Explanation on news article by Economy Daily NewsNovember 25, 2019
Announcement on Change of General ManagerNovember 28, 2019
- Date of occurrence of the event: Nov 26, 2019
- Company name: OBI Pharma, Inc.
- Relationship to the Company (please enter “head office” or “subsidiaries”): Head office
- Reciprocal shareholding ratios: Not applicable
- Name of mass media: Commercial Times pg. B4, Liberty Times pg. C2, Economy Daily News pg. A13
- Content reported:
“OBI…. The focus for the next 2-3 years will be on 4 main topics, Phase III global clinical studies of OBI-822, OBI-888, OBI-999, and OBI-3424. The remaining projects will be handed over to China subsidiary for further development. China subsidiary will be self-financing and working towards initial public offering in China, Hong Kong, or oversea markets in 5 years…. China subsidiary will periodically transact cash capital increase for a total of 10-30 billion NTD. If cash capital increase reaches to 30 billion, OBI Pharma will reduce shareholding ratio to about 49%.”
“OBI… will authorize 5 products to 100% shareholding China subsidiary, expected authorization value will be around 10-30 billion NTD as subsidiary’s cash capital increase to bring in Chinese investors for local clinical studies. OBI Pharma’s shareholding ratio of subsidiary will be decreasing over time. The subsidiary’s goal is to launch in oversea market, China, Hong Kong, or Singapore in 5 years.”
“OBI will authorize China subsidiary for negotiation of international authorization, indicating market distribution has already started in China.”
- Cause of occurrence: Clarification on News articles
- Countermeasures: The news articles regarding the future development strategies, projects and development values, and expected fundraising location, cash amount, and launching of subsidiary “OBI Pharma Biomedicine Tech (Shanghai)” have not yet been confirmed. Company will release related updates when resolutions are being made. Please refer to MOPS for latest updates.
- Any other matters that need to be specified: New drug development is a long process associated with high costs. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.