved as a stand-alone CRO/CMO business,” stated Michael Hui, Chairman and CEO of ShangPharma.
This news follows the corporate restructuring of Shanghai ChemPartner earlier this year. Should the Chinese Regulatory Securities Commission approve the merger, the expected timeline for deal closure would be at the end of 2017.
“Shanghai ChemPartner is pleased to have successfully completed a strategic restructuring process, resulting in no functional change to our CRO and CMO businesses. After merger approval, our operational plan is to maintain organizational integrity and remain an autonomous corporate division with our leadership intact. Shanghai ChemPartner’s name will remain the same, and we will continue to provide uninterrupted services to our clients with the existing staff, located at the current facilities, under the same leadership. We will continue to invest in our CRO/CMO businesses and increase the breadth and depth of our service offerings to meet the emerging needs of our clients,” said Livia Legg, Chief Commercial Officer of Shanghai ChemPartner and General Manager of ChemPartner Corporation (US) and ChemPartner EU.
Shanghai ChemPartner, which includes ChemPartner, China Gateway Pharmaceutical Development, China Gateway Biologics, and ChemExplorer, offers a broad range of drug discovery and development capabilities including discovery biologics, discovery chemistry, discovery biology, DMPK, CMC, and biologics manufacturing. Shanghai ChemPartner serves a diverse global client base and has laboratories, business offices, and representatives in the US, Europe, China, and Japan.
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Livia Legg, MS, Chief Commercial Officer