3SBio secures $400M to accelerate innovative drug development plans
Hong Kong-listed 3SBio Inc. is raising HK$3.12 billion ($400 million) through a share placement to fund its shift towards innovative drug development. The move comes as the company divests its stake in Mandi International, a profitable hair-loss treatment subsidiary, to focus solely on pharmaceuticals.
Between December 2 and December 17, 2021, 3SBio secured HK$3.12 billion in a share placement priced at a 6.5% discount. The net proceeds, estimated at HK$3.09 billion, will be allocated primarily to research and development. Around 80% will fund clinical trials and infrastructure upgrades, while the remaining 20% will cover working capital needs.
The placement and spin-off mark a clear strategic shift for 3SBio. The funds will accelerate drug development, while the separation of Mandi International allows the company to concentrate on its core pharmaceutical business. With a strong market performance this year, the moves position 3SBio for further expansion in the biotech sector.
