Fosun Pharmaceutical (600196.SH) holding subsidiary plans to invest 1,412 billion yuan in Lvgu Pharmaceutical to boost the listing of manlute sodium capsules

Zhitong Finance App News, Fosun Pharmaceutical (600196.SH) announced that Fosun Pharmaceutical Industry, a holding subsidiary of the company, plans to invest a total of 1,412 billion yuan to invest in Green Valley Pharmaceuticals. The amount of additional registered capital from this subscription will be used by the target group for clinical research and daily operations. As agreed, the acquisition includes:

1. Fosun Pharmaceutical Industry plans to invest 143 million yuan in the total registered capital of the target company held by the transferee (i.e. Shiyin Investment and Shibirun Consulting).

2. Fosun Pharmaceutical Industries plans to invest 1,269 million yuan to increase the registered capital by 201 million yuan for the company that pledged the bid.

3. In addition, in order to properly handle relevant withdrawals in the underlying company's shareholding incentive plan, etc., and for the investors and founders to jointly bear the corresponding costs, it is proposed that the target company first pay the corresponding refund amount to the retiring employees, etc. within the scope of the agreement, and at the same time, the current shareholder of the target company, Shanghai Yaoqijiu (actually controlled by the founder) to transfer 86 shares held by Fosun Pharmaceutical Industry and the founder of the SPV (51% and 49% of the shares, respectively) to the founder of the target company or the lowest consideration permitted by law before the subscription settlement date 673.47 million yuan Registered capital (i.e. “phased transfer”); subsequently, the founder or his related party has the right to transfer 51% of the SPV shares held by Fosun Pharmaceutical Industry at a price equivalent to 51% of the actual cost of the withdrawal (that is, 51% of the total amount of the aforementioned withdrawal amount that the target company has previously borne).

According to the announcement, the target group's manlute sodium capsules are a treatment for mild to moderate Alzheimer's disease. According to the results of the phase III clinical trial of gannut sodium capsules in China (818 patients enrolled) published in the international journal Alzheimer's Research & Therapy (“Alzheimer's Disease Research and Treatment”) in March 2021, the drug has a clear effect on improving cognitive function in patients with mild to moderate Alzheimer's disease, especially in moderate patients.

After the acquisition is completed, the Group will continue to promote confirmatory clinical trials of the drug after marketing in an orderly manner, so that the drug can be approved by the National Drug Evaluation Department as soon as possible; in addition, the Group will also launch international multi-center clinical research on indications related to the drug in due course, with a view to benefiting more Alzheimer's patients.