Hsinchu, Taiwan, July 6th, 2022
To Eden Biologics Investors, Partners, Colleagues and Friends:
I would like to take this opportunity to inform our shareholders that our CDMO Business Unit has been acquired by Bora Pharmaceuticals Co., LTD. Bora, effective as of July 1, 2022. Eden Biologics, Inc. [Eden] and Bora entered into a definitive agreement on May 10th, 2022, pursuant to which Eden’s CDMO assets were to be acquired by an entity wholly owned by Bora in a cash transaction valued at no less than US$50 million and up to $65 million if certain milestones are achieved after one year.
In the past six months, Eden’s Board went through a thoughtful and comprehensive process to assess Bora’s proposal with a clear focus on value creation, partnership, synergy and financial reward for maximizing the benefits to all our shareholders. The proposed transaction shall deliver a substantial cash injection to Eden, while combining Eden’s biologics CDMO business with expanded pharmaceutical CDMO capabilities. Moreover, we believe it is the best path forward for Eden’s shareholders to capture value today, given that it would take years into the future for our shareholders to be able to benefit from the opportunities of the growing CDMO business in Taiwan’s biotech industry.
Since I joined Eden on September 1st, 2021, our entire team has been focused on two businesses, namely Biosimilar Development and Biologics CDMO, fully utilizing our stateof-the-art cGMP manufacturing facility and end-to-end process development capabilities. As a result of our team efforts, the leading biosimilar, Denosumab, has entered Phase 3, closely followed by two more biosimilars in the pipeline. In addition, we were purposeful to streamline and optimize our CDMO business to achieve the highest potential for future level of revenue realization. Consequently, we received multiple offers to acquire our CDMO business before finalizing the transaction with Bora.
Since 2019, the global COVID-19 pandemic has dramatically increased the demands for biologics CDMO capacity, which has contributed to an overall acceleration in the growth of the biotech industry. Having been leading the world in CDMO business in other industries, Taiwan is well positioned to grow its biologics CDMO sector as a national initiative. Hence, it is imperative to evaluate the significant potential of this business combination, in the context of Eden’s rapidly expanding, state-of-the-art global biologics CDMO business unit to capture the unprecedented market opportunities, for developing biologics to address unmet medical needs. The synergy of the two CDMO businesses with completely complementary capabilities is obvious: Eden’s sold CDMO services for global biosimilar development will be integrated into a network of drug product manufacturing, supply chain and marketing and sales; while Bora may now enter the global biologics value chain via CDMO based in its home, Taiwan. Overall, this is a major win for both Eden and Bora, as well as for Taiwan’s biotech industry by gaining much more visibility in the world’s healthcare market. For these and other reasons, our Board approved Bora’s proposal to acquire our CDMO business unit; in our view, through this transaction Eden has obtained not only a new and expanded CDMO partner, but also an investor for our Biosimilar program. In addition, we feel that our CDMO
team will have better opportunities to explore many emerging innovations in cell and gene therapy beyond monoclonal antibody product families with the support from Bora. From a strategic perspective, Eden will now have two CDMO partners, Chime and Bora in its destined path of delivering affordable and accessible medicines, adding further strength to Eden’s position in the global Biosimilar sphere.
By joining forces with Bora, Eden has accomplished two of its three MISSION statement objectives under our corporate VISION, way ahead of the target schedule, namely:
• Offer multiple-platform Contract Development & Manufacturing of biologics and innovative drugs
• Serve as a seamless CMC partner for novel biologics development and commercial product launch and supply
However, the third, being the most challenging yet most rewarding still requires significant team efforts to achieve:
• Develop disruptive technology platforms to manufacture the highest quality and most cost-effective biologics
The differentiating aspect of Eden is ultimately applying its revolutionary process technical knowhows from high biosimilarity product development to manufacturing biosimilars on large scale for commercial supply worldwide. Most suitable for well-understood biosimilar molecules, such disruptive technology platforms would enable manufacture of the highest quality and most cost-effective biologics, rendering them most affordable and accessible. Therefore, we believe that after this strategic transaction, our Biosimilar team will be in a much better position to focus on developing such technology platforms, incorporating them appropriately in future production processes. Currently, we have more than 13 biosimilars in our pipeline portfolio, which will be expanded rapidly due to superb CMC capabilities, to deliver even greater value creation from excellence in clinical development to reach regulatory approvals.
In essence, the Bora deal is merely the first step to realize our VISION:
• Be the world-class leader enabling affordable and accessible biologics development and supply globally
Eden Biologics has emerged from ground zero to a significant position in Taiwan today over last 10 years. Given the severe challenges and changes, this would not have been possible without the support of our extraordinary teams and Board of Directors. I am very proud of our teams and inspired by the work that has been done with great passion and dedication over the years. In the future, I look forward to working with them even more closely for accomplishing our MISSION and eventually realization of our VISION.
I would like to thank our shareholders for your support over our journey to emerge as a significant global player in Biosimilar. I look forward to charging forward with your continuing support.
Chief Executive Officer and Director,
Steven Lee, Ph.D.