Fudan Zhangjiang: Drug price adjustment is expected to lower the sales revenue of LipoSales.

On the evening of April 30, Fudan Zhangjiang announced that in 2024, the liposomal injection of doxorubicin hydrochloride was included in the national centralized procurement catalog for the first time. The execution period of this centralized procurement will be from the date of selection of the results of each variety and region's procurement to December 31, 2027. The rules of this centralized procurement and the change in market competition landscape will require adjustments to the company's sales strategy and sales price of the liposomal injection of doxorubicin hydrochloride during the execution period. The company has decided to gradually adjust the market retail price of the drug according to the rules and requirements of each province for products that were not selected, starting from May 1, 2025, lowering the price by no less than 35% compared to the previous bid price. It is expected that this price adjustment will have an adverse effect on the sales revenue of Libao Duo in the second quarter of 2025 and subsequent execution periods. Considering factors such as the price adjustment of the drug and the decrease in sales volume after not being selected in this centralized procurement, it is expected that the drug's sales revenue for the year 2025 will decrease by more than 50% year-on-year, potentially leading to the risk of single-product losses in 2025 for this drug.