Everest Medicines Secures HK$1.57 Billion in Funds
Hong Kong-based biopharmaceutical company Everest Medicines has announced a top-up share placement expected to raise approximately HK$1,553.39 million in net proceeds. The company plans to use these funds primarily to strengthen its financial position and to support its ongoing research and development (R&D) and clinical trial activities.
The placement involves the sale of 22.6 million new shares at around HK$69.70 per share, representing roughly 6.4% of the enlarged share capital. The funds raised will be used to enhance Everest Medicines’ financial flexibility and market position, advance R&D programs across oncology, immunology, cardio-renal, and infectious diseases, and support ongoing and future clinical trials to bring innovative medicines to market in Asia.
One of the key areas of focus for the company is its pipeline of personalized mRNA cancer vaccines. The first patient has been dosed with Everest's internally developed personalized mRNA cancer vaccine (PCV) EVM16 in an investigator-initiated clinical trial. Early results showed strong immunogenicity and specific T-cell responses for EVM16 in advanced cancer patients. The first clinical batch of EVM14 was successfully released from Everest's Jiashan manufacturing site on June 9, and is anticipated to be delivered to U.S. clinical centers by mid-August.
In addition, Everest's in vivo CAR-T program, based on its proprietary targeted LNP (tLNP) delivery system, has shown promising results in humanized mouse models and non-human primates.
Another significant development for Everest Medicines is the acceptance of the New Drug Application (NDA) for Etrasimod (VELSIPITY) in Mainland China and South Korea. VELSIPITY has been commercially launched in Macao SAR, Singapore, and Hong Kong SAR, and is now available at medical institutions designated under the Connect Policy in the Greater Bay Area.
Positive results from EVER001's Phase 1b/2a clinical trial demonstrated rapid onset, durable response, good tolerability, and oral convenience. EVER001, a next-generation covalent reversible BTK inhibitor with global rights, is advancing through global multi-center clinical studies for glomerular diseases such as primary membranous nephropathy (pMN).
The net proceeds from the Placing and Subscription are expected to be approximately HK$1,572.50 million. Everest Medicines plans to use approximately 50% of the net proceeds for global research and development of pipeline products, 40% for commercialization efforts, including the launch of new products, and 10% for working capital and general corporate purposes.
The sale represents a premium of 16.15% compared to the volume weighted average price for the thirty consecutive trading days before the sale. The discount for the sale is approximately 4.98% compared to the average closing price for the five consecutive trading days before the sale.
Everest Medicines is accelerating the strategic advancement of its core pipeline and AI+mRNA technology platforms to further solidify its position as a leading innovative biopharmaceutical company in Asia. The company's inclusion in the National Reimbursement Drug List (NRDL) for NEFECON, an etiological treatment for IgA nephropathy (IgAN), has already benefited over 20,000 patients in China.
[1] Everest Medicines [2] South China Morning Post [4] Reuters
The funds raised from the share placement will be utilized to advance research and development programs, including oncology, immunology, cardio-renal, and infectious diseases (Everest Medicines).
The use of net proceeds from the placement also includes enhancing Everest Medicines' financial flexibility and market position, supporting ongoing and future clinical trials, and driving commercialization efforts, including launching new products (Everest Medicines).
