Blackstone and YiChang HEC ChangJiang Pharmaceutical Co., Ltd (HEC Pharm) have completed the subscription by funds affiliated with Blackstone for US$400 million of 7-year convertible bonds issued by HEC Pharm.

HEC Pharm intends to use the convertible bonds' net proceeds to acquire pharmaceutical products, increase production capacity, and expand sales and distribution network to support product offering expansion and diversification, as well as market share increase.

Through convertible bonds issuance, HEC Pharm is introducing Blackstone as a long-term strategic investor to support the company’s ambition in becoming a leading company in China’s pharmaceutical industry. Blackstone is one of the world’s largest investors with extensive resources and experience in the healthcare sector.

As a long-term strategic investor, Blackstone will support HEC Pharm to optimize development strategy and operations, to expand and diversify the drug portfolio, to identify international cooperation opportunities, and to improve corporate governance and investor relations.

Representatives from funds affiliated with Blackstone will join the board of HEC Pharm, as well as the Strategic Operating Committee and the Drug Acquisition Committee of HEC Pharm. Funds affiliated with Blackstone and the controlling shareholder of HEC Pharm will also jointly nominate one independent non- executive director of HEC Pharm.

HEC Pharm is a pharmaceutical manufacturing company that focuses on the R&D, manufacturing and sale of pharmaceutical products in the therapeutic areas of anti-virus, endocrine diseases, cardiovascular and antineoplastic diseases.