Lukang Pharmaceutical plans fundraising of RMB1.2 billion yuan for spending on high-end formulation and biopesticide productions

Date:12-26-2024

Lukang Pharmaceutical, a prominent Chinese pharmaceutical group, announced a few days ago that it plans to raise up to RMB1.2 billion yuan via a private placement for spending on a newbuild of smart manufacturing workshops for the production of high-end formulations. 

What is particularly striking is that RMB432 million yuan will be earmarked for biopesticide production, which shows the company’s great emphasis on this emerging industry sector.

Founded in 1966, Lukang Pharmaceutical is engaged in research and development, production, and sales of pharmaceutical products, including antibiotics, amino acids, cardiovascular and cerebrovascular medicines, semi-synthetic antibiotic APIs, biological medicines and formulations, infusions, Chinese patent medicines, pharmaceutical intermediates, antibiotics for animal health, starch, and glucose.

According to Lukang Pharmaceutical, the company has gained rich experiences and resources in biopesticide research, production, and sales. As biopesticides are becoming a new trend in pesticide industry development, the company has planned to utilize its technical advantage in fermentation to seize business opportunities, grow its market share, and improve its profitability and overall competitiveness.

Lukang Pharmaceutical says that something familiar exists between biopesticide fermentation technology and the company’s antibiotic fermentation technology. The company’s experiences in antibiotic fermentation and production support the idea that this technology can be applied to biopesticide research and production. 

So far, Lukang Pharmaceutical has more than 60 biopesticide products in production and sale, while three innovative biopesticides are in the process of registration. Several companies have developed innovative biopesticides via biosynthetic technology, including spinosad, trans-aconitic acid, and physcion, among the product varieties planned to be produced based on the fundraising program. 

Among them, spinosad TC was already approved in June this year, trans-aconitic acid registration-oriented trials have started, and physcion registration data have been submitted. Hence, it has become urgent to kick off the project to allow for the launch of production.

Lukang Pharmaceutical’s fundraising via private placement will not only strengthen the company’s smart manufacturing capability in producing high-end formulations but also accelerate its production layout and development in the biopesticide industry sector, which will be a new source of future growth for the company.