Foxconn Subsidiary Invests $90.8 Million in Taiwanese CDMO, EirGenix
Foxconn Technology Group Co., a subsidiary of Hon Hai Precision (Foxconn), announced Wednesday that it acquired a private placement from EirGenix Inc., a Taiwanese contract development and manufacturing organization (CDMO).
The company purchased 27,500 EirGenix shares at NT$91.50 ($3.30) each, for a total value of NT$2.5 billion ($90.8 million). News of the investment brought EirGenix’s share price up NT$6.50 ($0.23) to close at NT$140 ($5.05) on September 22nd, a 4.87% increase.
Considering the closing price, Foxconn Technology’s private buyout enjoyed a 35% discount, which was quite the bargain. The move puts Foxconn Technology’s stake in EirGenix at 9.21%, making it the second-largest shareholder after Terry Gou.
In April, the billionaire Foxconn founder and former chairman dished out around twice the money to acquire an 18.56% stake in EirGenix through his private company, Hung Wei Technology. The cash injections from Hung Wei and Foxconn Technology will spur EirGenix’s expansion into the global CDMO industry and the development of its biosimilar pipeline.
What Does EirGenix Do?
EirGenix offers contract services ranging from the development and manufacture of cell lines to antibody-drug conjugates (ADCs). On the other hand, its products include a COVID-19 rapid testing kit and a carrier protein for vaccine delivery. In addition, the company has a product pipeline of 7 biosimilars, 4 of which target the mutated HER2 protein in breast cancer.©www.geneonline.com All rights reserved. Collaborate with us: email@example.com