US$5.5 billion U.S. pharmaceutical "unicorn" collapses, Luxin Ventures' overseas investment is hit hard
Time: 2021 Nian 02 Yue 08 Ri 19:45 | Author: Ron according to the pharmaceutical | Source: Chinese Medicine News | Read: 184 times
Our reporter Wang Lining reports from Beijing
Even with the huge investment of the former world's richest man Bill Gates, the US pharmaceutical "unicorn" company Intarcia Thera-peutics (hereinafter referred to as "Intarcia") still failed to survive and came to a step toward bankruptcy and liquidation.
Intarcia invented a device implanted under the skin, the "magic small drug pump", which was regarded as an important breakthrough in the treatment of diabetes and AIDS. The global medical community was once boiled, and the company was valued as high as 5.5 billion US dollars. One of 40 startups that disrupt the world".
The bankruptcy and liquidation of Intarcia not only caused heavy losses to Bill Gates, Silicon Valley Bank, and GGV Jiyuan Capital, but also caused considerable losses to China's first listed venture capital company Luxin Ventures (600783.SH). In 2016 and 2020, Luxin Ventures made two rounds of investment in Intarcia through its subsidiaries, with a total investment of nearly 200 million yuan.
Recently, Luxin Ventures issued an announcement stating that Intarcia has commissioned a third party to implement asset disposal and liquidation procedures. Luxin Ventures plans to lower its valuation to zero this time, and is expected to incur a loss of RMB 140 million from changes in fair value.
The medical "unicorn" that fell to the altar
According to the data, Intarcia was founded in 1997 and is headquartered in Boston, Massachusetts. It is a medical and health service company that focuses on the approval and release of its implantable drug pump, which is designed for the treatment of diabetes.
The founder and CEO of Intarcia is Kurt C. Graves, who graduated from Hillsdale College and once worked for Novartis Pharmaceuticals and Merck. A reporter from China Business Daily saw on Intarcia's official website that Intarcia claims to be a new biotechnology company dedicated to redesigning the treatment, prevention and experience of chronic diseases. The interdisciplinary team includes visionary scientists and entrepreneurs.
A subcutaneous implantable chemical pump the size of a matchstick produced by Intarcia is called the "magic small drug pump". After Sina implants it, it can be implanted for diabetes patients for a year of drug treatment.
Bill Gates used to be very optimistic about this company and said that the drug device produced can be combined with HIV preventive agents and has broad prospects in HIV prevention and treatment.
In recent years, this star pharmaceutical company has been sought after by capital and has obtained more than ten rounds of financing. Investment institutions include RACap-ita, ForesteCapital, Bill and Melinda Gates Foundation, Silicon Valley Bank, GGV Jiyuan Capital and so on.
With the continuous increase of many investment institutions, Intarcia's valuation has also risen. At the beginning of 2014, its valuation was US$1.5 billion; in 2015, its valuation rose to US$3.5 billion; at the end of 2016, its valuation was US$5.5 billion.
However, Intarcia's progress in medicine has not been smooth. In 2014, Int-arcia announced that the company's phase III diabetes drug clinical study has made significant achievements. In November 2016, Intarcia submitted an application to the U.S. Food and Drug Administration (hereinafter referred to as "FDA") for the implantable micro-osmotic pump product ITCA650 for the treatment of diabetes.
In 2017, the FDA rejected the ITCA650 listing application because of "concerns about manufacturing issues." After the application was rejected, Intarcia terminated two phase III clinical trials and laid off 30% of its employees.
In October 2019, Intarcia filed a new drug application again after rectifying related issues, but the FDA rejected its application for the second time in March 2020.
Luxin Venture Capital invested nearly 200 million yuan twice
After two vetoes by the FDA, the situation of this company, which was once valued at 5.5 billion U.S. dollars, continued to deteriorate. After more than 1 billion U.S. dollars of financing was burned out, it was difficult to sustain its operations.
On July 14, 2016, Luxin Ventures announced an overseas investment announcement. At that time, Intar-cia conducted an E round of financing and planned to raise US$40002 million. Luxin Ventures established a special purpose company (SPV) DRAG-ONRIDERLIMITED in Cayman, and planned to invest US$50 million at the time. In the end, Luxin Ventures invested 30 million US dollars to subscribe for 500,000 shares of Intarcia, with a shareholding ratio of 0.77%.
