(Yicai Global) March 13 -- Chinese biomedicine and pharmaceutical companies, including Everest Medicines and Zai Laboratory, said that the bankruptcy of US lender Silicon Valley Bank will have a limited to zero impact on their business.

Everest Medicines, Zai Lab, CANbridge Pharmaceuticals, Broncus Medical, CStone Pharmaceuticals, and Brii Biosciences released statements yesterday to reassure investors that SVB's collapse will not significantly affect their operations.

SVB, which provided banking services to nearly half of the US's venture capital-backed technology and life-science companies, was closed by the California Department of Financial Protection and Innovation on March 10, according to the lender's website, making it the largest US bank failure since the financial crisis of 2008.

Everest Medicines has less than 1 percent of its total cash in SVB and expects to recover most of it through Federal Deposit Insurance Corporation insurance and other means, the Shanghai-based firm said. About USD1 million of its capital is not covered by the FDIC, it noted.

Everest Medicines has around USD430 million in cash reserves deposited in accounts at different banks, it added, saying that it is financially healthy and has no other deposits with US banks.

Its stock [HKG: 1952] was trading up 6.5 percent at HKD16.62 (USD2.12) as of 3.41 p.m. local time in Hong Kong today.

As of Dec. 31, Zai Lab had about 2.3 percent of its USD1 billion cash and cash equivalents deposited in SVB and other financial institutions, including JPMorgan Chase, Citigroup, and Bank of China Hong Kong, according to the Shanghai-based company. It has no debt or other financing deals with the collapsed bank.

“The bankruptcy of SVB won't affect the firm's operating capabilities and capital expenditure,” Zai Lab said.

Shares of Zai Lab [HKG: 9688] were 2.2 percent lower in Hong Kong at HKD26.15 each as of 3.43 p.m. local time.

Innovent Biologics, Akeso, Ascletis Pharma, Junshi Biosciences, and Kintor Pharma told Yicai global they have never deposited any funds with SVB.

Many Chinese biomedicine companies are listed in Hong Kong and on Shanghai's Nasdaq-like Star Market rather than overseas, a pharmaceutical investor said to Yicai Global. The bankruptcy of SVB will not greatly impact these firms, the person noted.

Editor: Martin Kadiev