Kun Run Biotechnology, Inc. (the "Company" or "Kun Run") (OTC Bulletin Board: KURU), a leading bio-pharmaceutical company in China that focuses on manufacturing and sales of peptides, peptide-based drugs and small molecule drugs, today announced the signing of a private placement agreement totaling approximately US$8 million of preferred stock and warrants with Caduceus Asia Partners, L.P., an investment fund managed by OrbiMed Advisors, LLC, and Mr. Xueyun Cui, the Chairman of the Company\'s Board of Directors and the majority stockholder of the Company.
"We are extremely pleased to have OrbiMed as Kun Run\'s first institutional investor, marking an important milestone in our company\'s progress," stated Mr. Cui. "We believe OrbiMed has a distinguished reputation and strong track record in healthcare fund management with a global network that enables our Company access to opportunities in the overseas pharmaceutical market. We believe that our company\'s strong foundation in peptides, peptide-based drugs and small molecule drugs, along with OrbiMed\'s credibility in the healthcare space, will result in continued growth and return for our shareholders."
Dr. Nancy T. Chang, Chairman and Senior Managing Director of OrbiMed\'s Caduceus Asia Partners Fund, will join the board of Kun Run in connection with this transaction. "We are enthusiastic about the Chinese pharmaceutical market and are excited to see quality companies like Kun Run emerge in this market," said Dr. Chang.
The net proceeds will primarily be used for potential acquisitions of drug products and pipeline assets and working capital needs.
The Company intends to file a Current Report on Form 8-K with the Securities and Exchange Commission today, which will include a more detailed description of the transaction.
About Kun Run Biotechnology Inc
Kun Run Biotechnology, Inc., together with its subsidiaries, engages in manufacture and sale of polypeptide medicines. It uses solid phase peptide synthesis (SPPS) and advanced purifying technology to produce various therapeutic polypeptide drugs, of which is "TP-5" most known for efficiently regulating humans\' immune systems in order to defend and cure malignant diseases. The company maintains two state-of-art manufacturing plants and possesses one of the largest peptide synthesizing capacities across Asia.