Synmosa Biopharma announced on the evening of the 15th that it will launch a public tender offer for 15% to 30% of Genovate Biotechnology’s shares at NT$24 per share — representing a 30.08% premium. This marks the first-ever acquisition attempt among Taiwan’s long-established pharmaceutical companies, sending shockwaves through the industry. The tender offer is set to begin before September 17 and end on October 7, lasting 21 days, with a maximum transaction value of NT$827 million.

Genovate Chairman Chen Cheng stated that even if the two companies are to “form a partnership,” cooperation should come first — building consensus and trust before discussing equity participation.

Synmosa has long shown strong interest in Genovate. Twenty years ago, Synmosa, together with the National Development Fund, once sought to gain control of Genovate by collecting shareholder proxy votes. However, the plan was shelved due to differences with Genovate’s management and its major Hong Kong-based shareholder. Despite that, Synmosa has remained fond of Genovate — according to recent annual reports, its stake rose from 0.19% in 2021 to 1.31% in the first quarter of this year, and further increased to 3.03% in the second quarter.

Under the announced plan, Synmosa will acquire 15% to 30% of Genovate’s shares in cash at NT$24 per share. Based on Genovate’s closing price of NT$18.45 on the 15th, the offer represents a 30.08% premium. The maximum purchase volume is set at 34,466,260 shares, with a minimum threshold of 17,233,130 shares.

Founded in 1993, Genovate Biotechnology specializes in the research, development, and manufacturing of small-molecule new drugs and generic drugs, operating production facilities compliant with PIC/S GMP standards. Chairman Chen Cheng, one of Taiwan’s earliest returnee executives from overseas, brings extensive new drug development experience. Genovate’s injectable plant and its subsidiary Haoyu, known as a “golden goose,” are among the key attractions driving Synmosa’s acquisition.

Synmosa stated that this acquisition aims to strengthen and deepen its long-term collaboration with Genovate, jointly enhancing Taiwan’s pharmaceutical supply resilience while gradually expanding into Asia-focused international markets.

Synmosa Chairman Peter Lin announced earlier in March that the company would embark on a new six-year international expansion and operational upgrade plan, targeting NT$30 billion in revenue by 2030. The initial phase involves acquiring two pharmaceutical companies — one in Taiwan and one overseas — within two years, with a total investment budget of NT$9 billion. Acquisition targets will be prioritized based on potential synergies and complementary capabilities.

Peter Lin, who has been committed to transforming Synmosa into a major regional pharmaceutical group, has long emphasized the management philosophy of “competing globally, winning through manufacturing.” Since 2008, he has actively pursued acquisitions and strategic integrations, stirring the local pharmaceutical landscape. Of the companies he has acquired since 2017, all except Hong Kong-based Hip Hong are rooted in Taiwan.

From a fundamentals perspective, Synmosa’s acquisition strategy primarily targets pharmaceutical manufacturers and drug licenses, spanning generics, new drugs, active pharmaceutical ingredients (APIs), pharmacy chains, and regulatory approvals.

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