Fosun Pharmaceutical Industry, a holding subsidiary of Fosun Pharmaceutical (02196), plans to invest a total of 1,412 billion yuan to invest in Green Valley Pharmaceuticals

Zhitong Finance App News, Fosun Pharmaceutical (02196) announced that in order to focus on unmet clinical needs, further enrich the Group's innovative product pipeline matrix in the field of central nervous system treatment, improve the market layout, and create integrated diagnosis and treatment solutions with multiple technology path collaboration, the holding subsidiary Fosun Pharmaceutical will invest a total of 141,24816.33 million yuan to invest in Green Valley Pharmaceutical, including:

Fosun Pharmaceutical Industry plans to invest 143 million yuan in the total registered capital of the target company held by the transferee (i.e. Shihin Investment, Shibirun Consulting) (i.e. “this transfer”).

Fosun Pharmaceutical Industry plans to invest 126,9.4816.33 million yuan to add 20,08673.47 million yuan in registered capital (that is, “additional registered capital added to this subscription” or “this subscription”).

In addition, in order to properly handle relevant withdrawals in arrangements such as 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. At the same time, the target company's existing shareholder, Shanghai Yaoqijiu (actually controlled by the founder) of the target company will transfer 6.786 of the SPV (51% and 49% of the shares, respectively) held by the founder of the target company or the lowest consideration permitted by law before the subscription delivery date 3.47 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 (that is, a “subsequent transfer”) 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 already borne by the target company).

Without considering other factors that may affect changes in the share structure of the target company, after the completion of this acquisition (that is, this transfer, this subscription and phased transfer), the company will hold 53% of the shares in the target company through Fosun Pharmaceutical Industry and SPV, and the target company will be included in the scope of the Group's consolidated reporting subsidiaries; if subsequent transfers are completed, the company will hold 51% of the shares in the target company through Fosun Pharmaceutical Industry, and the target company will still be the Group's consolidated reporting subsidiary.

The target group is mainly engaged in R&D, production and sales of drugs for the treatment of neurodegenerative diseases. In November 2019, the standard group's manlute sodium capsules were conditionally approved for marketing by the State Drug Administration. The approved indication was “used for mild to moderate Alzheimer's disease to improve patients' cognitive function”; in 2021, the drug was included in the national medical insurance catalogue.

Ganlut sodium capsules are a treatment for Alzheimer's disease. It is a low molecular acid oligosaccharide compound. This drug is a variety supported by major national science and technology projects. It is an innovative drug independently developed by China and has independent intellectual property rights. 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 had a clear effect on improving cognitive function in patients with mild to moderate Alzheimer's disease, especially for moderate patients.

Due to the expiration of the registration approval, the drug has not been commercially produced since November 2024. Before commercial production and sale of the drug is resumed, it is also necessary (which mainly includes) to complete confirmatory clinical trials and obtain approval from the national drug review department after completion of marketing. As of the date of this announcement, such post-marketing confirmatory clinical trials are ongoing.