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BeiGene forms manufacturing JV with Chinese government entity

March 7, 2017 11:36 PM UTC

BeiGene Ltd. (NASDAQ:BGNE) formed a manufacturing joint venture with a Chinese-government owned subsidiary of Guangzhou GET Holding Corp. Ltd. (Guangzhou, China). The JV, BeiGene Biologics Co. Ltd., plans to construct a manufacturing facility for BeiGene's biologics in Guangzhou and fund development of biologic candidates in China. BeiGene will also contribute one or more biologic assets to the collaboration.

BeiGene and GET will receive 95% and 5% stakes in the JV, respectively. BeiGene will contribute RMB200 million ($29 million), and GET will provide RMB1 billion ($144.9 million) in cash and a shareholder loan which may be converted to an additional mid-single digit equity interest upon achievement of undisclosed regulatory milestones. The loan carries an 8% interest rate. The partners also expect the JV to borrow RMB1 billion ($144.9 million) in commercial bank loans to construct and operate the manufacturing facility...

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