STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
NeuroVive (STO:NVP) has established a subsidiary in Taiwan, NeuroVive Pharmaceutical Asia, Inc., which has secured initial funding totaling USD 3,255 m. The funding is sourced from Taiwanese investors, collaboration partner Foundation Asia Pacific Ltd. and the parent company ahead of its potential IPO in Taiwan. The subsidiary strengthens the group’s presence in Asia and will be the driver behind existing project in the region, while conducting its own research and development operations under license from the parent company.
As has already been communicated, NeuroVive is preparing a potential IPO of its subsidiary in Taiwan. The company has established a Taiwanese subsidiary, NeuroVive Pharmaceutical Asia, Inc. (NeuroVive Asia) as a step in this process. NeuroVive Asia has established a wholly-owned subsidiary, NeuroVive Pharmaceutical Asia Taiwan Inc. (NeuroVive Taiwan), in Taiwan to manage local operations.
Alongside collaboration partner Foundation Asia Pacific Ltd., NeuroVive already owns a company for the group’s intellectual property rights in Asia, NeuroVive Pharmaceutical Asia Ltd. (NeuroVive Hong Kong), with its registered office in Hong Kong. The company’s holding in NeuroVive Hong Kong has been converted to the corresponding shares in NeuroVive Asia.
As a result of the restructuring, NeuroVive Hong Kong has received additional territorial rights in Asia for CicloMulsion®, NeuroSTAT® and ToxPhos®. An external valuation agent has calculated the value of the additional rights at USD 3.6 m. This has increased the parent company’s holding in NeuroVive Asia from 70% to 82% before the initial financing.
An initial investment round aimed at strengthening NeuroVive Asia’s financial resources closed on 11 February 2015, raising a total of USD 3,255 m for the company, of which USD 1.0 m from the parent company and USD 2,255 m from Foundation Asia Pacific Ltd. and Taiwanese investors. The parent company’s holding in NeuroVive Asia is estimated at 71.37% following this financing round. The valuation calculated an estimated pre-money market value of USD 12.5 m including the company’s assets.
Michael L. Huang has been appointed CEO of NeuroVive’s Asian group. Michael L. Huang is highly qualified for the assignment and has strong regional contacts.
Stronger Asian position benefits NeuroVive group
The establishment of NeuroVive Taiwan is a step in NeuroVive’s strategic focus on its Asian operations which includes phase III trials in CicloMulsion® in China and countries in East Asia. The Taiwanese company enables NeuroVive to manage its local operations throughout a number of Asian countries outside China, and to expand its existing collaborations with Sihuan Pharmaceutical in China as well as other potential collaboration partners in the region. A clearer presence in Asia is also expected to facilitate the potential future launch of NeuroVive’s products CicloMulsion® and NeuroSTAT® on the Asian market.
The new group structure enables the parent company to cost-effectively generate long-term value for the entire group by transferring early research and development projects as well as projects outside the parent company’s main focus to NeuroVive Asia. This process is expected to shorten the time to market for these projects.
“The market for the biotech and pharmaceutical industry in Taiwan is currently favorable, which has created an attractive climate for small and medium-sized companies with research intensive operations that are looking for capital to expand their operations. The strategy of gradually working towards a potential IPO for a subsidiary in Taiwan has created value, as investors have shown significant interest in the company’s products and its establishment in Asia. The initial financing is a further step towards creating the optimal conditions for commercialization of CicloMulsion® in Asia including China, and to establish a research and development platform in Asia for early-stage projects,” commented NeuroVive’s CEO Mikael Brönnegård.
“I look forward to leading NeuroVive Pharmaceutical Asia, Inc. and to develop the company’s projects efficiently in close collaboration with our partners, including Sihuan Pharmaceutical in China. The company will focus on developing NeuroVive’s leading products CicloMulsion® and NeuroSTAT® within the framework of the licensing rights in Asia, alongside a strong research and development operation in order to create value for shareholders, not least NeuroVive Pharmaceutical AB,” commented Michael l. Huang, CEO of NeuroVive Pharmaceutical Asia, Inc.
Group structure after restructuring
The new group structure consists of parent company NeuroVive Pharmaceutical AB (publ) and subsidiary NeuroVive Asia, with its registered office in Taiwan. In turn, NeuroVive Asia has two wholly-owned subsidiaries, NeuroVive Hong Kong and NeuroVive Taiwan, with their registered offices in Hong Kong and Taiwan respectively.
NeuroVive Pharmaceutical AB (publ), the mitochondrial medicine company, is developing a portfolio of products to treat acute cardiovascular and neurological conditions through mitochondrial protection. These medical conditions are characterized by a pressing medical need and have no approved pharmaceutical treatment options at present. NeuroVive’s products CicloMulsion® (myocardial infarct) and NeuroSTAT® (traumatic brain injury) are currently being evaluated in phase III and phase II studies, respectively. NeuroVive’s research programs also include products for the treatment of brain cell injury in stroke patients, and drug candidates for cellular protection and treating mitochondria-related energy regulation diseases. NeuroVive’s shares are listed on NASDAQ OMX, Stockholm, Sweden.
NeuroVive Pharmaceutical AB (publ) is required to publish the information in this news release under The Swedish Securities Market Act. The information was submitted for publication on 11 February, 2015, at 2.00 p.m. CET.
NeuroVive Pharmaceutical AB (publ) - the mitochondrial medicine company. The company is listed on NASDAQ OMX Stockholm, Small Cap, under the ticker symbol NVP. The share is also traded on the OTC market in the US. NeuroVive Pharmaceutical (OTC: NEVPF) trades on the OTC Grey Market. Investors can find Real-Time quotes and market information for the company at www.otcmarkets.com/stock/NEVPF/quote (http://htt://www.otcmarkets.com/stock/NEVPF/quot)
This information was brought to you by Cision http://news.cision.com