HAIKOU, China, April 22 /PRNewswire-Asia-FirstCall/ -- Kun Run Biotechnology, Inc. (the "Company" or "Kun Run") (OTC Bulletin Board: KURU), a leading bio-pharmaceutical company in China that focuses on manufacturing and sales of peptides, peptide-based drugs and small molecule drugs, today announced the signing of a private placement agreement totaling approximately US$8 million of preferred stock and warrants with Caduceus Asia Partners, L.P., an investment fund managed by OrbiMed Advisors, LLC, and Mr. Xueyun Cui, the Chairman of the Company's Board of Directors and the majority stockholder of the Company.
"We are extremely pleased to have OrbiMed as Kun Run's first institutional investor, marking an important milestone in our company's progress," stated Mr. Cui. "We believe OrbiMed has a distinguished reputation and strong track record in healthcare fund management with a global network that enables our Company access to opportunities in the overseas pharmaceutical market. We believe that our company's strong foundation in peptides, peptide-based drugs and small molecule drugs, along with OrbiMed's credibility in the healthcare space, will result in continued growth and return for our shareholders."
Dr. Nancy T. Chang, Chairman and Senior Managing Director of OrbiMed's Caduceus Asia Partners Fund, will join the board of Kun Run in connection with this transaction. "We are enthusiastic about the Chinese pharmaceutical market and are excited to see quality companies like Kun Run emerge in this market," said Dr. Chang.
The net proceeds will primarily be used for potential acquisitions of drug products and pipeline assets and working capital needs.
The Company intends to file a Current Report on Form 8-K with the Securities and Exchange Commission today, which will include a more detailed description of the transaction.
About Kun Run Biotechnology Inc
Kun Run Biotechnology, Inc., together with its subsidiaries, engages in manufacture and sale of polypeptide medicines. It uses solid phase peptide synthesis (SPPS) and advanced purifying technology to produce various therapeutic polypeptide drugs, of which is "TP-5" most known for efficiently regulating humans' immune systems in order to defend and cure malignant diseases. The company maintains two state-of-art manufacturing plants and possesses one of the largest peptide synthesizing capacities across Asia.
About OrbiMed Advisors
OrbiMed is the world's largest healthcare-dedicated investment firm, with approximately $5 billion in assets under management. OrbiMed's investment advisory business was founded in 1989 with a vision to invest across the spectrum of healthcare companies: from private start-ups to large multinational companies. OrbiMed manages the Caduceus Private Investments series of venture capital funds and a family of public equity investment funds.
OrbiMed's investment team includes over 30 experienced professionals with backgrounds in science, medicine, industry, finance and law. The firm's diverse team of professionals has a unique understanding of industry dynamics through active participation in both public and private companies. Our professionals work together in a collaborative, team-oriented approach which seamlessly integrates our public and private equity platforms. OrbiMed seeks to be the capital provider of choice for life sciences companies pursuing growth and new opportunities. Where appropriate, particularly within its venture capital funds, OrbiMed supports its portfolio companies in achieving strategic, financial and operational objectives via participation at the Board of Directors level. OrbiMed professionals currently serve on the Board of Directors of dozens of different life sciences companies. For more information, please visit: http://www.orbimed.com/
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of Kun Run Biotechnology, Inc. and its subsidiary companies. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Kun Run Biotechnology, Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
|SOURCE Kun Run Biotechnology, Inc.|
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