Crystal Pacific (00575) has collected a net milestone payment of US$4.5 million from Fosun

According to Zhitong Finance App News, Li Jing Pacific (00575) issued an announcement. On August 31, 2026, according to the licensing and cooperation arrangement between the Group and Fosun Wanbang (Jiangsu) Pharmaceutical Group Co., Ltd. (Fosun) in China, the Group has collected a net milestone amount of 4.5 million US dollars from Fosun after deducting China's withholding tax, further demonstrating the continued strength and value of this strategic partnership.™

The Board of Directors hereby provides further updates to the Company's shareholders and potential investors. The Group looks forward to Fosun commercializing Senstend™ in China, which is expected to further unlock significant value for the Group. After the relevant initial commercialization, the Group will have the right to collect another amount of US$1.8 million after deducting China's withholding tax. Thereafter, the Group will collect continued patent royalties and commercial milestone payments. According to the terms of the arrangement reached with Fosun, it will bring considerable further economic benefits to the Group. Details are as follows:

After the initial commercial sale, if the annual net sales threshold is reached, an additional total of up to 25 million US dollars will be obtained, bringing considerable additional revenue opportunities to the Group; and an attractive low to medium ten-digit percentage royalties calculated based on net sales will bring the Group a significant and long-term stable source of patent royalty revenue throughout the life cycle of the products in the Chinese market. However, if generic drugs have successfully entered the Chinese market and have an impact on the market, a lower payment structure will be applied under specific circumstances.

Senstend™ has the potential to help a large number of patients in China. It is expected to benefit about 9 million patients in the first year of marketing, and will increase to more than 170 million patients in the 10th year, highlighting the scale of business opportunities brought to the Group by this market.

The Board of Directors is encouraged by this progress and believes that this represents an important and positive step in the Group's strategy to monetize its Senstend™ assets in China (one of the world's largest pharmaceutical markets). As the commercialization process progresses, the Group is expected to derive significant additional value from future patent royalties and milestone payments.