HONG HAI/FOXCONN FOUNDER TERRY GUO ANNOUNCES INVESTMENT TO ACCELERATE EIRGENIX’S GLOBAL EXPANSION
[Taipei, Taiwan] – At this year’s Spring Banquet held on April 6th, the Board of directors, major shareholders, and the senior management team of EirGenix, Inc (6589.TT) were witness to a monumental event. Mr. Terry Guo (郭台銘), founder of Hong Hai Precision Industry (Foxxconn), along with EirGenix’s President and CEO, Dr. Lee-Cheng-Liu, signed a letter of intent for investment in EirGenix. In the letter of intent, Mr. Terry Guo announced his plans to invest in EirGenix through the purchase of 55 million shares as a private placement. The share price of the private placement will be set on par with the share price of the company’s planned upcoming FPO (follow-on public offering), which was determined by the Board at 91.5 New Taiwan Dollars (NTD) per share. The full investment could total up to more than NTD 5 billion (approximately USD 176.6 million). To comply with security exchange regulations, the private investment proxy statement will be required to be adapted by the upcoming Board meeting prior to the end of April. This will then to be sent for approval at its next regular shareholder meeting in June. In accordance to Article 43-6 of the Securities of Exchange Act and the regulations of Taiwan’s Stock Exchange Corporation Rules Governing Review of Securities Listings, for securities privately placed by a TWSE-listed or TPEx-listed company, the company shall, for three full years following the delivery date of the private placement securities and the profit requirement, a letter issued by the TWSE or TPEx acknowledging that the securities meet the standards for TWSE listing or TPEx listing before it may file with the FSC for retroactive handling of public issuance procedures.
In the last 10 years and over, Mr. Terry Guo had experienced a great toll from the health conditions suffered by his loved ones and family around him. From a young age, the words of former-president Mr. Chiang Ching-Kuo had always resonated with Mr. Guo. “Seek the profit that is a common interest for the whole society; pursue the fame that is an everlasting fame.” It was such mottos that had inspired Mr. Guo to devote his efforts to charitable health and medical activities. As a result, Mr. Guo established the Yong Ling Foundation, a foundation focused on cancer prevention and treatment, as well as the support of technological research and development, and the nurture of individual talents. His investment into EirGenix this time was decided through a strict, rigorous, and multi-faceted assessment over 4 months. Mr. Guo stated “My two evaluation teams had unanimously ranked EirGenix as their first choice. It was after meeting with EirGenix’s management team that I had a clear understanding of their ideas, their solid and steady spirit, and their global vision. It was after that point I was clear and determined to invest in EirGenix and providing it with a global network in order to expand its business on the global stage. Step-by-step I will help the company internationalize its business and implement automation to accelerate EirGenix’s position and brand value in the global biotech industry.” Mr. Guo stressed that he is not only optimistic about the future of EirGenix, but also optimistic about the future opportunities for Taiwan’s biotech industry to shine internationally.
Just last month, EirGenix announced that the Phase III clinical trial of its breast cancer biosimilar, EG12014 (proposed trastuzumab biosimilar, also called EGI014) had met its primary endpoint and achieved the bioequivalence requirements of both the United States and European Union. Last year, EirGenix’s facilities had received approval from PMDA after a successful inspection by Japan’s Ministry of Health, Labour, and Welfare. Inspection from U.S. FDA and EU’s EMA will shortly follow in the near future. Furthermore, EirGenix had seen substantial growth in its contract development and manufacturing business last year, which had further extended the company’s year-by-year growth in revenue. On the matter of the company’s current position, President and CEO, Dr. Lee-Cheng Liu stated “EirGenix has entered its 9th year in business and has continued to adhere to its dual Product Development & CDMO business model. Both businesses have matured significantly since the beginning and are now well-oiled engines that have driven significant revenue growth in the last 2 years. However, in a mission to compete with top industry players in the competitive global market, the acquisition of significant capital support and international talents has been challenging. In addition to Mr. Guo’s capital investment into EirGenix, he will selflessly assist in providing his long-established political, economic, and industrial contacts all over the world to help EirGenix launch its global strategic plan. EirGenix will be able to accelerate and expand the development of its biosimilar drug product pipeline, as well as the capacity of its contract development and manufacturing services. Based on the existing CDMO business, EirGenix will strive to better integrate and streamline the upstream CRO business (i.e., antibody/protein engineering and special bio-based testing and viral testing) to enhance the source of CDMO business clients. We will also further diversify our CDMO business by entering new fields such as cell and gene therapy. In addition to the existing base in Taiwan, EirGenix will actively work to develop international partnerships, alliances, and merger and acquisition opportunities to further EirGenix’s establishment as a global biopharmaceutical development and manufacturing center.”
The English version is an official translation of the original in Chinese for information purposes only. In case of any discrepancy, the Chinese original will prevail.