CONSUN PHARMA (01681) has announced that on June 8, 2026, its wholly-owned subsidiary, Guangzhou Consun Pharmaceutical Co., Ltd., entered into an investment agreement with Shanghai Huamao Pharmaceutical Co., Ltd., a limited liability company registered in Shanghai, China, and its existing shareholders.
Under this agreement, Guangzhou Consun will make a total investment of RMB 191.4022 million through the acquisition of existing shares and a cash capital increase. Upon completion of the transaction, Guangzhou Consun will hold a 30% equity stake in the target company.
The target company will become an associate of CONSUN PHARMA, and its financial results will not be consolidated into the group's financial statements. The target company is a supplier to the group.
According to information provided by the target company, Shanghai Huamao Pharmaceutical is a biopharmaceutical company located in the Shanghai Xinzhuang Industrial Park. It is recognized as a National High-Tech Enterprise, a Shanghai Municipal "Specialized, Refined, Distinctive, and Innovative" SME, and a Science and Technology Little Giant Enterprise in Shanghai's Minhang District.
The group's investment in the target company is expected to yield several strategic benefits.
Strategic Synergy and Core Pipeline Integration
The strategic value extends beyond financial returns to a deep synergy in core pipelines. By integrating the target company's technological platforms in synthetic biology and precision fermentation, the group will achieve vertical integration from active pharmaceutical ingredients to finished dosage forms. This secures the supply chain for key products while enabling cost reduction and quality enhancement through technological empowerment.
Market Expansion and Breakthrough in Nephrology
The target company possesses strong R&D and industrial capabilities in the field of peritoneal dialysis, with quality standards that have the potential to replace imported original drugs. The group, in turn, has a leading domestic nephrology sales network. Leveraging their integrated API-formulation advantage, the parties aim to develop comprehensive solutions spanning from pre-dialysis intervention to post-dialysis management, thereby enhancing the competitiveness and market coverage of the nephrology business.
Strengthening Supply Security and Growth Potential in Women's and Children's Health
The target company is a leading domestic producer of dextran APIs, a key raw material for the group's core women's and children's health product, "Yuan Li Kang." This investment will further stabilize supply, reduce dependency risks, and utilize the target company's enzymatic lactulose technology to expand into markets for chronic constipation and differentiated pediatric formulations, broadening growth opportunities in the women's and children's health segment.
R&D and Production Capacity Sharing for Operational Efficiency
The target company's specialized API R&D facilities can undertake pilot-scale and process scale-up work for the group's innovative drugs, avoiding duplicate investments and lowering R&D costs. Concurrently, process optimization is expected to improve the yield and quality of existing products, contributing to ongoing quality enhancement and cost reduction.
Entry into High-Value Synthetic Biology Segments
The target company's synthetic biology platform enables the large-scale production of high-value bioactive ingredients. These can serve as core raw materials for the group's ventures into high-average-order-value consumer products, such as women's anti-aging and children's health supplements, empowering the group to cultivate a new performance growth curve.
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