Special purpose acquisition firm (SPAC) Summit Healthcare Acquisition ( NASDAQ: SMIH ) said on Thursday it would acquire drug maker YS Biopharma in a transaction that is valued at about $834M.
YS Biopharma houses YSJA rabies vaccine, which is one of the leading vaccine for rabies in China, with a total product sales of about RMB503M ($7.06M) in the fiscal year ended March 3.
YS Biopharma also has developed a broad pipeline with its proprietary PIKA immunomodulating technology platform, including four clinical stage candidates, targeting treatments for rabies, COVID-19, hepatitis B, cancer, shingles and influenza.
The combined company will be renamed as YS Biopharma Co., Ltd and will be publicly traded company on the Nasdaq.
Under the deal, YS Biopharma will continue to be led by Yi Zhang, its founder and chairman.
YS Biopharma has over 800 employees and business operations in China, Singapore, the United States, the United Arab Emirates and the Philippines.
The business combination is expected to provide up to approximately $230M in gross proceeds to YS Biopharma, including $30M from Forward Purchase Investors and up to approximately $200M currently held in Summit's trust account.
The Transaction is targeted to be completed in the first quarter of 2023.
A SPAC is a corporation formed for the single purpose of raising capital through an initial public offering, or IPO.
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Summit Healthcare to acquire YS Biopharma in a deal valued at $834M