HAIKOU, China, April 22 Kun RunBiotechnology, Inc. (the "Company" or "Kun Run") (OTC Bulletin Board: KURU), aleading bio-pharmaceutical company in China that focuses on manufacturing andsales of peptides, peptide-based drugs and small molecule drugs, todayannounced the signing of a private placement agreement totaling approximatelyUS$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, theChairman of the Company's Board of Directors and the majority stockholder ofthe Company.
"We are extremely pleased to have OrbiMed as Kun Run's first institutionalinvestor, marking an important milestone in our company's progress," stated Mr.Cui. "We believe OrbiMed has a distinguished reputation and strong trackrecord in healthcare fund management with a global network that enables ourCompany access to opportunities in the overseas pharmaceutical market. Webelieve that our company's strong foundation in peptides, peptide-based drugsand small molecule drugs, along with OrbiMed's credibility in the healthcarespace, will result in continued growth and return for our shareholders."
Dr. Nancy T. Chang, Chairman and Senior Managing Director of OrbiMed'sCaduceus Asia Partners Fund, will join the board of Kun Run in connection withthis transaction. "We are enthusiastic about the Chinese pharmaceutical marketand 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 drugproducts and pipeline assets and working capital needs.
The Company intends to file a Current Report on Form 8-K with theSecurities and Exchange Commission today, which will include a more detaileddescription of the transaction.
About Kun Run Biotechnology Inc
Kun Run Biotechnology, Inc., together with its subsidiaries, engages inmanufacture and sale of polypeptide medicines. It uses solid phase peptidesynthesis (SPPS) and advanced purifying technology to produce varioustherapeutic polypeptide drugs, of which is "TP-5" most known for efficientlyregulating humans' immune systems in order to defend and cure malignantdiseases. The company maintains two state-of-art manufacturing plants andpossesses one of the largest peptide synthesizing capacities across Asia.
About OrbiMed Advisors
OrbiMed is the world's largest healthcare-dedicated investment firm, withapproximately $5 billion in assets under management. OrbiMed's investmentadvisory business was founded in 1989 with a vision to invest across thespectrum of healthcare companies: from private start-ups to largemultinational companies. OrbiMed manages the Caduceus Private Investmentsseries of venture capital funds and a family of public equity investment funds.
OrbiMed's investment team includes over 30 experienced professionals withbackgrounds in science, medicine, industry, finance and law. The firm'sdiverse team of professionals has a unique understanding of industry dynamicsthrough active participation in both public and private companies. Ourprofessionals work together in a collaborative, team-oriented approach whichseamlessly integrates our public and private equity platforms. OrbiMed seeksto be the capital provider of choice for life sciences companies pursuinggrowth and new opportunities. Where appropriate, particularly within itsventure capital funds, OrbiMed supports its portfolio companies in achievingstrategic, financial and operational objectives via participation at the Boardof Directors level. OrbiMed professionals currently serve on the Board ofDirectors 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 thebusiness of Kun Run Biotechnology, Inc. and its subsidiary companies.Forward-looking statements can be identified by the use of forward-lookingterminology such as "believes," "expects" or similar expressions. Such forwardlooking 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, marketacceptance, future capital requirements, competition in general and otherfactors that may cause actual results to be materially different from thosedescribed herein as anticipated, believed, estimated or expected. Certain ofthese risks and uncertainties are or will be described in greater detail inour 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 newinformation, future events or otherwise. This press release shall notconstitute an offer to sell or the solicitation of an offer to buy nor shallthere be any sale of these securities in any state or jurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of such state or jurisdiction.
SOURCE Kun Run Biotechnology, Inc.