REGENT PACIFIC (00575) has received a net milestone payment of $4.5 million from Fosun.

REGENT PACIFIC (00575) announced that on August 31, 2026, according to the licensing and collaboration arrangement between the group and Fosun Pharma (Jiangsu) Co., Ltd. (Fosun) regarding Senstend in China, the group has received a net milestone payment of $4.5 million from Fosun after deducting China's withholding tax, further underscoring the ongoing strength and value of this strategic partnership. The Board hereby provides shareholders and potential investors with the latest updates, as the group anticipates Fosun's commercialization of Senstend in China, which is expected to release significant value for the group. Following the relevant initial commercialization, the group will be entitled to receive another payment of $1.8 million after deducting China's withholding tax. Subsequently, the group will receive ongoing royalty fees and commercial milestone payments, which, according to the terms agreed with Fosun, will generate substantial further economic benefits for the group, specifically as follows: After the first commercial sale, if the annual net sales threshold is met, an additional total of up to $25 million can be obtained, providing the group with significant additional revenue opportunities. Additionally, an attractive tiered royalty percentage calculated on net sales, ranging from low to mid double digits, will bring considerable and long-term stable royalty income throughout the product's lifecycle in the Chinese market. However, a lower payment structure will apply under specific circumstances if generic drugs successfully enter the Chinese market and impact it. Senstend has the potential to benefit a large number of patients in China, with an estimated 9 million patients expected to be reached in the first year of launch, increasing to over 170 million patients by the tenth year, highlighting the enormous market opportunity for the group. The Board is greatly encouraged by these developments and believes that this represents an important and positive step in the group's strategy to monetize its Senstend asset in China (one of the largest pharmaceutical markets globally). As the commercialization process advances, the group anticipates deriving considerable additional value from future royalty fees and milestone payments.