Pharmaron reveals valuation details in Biortus acquisition

Pharmaron Beijing Co., Ltd. is acquiring an 82.54% interest in Biortus for a total consideration of RMB1,346 million. This follows comprehensive valuation analysis and arm's length negotiations, aligning with the company's assessment based on P/S and P/E values and a liquidity discount for Biortus' unlisted shares. The comprehensive valuation of Biortus was determined at RMB1.5 billion.

The valuation compared Biortus to four publicly listed CRO companies in the PRC, with P/S values ranging from 2.7 to 10.5 and P/E values from 32.0 to 35.1. Biortus itself showed a P/S value of 6.2 and a P/E value of 26.0 for FY2024, with revenue of RMB240 million and net profit of RMB60 million.

The consideration also factored in Biortus' historical post-investment valuation and projected cash and bank deposit balance of no less than RMB335 million at the close of the acquisition. Differentiated consideration for each transferor aimed to account for risk, contribution, and provide a fair return for all investors.