Tongyuankang Pharmaceutical-B (02410) joined hands with Qilu to promote the development, production and commercialization of the new drug TY-9591, the latter invested 400 million yuan in strategic shareholding

According to Zhitong Finance App News, Tongyuankang Pharmaceutical-B (02410) announced that on July 21, 2026 (after the transaction period), the company reached a licensing and cooperation agreement and supply and commercialization agreement with Qilu or its designated related party to cooperate in the development, production and commercialization of TY-9591 cooperative APIs (i.e. TY-9591 APIs) in China, with the aim of promoting the development, production and commercialization of innovative drugs. According to the license and cooperation agreement, the company will collect a total down payment of approximately RMB 700 million, including proceeds under the subscription agreement of approximately RMB 400 million, and a cumulative total of up to RMB 2.06 billion in milestone payments relating to TY-9591's regulatory approval and expansion of indications.

In addition to licensing and cooperation, the subscribing party has agreed to invest in the company by subscribing for H shares. A total of approximately 63.2227 million H shares will be issued to the subscribing party at the subscription price of HK$7.30 per subscribed share, with a total cash cost of approximately RMB 400 million or its equivalent in USD/HKD. The subscription price is approximately 13.30% off from the closing price of HK$8.42 per H share as reported on the Stock Exchange on July 21, 2026 (the last trading day). The subscriber is a wholly-owned subsidiary of Qilu and is Qilu's investment holding platform. After the transaction was completed, Qilu Pharmaceutical held 14.26% of the shares.

The company believes that the proposed strategic cooperation between the company and Qilu under the license and cooperation agreement will bring long-term benefits and higher R&D capital benefits to the company. The directors believe that the strategic cooperation with Qilu will further advance the drug development, production and commercialization process. The company believes that licensing and cooperation agreements, as well as supply and commercialization agreements, will help the company establish a long-term stable relationship with a reputable pharmaceutical company in China and promote commercialization of the company's products in designated regions. The move is an important step for the company to reach its commercialization milestone through the use of Qilu's expertise and network.

Proceeds from the subscription will provide additional capital support to the company and will be used for the company's overall business operations. The net subscription proceeds were approximately HK$460 million, about 50% for phase II and phase III clinical trials of TY-0540 monotherapy for platinum-resistant ovarian cancer; 40% for phase II and phase III clinical trials of TY-0540 combined with fluvizil to treat CDK4/6 resistant breast cancer; and approximately 10% for working capital and general corporate purposes.