LakeShore Biopharma appoints advisors to evaluate buyout proposal

Published 10/09/2025, 13:22
LakeShore Biopharma appoints advisors to evaluate buyout proposal

BEIJING - LakeShore Biopharma Co., Ltd (NASDAQ:LSB) announced Wednesday that the independent special committee of its board has retained financial and legal advisors to evaluate a non-binding acquisition proposal received on August 26. The announcement comes as the company’s stock trades at $0.84, having declined over 81% in the past year, with a current market capitalization of $34.5 million.

The biopharmaceutical company has appointed Kroll, LLC as financial advisor, Gibson, Dunn & Crutcher LLP as U.S. legal counsel, and Maples and Calder (Hong Kong) LLP as Cayman Islands legal counsel to assist with the review process.

The company cautioned shareholders that no decisions have been made regarding the proposal, and there is no guarantee that a definitive agreement will be executed or that any transaction will be approved or completed. InvestingPro analysis shows the company’s overall financial health score as WEAK, with 12 additional key insights available to subscribers.

LakeShore Biopharma, formerly known as YS Biopharma, focuses on developing vaccines and therapeutic biologics for infectious diseases and cancer. The company operates in China, Singapore, and the Philippines, utilizing its proprietary PIKA immunomodulating technology platform. Recent financial data shows revenue growth of 7.24% over the last twelve months.

The announcement comes as the special committee continues its evaluation of the preliminary non-binding proposal. The company stated it does not plan to provide further updates unless required by law.

The details of the proposal, including potential buyers and financial terms, were not disclosed in the press release statement.

In other recent news, LakeShore Biopharma has received a preliminary non-binding proposal from Oceanpine Capital to acquire all outstanding shares not already owned by the investment firm for $0.86 per share in an all-cash transaction. This proposed purchase price represents a 10.3% premium to LakeShore’s closing price on August 15 and an 11.4% premium to the average closing price over the past 15 trading days. Additionally, LakeShore Biopharma announced it has secured $15 million through a private placement agreement with an institutional investor. As part of this agreement, the company will issue and sell 16,987,542 ordinary shares at $0.883 per share, along with an equal number of warrants. Each warrant grants the investor the right to purchase one ordinary share at an exercise price of $1.079 within a 36-month period. These developments highlight significant recent activities for LakeShore Biopharma, providing investors with noteworthy updates.

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