Changchun High-Tech Industry (000661.SZ) subsidiary intends to acquire rights related to megestrol acetate oral suspension

Changchun High-Tech Industry (000661.SZ) announced that GENSCI Singapore, a wholly-owned subsidiary of its controlling subsidiary Jinsai Pharmaceutical, and Baosheng Pharmaceutical intend to sign an "Asset Purchase Agreement" and a "Supply Agreement." Baosheng Pharmaceutical will transfer its globally exclusive intellectual property rights (including trademarks, etc.) and marketing authorization holder (MAH) rights for megestrol acetate oral suspension (referred to as "Meishiya") in all regions worldwide except Hungary (referred to as the "Territory") to GENSCI Singapore. At the same time, GENSCI Singapore will authorize and entrust Baosheng Pharmaceutical to manufacture and supply the product on a long-term basis. Currently, the approved indications for Meishiya include: anorexia in patients with acquired immunodeficiency syndrome; and significant weight loss caused by cachexia in patients with acquired immunodeficiency syndrome and cancer patients. According to the agreement, GENSCI Singapore will pay US$30 million as the transfer amount for the intellectual property rights (including trademarks, etc.) and MAH rights exclusively related to the product in the Territory. Subsequently, milestone payments based on specific events include contingent consideration of US$40 million as part of the purchased assets and sales milestone payments of up to US$30 million.