EVEREST MED (01952) signs acquisition agreement with Haisen Biotechnology, expanding its footprint in the Asia-Pacific commercial market.

On April 8, EVEREST MED (01952) announced that its Singapore wholly-owned subsidiary EverSea Medicines (Singapore) Pte. Ltd. has signed an equity purchase agreement with Hesen Biopharma (Asia) Limited to acquire all the shares of its wholly-owned subsidiary Hesen Biopharma (Singapore) Limited ("Hesen Singapore"). Through this transaction, EVEREST MED will acquire 14 mature brand products for chronic diseases in the Asia-Pacific region from Hesen Singapore, as well as a complete commercialization team. It will be able to rapidly expand its commercialization capabilities and innovative drug products that have been validated in the Chinese market to the Asia-Pacific region, completing the transition from "local validation" to "regional replication". In light of the company's full-year performance disclosure at the end of March 2025, it achieved a net profit for the first time under non-IFRS, validating its outstanding commercialization platform, establishing sustainable self-"generation" capabilities, and setting a revenue target for 2030 to exceed 15 billion yuan. This transaction is the realization of its 2030 goals and strategic deployment in the Asia-Pacific region. Industry analysis has pointed out that this transaction will enhance EVEREST MED's existing pipeline, unleashing the synergies between product portfolios and commercialization capabilities, further strengthening the company's presence and commercialization capabilities in the chronic disease field in the Asia-Pacific region, and consolidating EVEREST MED's position as the preferred partner for global innovative assets in China and the Asia-Pacific region, further expanding its business scale. According to the agreement signed by both parties, the total consideration for this transaction is 250 million US dollars (approximately 1.722 billion yuan), to be paid in three phases. The first installment is 150 million US dollars (approximately 1.033 billion yuan), accounting for 60% of the total consideration, to be paid at delivery; the second installment is 50 million US dollars (approximately 344 million yuan), accounting for 20% of the total consideration, expected to be paid in the first quarter of 2028; the third installment is 50 million US dollars (approximately 344 million yuan), accounting for 20% of the total consideration, expected to be paid in the first quarter of 2029. The 200 million yuan paid in accordance with the letter of intent can be refunded as a deposit, to be fully refunded by Hesen Biopharma (Asia) Limited within 10 business days after completion of the delivery. After the delivery is completed, Hesen Singapore will become an indirect wholly-owned subsidiary of EVEREST MED, and its financial performance will be included in the company's financial statements. From a financial perspective, Hesen Singapore achieved normalized revenue of 82.23 million US dollars (approximately 566 million yuan) in 2025, with an EBITDA (earnings before interest, taxes, depreciation, and amortization) of 27.27 million US dollars (approximately 188 million yuan), indicating that Hesen Singapore is a mature asset that can contribute revenue and profit upon completion of the acquisition. As the core target of this acquisition, Hesen Singapore mainly owns the commercialization rights to 14 brand chronic disease products in multiple countries and regions in the Asia-Pacific region, has established a commercialization platform across the Asia-Pacific region, and has a professional sales team of about 120 people serving a large and continuously growing population of chronic disease patients, providing ready-made channels and team support for EVEREST MED's Asia-Pacific market layout. This complements EVEREST MED's existing product portfolio and commercialization capabilities. In recent years, EVEREST MED has continued to deepen its strategic layout in the field of chronic diseases, focusing on key areas such as cardiovascular, renal, and metabolic (CKM) diseases in its product pipeline. It has established a leading commercialization platform for chronic disease innovative drugs in China. Its core commercial products, Nifukang, Visiplate, and Yijia, have been launched in the mainland Chinese market, and have also successively obtained new drug market approval (NDA) in other relevant regions in Asia, and entered the local reimbursement system. As part of its long-term strategy, EVEREST MED continues to evaluate pharmaceutical companies in the Asia-Pacific region for acquisition that already have a mature market position, clear growth prospects, and stable sustainable returns, in order to further strengthen its regional deployment and expand its business scale. This transaction is a continuation of this strategy, accelerating the commercialization process of its existing products in Asian markets, driving overseas revenue growth, further expanding the business footprint in the Asia-Pacific region, strengthening its global strategic layout, and helping it grow into a leading biopharmaceutical company rooted in Asia-Pacific and facing the world. In terms of market prospects, the core Asia-Pacific market population has exceeded 2 billion, with a large and continuously growing patient population, significant unmet medical needs in chronic disease management, and tremendous market potential. In the coming years, the accelerated entry of innovative drugs from China into the Asia-Pacific market will bring important development opportunities. Its advantages in clinical value, affordability, and accessibility align with local medical needs, and with the continuous improvement of regional regulations and access systems, the acceptance of Chinese innovative drugs continues to rise. Localization capabilities including registration, market access, medical affairs, and commercialization are becoming key factors in establishing a foothold in this market. The management of EVEREST MED has previously stated that the demand for Chinese innovative drugs in Southeast Asia is increasing, and Chinese innovative pharmaceutical companies have a clear price advantage when competing with multinational companies, which can improve drug accessibility. They are also not inferior in terms of efficacy and safety, and in some cases, they perform even better. Therefore, EVEREST MED is committed to becoming a pioneer for Chinese innovative pharmaceutical companies to enter the Asia-Pacific market and compete with international giants. Through this acquisition, the company can strategically position itself in emerging markets and Asia, expecting to achieve over 100 million US dollars in revenue in the Asia-Pacific market by 2027, and maintain rapid growth in the following three to four years. In the industry's view, the value of this acquisition will be gradually released in stages. In the short term, acquiring Hesen Singapore, with its stable cash flow and extensive mature commercialization platform, can directly bring immediate revenue and profit contributions to EVEREST MED, optimizing its financial statements; in the medium term, it will further enrich the company's product pipeline, synergize with its existing product portfolio and commercialization capabilities, strengthen the company's presence and commercialization capabilities in the chronic disease field in the Asia-Pacific region; in the long term, it will build a "bridgehead" covering core markets in the Asia-Pacific region for EVEREST MED, laying the foundation for its transition from a biotech company to a globalized comprehensive biopharmaceutical company. EVEREST MED has stated that through this acquisition, it will expand its commercialization capabilities and innovative drug products that have been validated in the Chinese market to the Asia-Pacific region, strengthen its regional layout, accelerate market access and commercialization processes for existing and future products, and lay the foundation for the international expansion of subsequent innovative products.