Transgene Receives $22.2 Million from the Sale of Part of its Minority Stake in Tasly BioPharmaceuticals

On August 4, 2020 Transgene (Paris:TNG), a biotech company that designs and develops virus-based immunotherapies for the treatment of cancer, reported that it has raised $22.2 million (€ 19 million) from the sale of 10.3 million shares of its minority stake in Tasly BioPharmaceuticals to a Chinese investment fund (Press release, Transgene, AUG 4, 2020, View Source [SID1234562842]). The shares that have been sold represent 38% of Transgene’s total holding in Tasly BioPharmaceuticals. The transaction enhances the Company’s cash position and strengthens its financial visibility until 2022.

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Following this share sale, Transgene holds 17.1 million shares in Tasly BioPharmaceuticals, equivalent to 1.58% of the Chinese company’s capital. Transgene’s remaining shareholding in Tasly BioPharmaceuticals would be valued at approximately $36.9 million based on the price of the current share sale.

In May 2020, Tasly Pharmaceuticals announced its plan to list its subsidiary Tasly Biopharmaceuticals on the Shanghai Stock Exchange’s Star Market.

Transgene has been a shareholder in Tasly BioPharmaceuticals since August 2018 when it received 27.4 million shares of Tasly Biopharmaceuticals in exchange for the sale of the Greater China rights of T101 and T601, two products respectively incorporating Transgene’s TG6002 and TG1050 patented technologies. At the time, these shares were valued at $48 million based on the pricing of a funding round conducted by Tasly concurrently with Transgene’s share subscription compared to the pre-IPO value of $59 million implied by the current operation.