Apeloa Pharmaceutical (000739.SZ) will enter into a long-term partnership with Andekang Biotech for CDMO projects.

Apeloa Pharmaceutical (000739.SZ) announced that the company ("Party B") has recently signed a "Strategic Cooperation Framework Agreement" with Jiaxing Andikang Biological Technology Co., Ltd. (referred to as "Andikang Biological" or "Party A"). The two parties have reached a consensus on the cooperation relationship for the development and custom production of raw materials and intermediates for innovative drugs (referred to as "CDMO projects"), forming a strategic partnership for long-term cooperation in CDMO projects. According to the agreement, the two parties will seek more long-term cooperation projects in the direction of innovative drugs based on the strategic cooperation relationship, jointly build industry competitiveness, continuously enhance the competitive advantage in the drug market, and stable supply capacity, and share benefits. Party A will prioritize Party B for the R&D and production work of CDMO projects, with Party B providing professional CDMO services to Party A. Party A will prioritize entrusting Party B with the R&D and production of CDMO projects, and permit Party B to use the technology and techniques provided by Party A based on the project agreement. Party B will strictly carry out the R&D and production of CDMO projects in accordance with Chinese laws and regulations and project agreement, assisting Party A in technological and process optimization. Party B promises that the technology and techniques received from Party A will only be used for cooperative CDMO projects and not be directly or indirectly utilized for any production and services for themselves or any third party in any way or form. The announcement states that the long-term cooperation in CDMO projects between the two parties will benefit the expansion of the company's CDMO business, further enhancing the competitiveness of the company's CDMO business.