In response to this reporter, Luxin Ventures stated that when the company participated in the investment in Intar-cia in 2016, its core product ITCA650 had completed Phase III clinical trials. In the medical industry, companies that have completed Phase III clinical trials belong to the most certain project category among companies in the early R&D stage.
In February 2020, Intarcia plans to raise US$280 million in the form of convertible bonds. Luxin Ventures continues to participate in the current round of Intarcia's convertible bonds, with a capital contribution of US$2.207 million. The maturity date of the convertible bond is July 18, 2021, and the annual interest rate is 6%. After this financing, Luxin Ventures holds 0.663% of Intarcia's equity.
In the first half of 2020, due to the impact of the epidemic, the Luxin Venture Capital Investment Fund’s due diligence on some projects has been delayed, and the investment progress has slowed down. In the first half of 2020, only 6 project investments were completed, including Intarcia. investment.
It is worth noting that the operating conditions of Intar-cia, which burns money, have always been very bad. In March 2020, Luxin Ventures disclosed Intarcia's financial indicators for the first time. According to the data, as of the end of 2018, Intarcia had total assets of 88.036 million U.S. dollars and net assets of 1.693 billion U.S. dollars; 2018 revenue was only 395,000 U.S. dollars and net profit was -2.37. One hundred million U.S. dollars. As of October 31, 2019, Intarcia's total assets were 89.626 million U.S. dollars and net assets were 1.867 billion U.S. dollars. From January to October 2019, Intarcia had revenues of 647,000 U.S. dollars and net profit of -230.6 million U.S. dollars.
Now, as Intarcia enters bankruptcy and liquidation, with a net asset of US$ 1.867 billion, it is expected that all investment institutions’ investment will be wiped out. Based on this, Luxin Ventures incurred a loss of RMB 140 million in fair value changes.
In its reply, Luxin Ventures stated that the probability of the investment being basically unrecoverable is relatively certain. Therefore, out of the principle of prudence, it intends to conduct the above accounting treatment and disclose it in a timely manner.
Article Title: US$5.5 billion U.S. pharmaceutical "unicorn" collapses Luxin Ventures' overseas investment is hit hard
Article address: 55亿美元美国医药“独角兽”崩塌 鲁信创投海外投资受重创-朗依制药
Time: 2021 Nian 02 Yue 08 Ri 19:45 | Author: Ron according to the pharmaceutical | Source: Chinese Medicine News | Read: 184 times
Our reporter Wang Lining reports from Beijing
Even with the huge investment of the former world's richest man Bill Gates, the US pharmaceutical "unicorn" company Intarcia Thera-peutics (hereinafter referred to as "Intarcia") still failed to survive and came to a step toward bankruptcy and liquidation.
Intarcia invented a device implanted under the skin, the "magic small drug pump", which was regarded as an important breakthrough in the treatment of diabetes and AIDS. The global medical community was once boiled, and the company was valued as high as 5.5 billion US dollars. One of 40 startups that disrupt the world".
The bankruptcy and liquidation of Intarcia not only caused heavy losses to Bill Gates, Silicon Valley Bank, and GGV Jiyuan Capital, but also caused considerable losses to China's first listed venture capital company Luxin Ventures (600783.SH). In 2016 and 2020, Luxin Ventures made two rounds of investment in Intarcia through its subsidiaries, with a total investment of nearly 200 million yuan.
Recently, Luxin Ventures issued an announcement stating that Intarcia has commissioned a third party to implement asset disposal and liquidation procedures. Luxin Ventures plans to lower its valuation to zero this time, and is expected to incur a loss of RMB 140 million from changes in fair value.
The medical "unicorn" that fell to the altar
According to the data, Intarcia was founded in 1997 and is headquartered in Boston, Massachusetts. It is a medical and health service company that focuses on the approval and release of its implantable drug pump, which is designed for the treatment of diabetes.
The founder and CEO of Intarcia is Kurt C. Graves, who graduated from Hillsdale College and once worked for Novartis Pharmaceuticals and Merck. A reporter from China Business Daily saw on Intarcia's official website that Intarcia claims to be a new biotechnology company dedicated to redesigning the treatment, prevention and experience of chronic diseases. The interdisciplinary team includes visionary scientists and entrepreneurs.
A subcutaneous implantable chemical pump the size of a matchstick produced by Intarcia is called the "magic small drug pump". After Sina implants it, it can be implanted for diabetes patients for a year of drug treatment.
