Shanghai Fosun Pharmaceutical (600196.SH) plans to acquire 50% equity of Fosun Kite to achieve consolidation and become the first in China to have a CAR-T product approved for market.

Shanghai Fosun Pharmaceutical (600196.SH) announced that on September 13, 2024, its subsidiary Shanghai Fosun Pharmaceutical Industry signed a Equity Transfer Agreement with Kite Pharma and Fosun Kite. Shanghai Fosun Pharmaceutical Industry intends to acquire 50% of Fosun Kite's equity held by Kite Pharma for $27 million in cash. On the same day, Shanghai Fosun Pharmaceutical Industry and Kite Pharma also signed a Termination Agreement for the Joint Venture Contract, which will terminate after the delivery of the underlying equity. After this transfer is completed, Shanghai Fosun Pharmaceutical Industry's stake in Fosun Kite will increase from 50% to 100%, and Fosun Kite will be included in the group's consolidated financial statements as a subsidiary. Fosun Kite is mainly engaged in the research, production, and commercialization of cell therapy products. Its first CAR-T cell therapy product, Yikaida (Aklinisab Injection), was approved for marketing in China in June 2021, becoming the first domestically approved CAR-T cell therapy product on the market. Since its establishment, Fosun Kite has introduced and promoted the first CAR-T product Yikaida to be approved for marketing in China, filling the gap in the lymphoma cell therapy field in China. In addition, Fosun Kite's second CAR-T cell therapy product, FKC889, received approval to conduct clinical trials in China for its first indication (treatment of relapsed or refractory mantle cell lymphoma in adults who have received previous second-line treatment or above) and second indication (relapsed or refractory adult precursor B-cell acute lymphoblastic leukemia, adult r/rALL) in 2022. As of the date of this announcement, these indications are in the bridging clinical trial stage in China. After the completion of this transfer, Shanghai Fosun Pharmaceutical Industry's stake in Fosun Kite will increase from 50% to 100%, and Fosun Kite will be included in the group's consolidated financial statements as a subsidiary. It will serve as the core platform for the group's cell therapy technology, focusing on the field of oncology immunotherapy, promoting CAR-T cell therapy products to benefit more patients and meet unmet clinical needs. At the same time, the group will continue to maintain a long-term strategic partnership with Kite Pharma through a licensing cooperation model.