Gongwin-KY announced on the evening of July 10 that its subsidiary, Gongwin Biopharm, received a letter of intent (LOI) from Fund A on July 9. Fund A plans to participate in the establishment of Gongwin’s U.S. subsidiary and intends to invest up to $50 million USD (approximately NT$1.462 billion), representing about half of the Series A fundraising target of $100 million USD. This round of fundraising is expected to release approximately 20% to 25% of the equity.

Gongwin stated that its board resolved on May 13 to advance the PTS-02 adenoid cystic carcinoma product toward clinical trial application in the U.S. To facilitate this, the company plans to establish a U.S. subsidiary through Gongwin Biopharm to conduct clinical trials locally. Given the high costs of clinical trials in the U.S., the newly established subsidiary will conduct local fundraising, aiming to release 10% to 20% equity to raise between $20 million and $100 million USD. Gongwin has authorized General Manager Lin Mao-Yuan to negotiate fundraising and sign a memorandum of understanding.

In June, Gongwin Taiwan signed a corporate fundraising advisory agreement with Company B to assist with the Series A fundraising for the new U.S. subsidiary, targeting $100 million USD. Company B may act as the main investor through its affiliated investment vehicles or funds, with a planned $50 million USD investment. On July 9, Gongwin Taiwan received the LOI from Fund A, introduced through Company B. After assessing the opportunity and strategic value, Fund A expressed formal intent to acquire 50% of the shares issued by the new U.S. subsidiary, totaling an investment of $50 million USD, or half of the Series A issuance.

Gongwin explained that the newly established U.S. subsidiary will be 75% owned by Gongwin Taiwan, which will contribute the U.S. patents for PTS-302 (for lung cancer central airway obstruction), PTS-02 (for adenoid cystic carcinoma), and PTS-500 (for malignant pleural effusion). The remaining 25% equity will be privately placed to raise $100 million USD, valuing the post-fundraising market capitalization at approximately $400 million USD. Once fundraising is complete, the U.S. subsidiary will commence clinical trials and advance market deployment in the U.S.

According to market data, the global lung cancer treatment market was approximately $15 billion USD in 2022 and is projected to grow to $38.5 billion USD by 2030, with a compound annual growth rate of 12.4%. Non-small cell lung cancer (NSCLC) accounts for about 85% and is the primary treatment category.

Resource: 共信美國子公司將獲A基金公司挹注5,000萬美元 赴美進行臨床試驗