On November 21, 2022 Athenex, Inc., (NASDAQ: ATNX), a global biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies for the treatment of cancer and related conditions, reported the closing of the sale of its equity interests in its China subsidiaries, which primarily represent the Company’s ownership of its active pharmaceutical ingredient (API) manufacturing business in China, to Chongqing Comfort Pharmaceutical Inc. (Chongqing Comfort) (Press release, Athenex, NOV 21, 2022, View Source [SID1234624270]). Chongqing Comfort was assigned the rights and obligations under the Equity Purchase Agreement (Agreement) entered into in July 2022 by TiHe Capital (Beijing) Co. Ltd, pursuant to the terms of the Agreement.
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Gross proceeds from the sale amount to approximately $18 million. At the Closing, Athenex received from Chongqing Comfort approximately $11 million in cash, net of PRC withholding tax and stamp duty, and will receive the remainder of the sale proceeds in two tranches within three and six months of Closing, respectively, pursuant to the terms of the Agreement. The Closing was effective on November 16, 2022.
"We are pleased to have completed the sale of our China API operations, demonstrating our continued progress on the execution of our strategy to monetize non-core assets," said Dr. Johnson Lau, Chief Executive Officer of Athenex. "This incremental step will allow us to remain focused on advancing our NKT cell therapy platform and creating value for our shareholders."
Athenex also entered into a long-term supply agreement with entities controlled by Chongqing Comfort for the supply of APIs needed for Athenex’s small molecule drug products.