Shares of local drug maker GlycoNex Inc (台灣醣聯) soared yesterday after the company announced plans to sell a 5 percent stake to Japan’s Otsuka Pharmaceutical Co for NT$276 million (US$9.22 million).
The Taiwanese cancer medicine developer said in a statement on Tuesday that Otsuka Pharmaceutical had agreed to purchase GlycoNex stock at NT$100 a share through a private placement deal.
“The deal is expected to further enhance the cooperation between GlycoNex and Otsuka Pharmaceutical and increase our global presence,” the Taiwanese company said.
The two companies have been collaborating on new drug development since 2009.
Shares of GlycoNex gained 6.64 percent to close at NT$106 yesterday.
“The announcement sends out a positive message,” First Capital Management Inc (第一金投顧) said in a note yesterday.
“In addition, GlycoNex is also likely to receive US$1 million in royalties in the fourth quarter this year from Japan-based Mitsubishi Gas Chemical Co Inc,” First Capital added.
SinoPac Securities Co (永豐金證券) welcomed the deal, but said in a separate note that it fell short of a new licensing arrangement that would help boost the Taiwanese company’s bottom line.
GlycoNex reported a net loss of NT$11.94 million, or minus-NT$0.21 per share, in the first quarter of the year.