Aquisition of AMW by Chinese pharmaceuticals group Hybio and private equity firm Yunfeng Capital

Change of ownership at AMW: pharma specialist for drug delivery systems enters new growth stage

Warngau, 04 July 2018. The owners of AMW GmbH are entering into an agreement to sell their shares in the specialty pharma company located in Warngau along with its subsidiary Endomedica GmbH located in Halle (Saale) to a consortium led by Hybio Pharmaceutical and YF capital. The new owners intend to support the further growth of AMW, invest in the development of new products, and advance the company’s internationalization efforts. The sellers include AMW founders, healthcare investor SHS Gesellschaft für Beteiligungsmanagement, funds managed by Bayern Kapital, KfW, IBG Risikokapitalfonds II, BayBG Bayerische Beteiligungsgesellschaft and UVC Partners.

Located in Warngau, Bavaria, AMW was established in 2008 with a focus on the development, production and sale of advanced pharmaceutical formulations such as transdermal drug delivery systems and subcutaneous biodegradable sustained-release implants. Transdermal and parenteral drug delivery systems offer better treatment options in a rapidly growing field of indications in oncology, neurology, dermatology, diabetes and pain treatment. Sold products include Goserelin and Leuprorelin implants as well as Buprenorphine and Rivastigmin patches. AMW has a strong pipeline of newly developed products addressing potential billion-dollar markets.

Hybio is a leading biopharmaceutical company that focuses on research, development, manufacturing and commercialization of peptides and peptide-based drugs. YF Capital is a private equity firm started by a group of successful entrepreneurs and influential industry leaders. With the 100% acquisition of AMW, the new owners are following an international expansion strategy—adding products and a R&D pipeline to the portfolio. Synergies include the use of a global sales force, especially in the key markets of the USA and China, as well as the start of new development projects to address unmet needs. The transaction is still pending formal approval of the regulatory authorities.

“Both Hybio and YF Capital intend to maintain and accelerate the growth of the company’s current structure including the transdermal and parenteral products, business sites in Warngau and Halle (Saale), as well as the skilled employees and management team” says Dr. Albert Huang, Vice President from YF Capital, “with the capacity of a financially strong strategic partners, we do believe that AMW can proceed to the next level in the pharma business, also we strongly believe the collaboration between AMW and Hybio will be highly beneficial for both parties, addressing global market growth opportunities.”

Dr. Wilfried Fischer, managing director of AMW, adds “the commitment of the new owner to the existing product pipeline as well as the willingness to make use of the technology to start new development projects perfectly matches AMW’s long-term strategy.”

Dr. Bernhard Schirmers, founder and managing partner of SHS, comments “together with our co-investors we have backed the company for a long time and are very proud of AMW’s development. This acquisition by a strategic investor underscores the company’s excellent positioning. With the new owner, AMW can enter into the next growth stage.”

About AMW GmbH

AMW GmbH is an innovative and fast-growing specialty pharmaceuticals company headquartered in Warngau near Munich, Germany. AMW develops, produces and sells drug delivery systems with a focus on biodegradable implants and transdermal treatment systems. The company was founded in 2008 and develops solutions for use in oncology, neurology, dermatology and pain management applications.

About Hybio Pharmaceutical:

Incorporated in China, it’s a leading bio-pharmaceutical company that focuses on the research, development, production and commercialization of therapeutic peptides and peptide-based drugs. Hybio has been listed on the Shenzhen Stock Exchange since 2011. Hybio’s main products are focused on the therapeutic areas of digestive diseases, cardio-cerebrovascular diseases, diabetes, infectious diseases, and reproductive system diseases. Hybio has 13 GMP certificates from the CFDA and has invested over $100 million to establish a new finished dosage facility based in Pingshan of Shenzhen City, which includes a production line of solution injection, lyophilization powder and cartridge. Furthermore, Hybio has also built two Active Pharmaceutical Ingredient (API) lines that have passed both the US FDA and EU inspections. A new API production base of larger scale, oral sustained release tablet / capsule and biosimilar product manufacturing line are being established in Wuhan of Hubei Province. Hybio has been active in the global pharmaceutical market for over 10 years. Hybio has filed its first ANDA (Eptifibatide for Injection) on June 19, 2014 and is in the process of developing other complex generic ANDAs.Hybio has also been the peptide API supplier for many top pharmaceutical clients globally. Hybio has launched two generic peptide APIs in 8 European countries, and plans to have additional ANDAs filed and approved in the U.S. in the next few years.

