O’Melveny Worldwide

O’Melveny Represents Viva Biotech in its US$387.3 Million Acquisition of Langhua Pharmaceutical and US$135.4 Million Share Placement

November 16, 2020

 

FOR IMMEDIATE RELEASE

O’Melveny advised Viva Biotech Holdings (1873.HK) in its acquisition of an 80% equity interest in Zhejiang Langhua Pharmaceutical Co., Ltd. (浙江朗华制药有限公司), an integrated and comprehensive drug R&D and manufacturing company, for RMB2.56 billion (approximately US$387.3 million) in an all-cash transaction with a total valuation of RMB3.2 billion (approximately US$484.1 million). This is one of the largest acquisitions of a Hong Kong-listed biotech company so far this year. The purchase agreement was entered into in August 2020, and the transaction closed on November 12, 2020.

Involving complex issues under the Hong Kong listing rules, this deal constitutes a very substantial acquisition for Viva Biotech. The acquisition will enable Viva Biotech to capture potential growth of the contract development and manufacturing (CDMO) wave in China, enhance its geographical coverage with customers in Europe, and realize synergies generally with Langhua Pharmaceutical’s business.

Viva Biotech is a leading integrated drug discovery platform in the PRC, providing drug discovery services to biotechnology and pharmaceutical customers worldwide for their pre-clinical stage innovative drug development.

The O’Melveny team was led by partners Ke Zhu and Ke Geng and included counsel Wei Liu, associate Edward Poon, and paralegal Ronald Lam.

O’Melveny also represented Viva Biotech on its US$194 million IPO and listing on the Hong Kong Stock Exchange in May 2019 as well as its placement of 130,000,000 shares raising approximately HK$1.05 billion (approximately US$135.4 million) in July 2020.

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Contact:

Christopher Rieck
O’Melveny & Myers LLP
+1 212 326 2218
crieck@omm.com

Chris Schob
O’Melveny & Myers LLP
+86 21 2307 7000
cschob@omm.com

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