Shanghai Pharmaceuticals Holding (601607.SH) plans to acquire a 10% stake in Shanghai Hutchison Pharma for 995 million yuan, becoming its controlling shareholder.

Shanghai Pharmaceuticals Holding (601607.SH) announced that Shanghai Hengrui Pharmaceutical Co., Ltd. (hereinafter referred to as "Shanghai Hengrui Pharmaceutical" or the "target company") was jointly established by Shanghai Pharmaceuticals Holding's wholly-owned subsidiary Shanghai Medicinal Materials Co., Ltd. (referred to as Shang Yao Medicinal Materials) and Shanghai HUTCHMED Investments (Hong Kong) Limited (referred to as HUTCHMED), with each holding a 50% stake. Shanghai Pharmaceuticals Holding plans to jointly acquire the equity of Shanghai Hengrui Pharmaceutical held by HUTCHMED with Shanghai Jinpu Health Equity Investment Management Co., Ltd. as the designated subject (referred to as Jinpu Health Designated Subject). Shanghai Pharmaceuticals Holding plans to acquire a 10% stake with its own funds of RMB 995 million (subject to the final price approved by the state-owned assets supervision and administration department). After the transaction is completed, Shanghai Pharmaceuticals Holding will cumulatively hold 60% equity of Shanghai Hengrui Pharmaceutical and consolidate it on its financial statements. It is reported that Shanghai Hengrui Pharmaceutical has built Musk Cardiotonic Pill into a cardiovascular and cerebrovascular basic drug with annual sales of nearly RMB 3 billion through a large number of evidence-based medicine and academic promotion work. Through large-scale post-marketing randomized, double-blind, placebo-controlled clinical trials, the release of a new version of the "Expert Consensus" based on international guidelines, and the publication of more than 2,800 papers in core journals, the efficacy evidence of Musk Cardiotonic Pill in clinical medicine has been effectively refined and highly recognized by clinical experts. At present, Shanghai Pharmaceuticals Holding has cardiovascular and cerebrovascular drugs with annual sales exceeding RMB 100 million, such as Guanxinning Tablet, Ginkgo Ketone Ester series, and Yangxinshi Tablet. The successful experience of Musk Cardiotonic Pill will serve as a reference for the secondary development of other traditional Chinese medicine varieties of Shanghai Pharmaceuticals Holding. After the completion of this transaction, Shanghai Hengrui Pharmaceutical will become a subsidiary within the scope of the company's consolidated financial statements. Shanghai Hengrui Pharmaceutical achieved a net profit of RMB 663 million in 2023 and RMB 573 million from January to September 2024, accounting for 12.84% and 11.40% of Shanghai Pharmaceuticals Holding's net profit for the same period, respectively.