About YF Capital

YF Capital established in early 2010 and named after its co-founder Mr. Jack MA (Yun), executive chairman of Alibaba Group (BABA.N), and Mr. David YU (Feng), founder of Target Media. YF Capital’s focus sectors include internet, technology, healthcare, media & entertainment, financial services, logistic and consumer. YF Capital is a private equity firm started by a group of successful entrepreneurs and influential industry leaders. The mission and vision is not only to provide capital, but also to share with the portfolio companies the experience and lessons learned, helping them to better formulate corporate strategy, optimize organizational structure and establish brand recognition.

About SHS Gesellschaft für Beteiligungsmanagement mbH

SHS Gesellschaft für Beteiligungsmanagement is based in Tübingen, Germany and invests in medical technology and life science companies with a focus on expansion financing, changes in shareholder structures and successor situations. SHS holds minority as well as majority interests. The company was founded in 1993 and has since gained extensive experience as an industry investor, which supports the growth of its portfolio companies through a network of partnerships regarding the introduction of new products, regulatory issues or entering new markets. The SHS fund’s German and international investors include the European Investment Fund, professional pension insurers, retirement funds, funds of funds, family offices, entrepreneurs and the SHS management team. The AIFM-registered company is currently investing from its fourth generation of funds, for which investors have provided 125 million euro. Equity capital of up to 20 million euro is invested. Transactions can be carried out in the mid double-digit million range together with a network of co-investors. Reinhilde Spatscheck, Dr. Bernhard Schirmers, Hubertus Leonhardt and Uwe Steinbacher are the Managing Partners at SHS.

About Bayern Kapital

Bayern Kapital GmbH, based in Landshut, was founded on the initiative of the Bavarian government in 1995. It is a wholly-owned subsidiary of the Bavarian LfA Förderbank. As the venture capital organization of the Land of Bavaria, Bayern Kapital provides equity capital financing for the founders of young innovative technology companies in Bavaria.

Presently Bayern Kapital manages eleven investment funds with a total volume of around €340 million. So far, it has invested almost €260 million in more than 250 innovative companies in the fields of technology in various sectors including life science, software & IT, medical technology, materials and new materials, nanotechnology and environmental technology.

This has helped create over 5,000 long-term jobs in sustainable companies in Bavaria.

About KfW

KfW is one of the world’s leading promotional banks. With its decades of experience, KfW is committed to improving economic, social and ecological living conditions across the globe on behalf of the Federal Republic of Germany and the federal states. To do this, it provided funds totaling €76.5 billion in 2017 alone; and of this, 43% went into measures for protecting the environment and combating climate change.

KfW does not have any branches and does not hold customer deposits. It refinances its promotional business almost entirely through the international capital markets. In 2017 KfW raised some €78 billion for this purpose. In Germany, the KfW Group is represented in Frankfurt, Berlin, Bonn and Cologne. Its network includes 80 offices and representations around the world.

About the IBG funds

The IBG funds, based in Magdeburg, are the risk capital funds of the German state of Saxony Anhalt. The IBG funds provide investment capital up to €5 million for innovative technology SMEs with long-term and above-average growth potential that are headquartered in or have a branch office in Saxony-Anhalt. The IBG funds are managed by bmp Ventures AG, Berlin and Magdeburg.

About BayBG

Through its investments, BayBG is currently strengthening the capital base of 500 Start-ups and medium-sized businesses. The BayBG is thus the one of the market leaders among medium-sized enterprise-oriented investment companies. Through its commitment, the BayBG enables the companies and start-ups to realize expansion and innovation plans, make corporate succession plans as well as optimize their capital structures.

About Unternehmertum Venture Capital Partners

Unternehmertum Venture Capital Partners (UVC Partners) is a Munich-based early-stage venture capital firm that invests in technology-based startups in Germany, Austria, and Switzerland. UVC Partners focuses on investments in the areas of industrial technologies, smart enterprises and mobility. The fund typically invests between €0.5-3 million initially and up to €12 million in total per company.

Portfolio companies benefit from the extensive investment and exit experience of the management team as well as from the close cooperation with UnternehmerTUM, Europe’s leading innovation and business creation center. With over 180 employees and more than 100 industry partners, UnternehmerTUM can draw from many years of experience in establishing young companies. This cooperation enables UVC Partners to offer startups unique access to talent, industry customers and other financial partners.