Genelabs Technologies Announces Completion of First Phase Financing for Taiwanese Joint Venture

Genelabs Technologies, a diversified international biopharmaceutical and diagnostics company, has announced the completion of the first phase of financing for its Taiwanese joint venture, Genelabs Biotechnology Limited (GBL). The initiative, valued at NT$153 million, marks a significant milestone in the collaboration between Genelabs and the Taiwanese government, aiming to develop and commercialize pharmaceuticals, vaccines, and other health care products for the Asian market.

Key Takeaways:

• Genelabs Technologies, Inc. has completed the first phase of financing for Genelabs Biotechnology Limited (GBL), a joint venture with the Taiwanese government, totaling NT$153 million (approximately US$14.6 million).
• The financing plan, established in July 1995, includes a total capitalization of NT$875 million, with 40% interest in GBL held by Genelabs, 35% by the Taiwanese government, and 25% by local industrial investors.
• GBL's primary focus will be on the late-stage development, manufacture, and commercialization of pharmaceuticals, vaccines, and other health care products tailored for the Asian market.
• Dr. Irene Chow, President and CEO of Genelabs, will become the Chairperson of GBL's Board of Directors, while Dr. Jen Chen, Vice President of Genelabs Asian Operations, will serve as GBL's General Manager.
• The appointments are contingent upon confirmation at the first official shareholders meeting of GBL, scheduled for November 20, 1995.

Statistics:

• The total capitalization for GBL is NT$875 million, including cash and technology investment.
• The Taiwanese government's investment in GBL is NT$153 million (approximately US$12 million).
• Genelabs has contributed NT$131 million in cash and provided certain technologies to GBL.
• Private investors have pledged NT$109 million, with plans to invest the balance over the next two years under specific conditions.

Sources:

• "Genelabs Technologies Announces Completion of First Phase Financing for Taiwanese Joint Venture." Business Wire, November 13, 1995.