Biotech company GenScript plans to allocate 70% of expected share placement proceeds to AI-powered automated drug discovery laboratories

Biotech company GenScript plans to allocate 70% of expected share placement proceeds to AI-powered automated drug discovery laboratories

On September 11, biotech company GenScript entered into a conditional agreement to place 77.126 million new shares at HK$30.50 per share. If fully subscribed, the company expects net proceeds of approximately HK$2.327 billion and plans to direct roughly 70% of that amount toward AI-powered automated drug discovery laboratories. Closing was expected no later than September 15, subject to the fulfillment of the transaction conditions.

AI can propose candidate molecules, potential future drugs. The laboratory then synthesizes them and tests whether they bind to a chosen biological target, for example a protein the drug is meant to act on, and what properties they exhibit. These measurements help select variants for the next round of computational design.

Automated high-throughput laboratories run such experiments in large batches. In its exchange announcement, GenScript specifies automated laboratories, equipment, upgrades to existing lab facilities, and expanded synthesis, screening, and testing capabilities.

GenScript plans to spend approximately another 20% of the net proceeds on related research, software integration of workflow stages, and international expansion of its platform. The board intends to use the raised capital to scale this infrastructure while funding the company's existing operations from current resources and operating cash flow.