Investing.com - Chinese biotech company Luye Pharma Group Ltd (HK:2186) witnessed a drop in share price by 1.56% to HK5.06, after it announced that its subsidiary in Shandong acquired two biological monoclonal antibodies from Shandong Boan Biological Technology Co. Ltd.
Shandong Luye, a wholly-owned subsidiary of Luye, acquired LY01011 and LY09004, two biosimilars, for RMB500 million (US$72.56 million) from Shandong Boan. Both drugs are in clinical development and expected to launch in 2023, if approved.
Shandong Luye will pay 60% of the agreed amount five days after signing the agreement, and another 20% five days after Boan completes the phase III trial of the compounds. The remaining 20% will be due five days after China’s National Medical Products Administration gives the products the green light.
Boan is an indirect subsidiary of Luye Investment PRC, which indirectly owns 66.7% of its shares.