Chinese drug maker investing $42M in Nabsys, report says

A REPORT from China Money Network said that a Chinese drug manufacturer is investing $42 million in Nabsys.
A REPORT from China Money Network said that a Chinese drug manufacturer is investing $42 million in Nabsys.

PROVIDENCE – A Chinese drug manufacturer is investing $42 million in Nabsys, which recently completed a financial restructuring that allowed it to reopen in March after being out of business for nearly seven months.
The investment was reported Friday by China Money Network, a media company that follows news about the alternative investment industry in Greater China.
The report said that Jilin Zixin Pharmaceutical Industrial Co. Ltd. has agreed to invest $42 million in Nabsys 2.0, a U.S. high-definition genome mapping firm.
It stated that Jilin Zixin plans to initially invest $6 million, or its equivalent in Chinese currency, then contribute approximately $36 million, or its equivalent in Chinese currency, to acquire 67 percent of Nabsys 2.0.
That pegs the U.S. firm’s value at $63 million, according to the report.

Nabsys previously raised $50 million to develop the company’s high-definition electronic DNA mapping platform. Management succession issues, a new and ultimately unsuccessful technical approach, paired with difficulty raising capital, contributed to its demise last year.
In a phone interview in March, founding CEO Dr. Barrett Bready announced his return to the genomics company and its reopening, saying it was re-focusing on its core technology. Bready served as CEO of Nabsys from 2005-2014.
China Money Network also reported that Bready, who could not be reached immediately for comment, reportedly bought the firm back for $500,000.
“The investment will help our company further develop our genome mapping capabilities and internationalize our research efforts,” China Money Network quoted Nabsys as saying about Jilin Zixin’s investment.
The company is operating as Nabsys, but its official name is Nabsys 2.0 LLC.

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