Press release
Catalyst Biosciences Completes First Steps in Reverse Merger Plan
Acquires F351, a Phase 3 Drug to Treat Fibrosis Will Acquire Controlling Interest in Continent, a China-Based Commercial Pharma Company, from the GNI Group in
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[{"type":"text","content":"Acquires F351, a Phase 3 Drug to Treat Fibrosis Will Acquire Controlling Interest in Continent, a China-Based Commercial Pharma Company, from the GNI Group in Subsequent Transaction Announces $7.5 Million Special Dividend and Contingent Value Right (CVR) CBIO Stockholder Meeting Planned for 2023 CBIO to Host Conference Call Today at 8:00 a.m. E.T. SOUTH SAN FRANCISCO, Calif. and TOKYO, Dec. 27, 2022 (GLOBE NEWSWIRE) -- Catalyst Biosciences, Inc. (NASDAQ: CBIO) (“Catalyst”) and GNI Group Ltd. (2160.T) (“GNI”) today announced that the parties have signed definitive agreements for the sale and purchase of GNI’s proprietary new chemical entity F351 program. F351 has shown clinical efficacy as a treatment for both liver and kidney fibrosis. In a separate independent transaction, GNI and other minority stockholders will, subject to stockholder approval and certain customary closing conditions, exchange their controlling interest in Beijing Continent (“Continent”), a commercial-stage pharmaceutical company based in China and majority-owned subsidiary of GNI, for newly issued shares of Catalyst. Catalyst will continue to trade on NASDAQ under the ticker symbol “CBIO” after both transactions. Continent is the first marketer of pirfenidone in China for idiopathic pulmonary fibrosis, which was approved in China in 2011. Continent recorded sales of 513 million RMB ($73 million USD) in the nine months ended September 30, 2022. Continent has operated profitably during the last 5 years while funding a clinical pipeline focused on other fibrosis indications, including F351 for hepatitis B virus (HBV)-associated fibrosis and non-alcoholic steatohepatitis (“NASH”). In conjunction with these transactions, CBIO will distribute $7.5 million on January 12, 2023 as a special dividend and grant a non-transferable (CVR), each to stockholders of record on January 5, 2023. The CVR entitles stockholders of record to future dividends associated with the monetization of Catalyst intellectual property and other assets, including additional potential cash distributions. Catalyst expects the ex-dividend date for its common stock to be January 13, 2023. This distribution follows a previous distribution of $45 million in September 2022. The Company expects to make one or more additional distributions through the CVR in 2023. The acquisition of F351, consummated c...