On the 21st, TWi Biotechnology, a company listed on the Emerging Stock Market, held a board meeting and resolved to merge with DuKang Pharmaceuticals through a stock exchange method, with TWi Biotechnology as the surviving entity. The merger still requires approval from the shareholders of both companies, and TWi Biotechnology plans to hold its shareholders’ meeting on June 6, 2025, to vote on the matter. The proposed base date for the merger is set for September 30, 2025, pending regulatory approval.
According to the merger terms, TWi Biotechnology will issue new shares for the stock exchange, with a ratio of 1 share of DuKang Pharmaceuticals common stock exchanged for 1 share of TWi Biotechnology common stock. After the merger, TWi Biotechnology’s paid-in capital will increase from NT$876 million to NT$1.836 billion.
Both TWi Biotechnology and DuKang Pharmaceuticals focus on new drug development through the 505(b)(2) regulatory pathway, aiming to address unmet medical needs by modifying existing drugs or applying them to new indications in a safer and faster way. The merger will effectively integrate teams and resources, strengthen R&D capabilities, expand operational scale, and enhance the companies' core competitiveness and corporate value.
TWi Biotechnology noted that the merger is expected to generate multiple benefits, including expanding the new drug development product line, entering new disease areas, integrating clinical and regulatory resources, diversifying product development risks, and enhancing visibility in the capital markets and the company’s value.
TWi Biotechnology's core asset, AC-203, is the world’s first topical treatment for epidermolysis bullosa simplex (EBS), currently in global multi-center Phase II/III clinical trials. DuKang Pharmaceuticals focuses on the central nervous system, with its core product, NORA520, an oral prodrug of Brexanolone targeting postpartum depression (PPD) and major depressive disorder (MDD). DuKang Pharmaceuticals completed Phase I clinical trials in Taiwan and the U.S. with healthy volunteers in 2022 and is currently conducting a Phase II clinical trial for PPD treatment in the U.S.
Chen Zhiming, chairman of DuKang Pharmaceuticals and a major shareholder in both TWi Biotechnology and DuKang Pharmaceuticals, stated that both companies are small biotech firms rooted in Taiwan but with a global outlook. This merger will combine their philosophies, strategies, and resources to create a larger platform, attract international talent, strengthen R&D capabilities, and expand business scope, thus accelerating the development and commercialization of new drugs.
Wu Yijun, chairman of TWi Biotechnology, pointed out that TWi Biotechnology and DuKang Pharmaceuticals focus on rare skin diseases and high-prevalence mental health conditions, targeting indications with unmet medical needs to provide patients with safe, effective, and convenient treatments. Through this merger, the company will expand its product line, scale up operations, increase efficiency, and diversify risks, ultimately creating greater value for all shareholders.
After the merger, TWi Biotechnology will continue to advance the clinical trials and global licensing of its pipeline drugs, and the synergies from the merger are expected to gradually show, bringing greater growth momentum to the company.
Resource: 安成生技合併杜康藥業 安成資本額增加9.6億元至18.36億元