Bill Gates used to be very optimistic about this company and said that the drug device produced can be combined with HIV preventive agents and has broad prospects in HIV prevention and treatment.
In recent years, this star pharmaceutical company has been sought after by capital and has obtained more than ten rounds of financing. Investment institutions include RACap-ita, ForesteCapital, Bill and Melinda Gates Foundation, Silicon Valley Bank, GGV Jiyuan Capital and so on.
With the continuous increase of many investment institutions, Intarcia's valuation has also risen. At the beginning of 2014, its valuation was US$1.5 billion; in 2015, its valuation rose to US$3.5 billion; at the end of 2016, its valuation was US$5.5 billion.
However, Intarcia's progress in medicine has not been smooth. In 2014, Int-arcia announced that the company's phase III diabetes drug clinical study has made significant achievements. In November 2016, Intarcia submitted an application to the U.S. Food and Drug Administration (hereinafter referred to as "FDA") for the implantable micro-osmotic pump product ITCA650 for the treatment of diabetes.
In 2017, the FDA rejected the ITCA650 listing application because of "concerns about manufacturing issues." After the application was rejected, Intarcia terminated two phase III clinical trials and laid off 30% of its employees.
In October 2019, Intarcia filed a new drug application again after rectifying related issues, but the FDA rejected its application for the second time in March 2020.
Luxin Venture Capital invested nearly 200 million yuan twice
After two vetoes by the FDA, the situation of this company, which was once valued at 5.5 billion U.S. dollars, continued to deteriorate. After more than 1 billion U.S. dollars of financing was burned out, it was difficult to sustain its operations.
On July 14, 2016, Luxin Ventures announced an overseas investment announcement. At that time, Intar-cia conducted an E round of financing and planned to raise US$40002 million. Luxin Ventures established a special purpose company (SPV) DRAG-ONRIDERLIMITED in Cayman, and planned to invest US$50 million at the time. In the end, Luxin Ventures invested 30 million US dollars to subscribe for 500,000 shares of Intarcia, with a shareholding ratio of 0.77%.
In response to this reporter, Luxin Ventures stated that when the company participated in the investment in Intar-cia in 2016, its core product ITCA650 had completed Phase III clinical trials. In the medical industry, companies that have completed Phase III clinical trials belong to the most certain project category among companies in the early R&D stage.
In February 2020, Intarcia plans to raise US$280 million in the form of convertible bonds. Luxin Ventures continues to participate in the current round of Intarcia's convertible bonds, with a capital contribution of US$2.207 million. The maturity date of the convertible bond is July 18, 2021, and the annual interest rate is 6%. After this financing, Luxin Ventures holds 0.663% of Intarcia's equity.
In the first half of 2020, due to the impact of the epidemic, the Luxin Venture Capital Investment Fund’s due diligence on some projects has been delayed, and the investment progress has slowed down. In the first half of 2020, only 6 project investments were completed, including Intarcia. investment.
It is worth noting that the operating conditions of Intar-cia, which burns money, have always been very bad. In March 2020, Luxin Ventures disclosed Intarcia's financial indicators for the first time. According to the data, as of the end of 2018, Intarcia had total assets of 88.036 million U.S. dollars and net assets of 1.693 billion U.S. dollars; 2018 revenue was only 395,000 U.S. dollars and net profit was -2.37. One hundred million U.S. dollars. As of October 31, 2019, Intarcia's total assets were 89.626 million U.S. dollars and net assets were 1.867 billion U.S. dollars. From January to October 2019, Intarcia had revenues of 647,000 U.S. dollars and net profit of -230.6 million U.S. dollars.
Now, as Intarcia enters bankruptcy and liquidation, with a net asset of US$ 1.867 billion, it is expected that all investment institutions’ investment will be wiped out. Based on this, Luxin Ventures incurred a loss of RMB 140 million in fair value changes.
In its reply, Luxin Ventures stated that the probability of the investment being basically unrecoverable is relatively certain. Therefore, out of the principle of prudence, it intends to conduct the above accounting treatment and disclose it in a timely manner.
Article Title: US$5.5 billion U.S. pharmaceutical "unicorn" collapses Luxin Ventures' overseas investment is hit hard
Article address: 55亿美元美国医药“独角兽”崩塌 鲁信创投海外投资受重创-朗依制药