FOSUN PHARMA recently announced that its controlling subsidiary, Fosun Pharmaceutical Industry, plans to invest approximately 414 million yuan to acquire a 20.87% equity stake in Xingyao Kunze. The investment aims to enrich the company's pipeline in the field of liver disease treatment and enhance its core competitiveness in this therapeutic area.
The transaction involves participation in Xingyao Kunze's Series B financing and the acquisition of existing shares. Specifically, Fosun Pharmaceutical Industry intends to invest about 218 million yuan to subscribe to 2.9368 million yuan of new registered capital in Xingyao Kunze, and approximately 197 million yuan to acquire 3.0865 million yuan of existing registered capital held by Fosun Pharma's associated funds, Suzhou Fund and Tianjin Fund. Upon completion of the Series B financing and share transfer, Fosun Pharmaceutical Industry is expected to hold a 20.87% stake in Xingyao Kunze.
Regarding the transaction valuation, the pre-money valuation for Xingyao Kunze's Series B financing is 1.747 billion yuan, while the valuation for the share transfer is 1.5 billion yuan. The latter is based on the pre-money valuation of the Series B financing, taking into account factors such as typical discounts for secondary share transfers.
Established in May 2021 and registered in Suzhou, Jiangsu Province, Xingyao Kunze is primarily engaged in the research and development of innovative drugs for liver diseases. Its key pipelines include the siRNA innovative drug HT-101 injection, the neutralizing antibody HT-102 injection, and the combination therapy of HT-101 and HT-102. Among these, HT-101 monotherapy and the combination of HT-101 and HT-102 have been included in the National Medical Products Administration's breakthrough therapy drug program.
FOSUN PHARMA is optimistic about the application prospects of these products. The company noted that current first-line treatments for hepatitis B mainly include nucleoside analogs and interferons, which can achieve viral suppression but have limited HBsAg clearance rates, meaning they cannot achieve functional cure. Xingyao Kunze's pipeline, particularly the combination of HT-101 and HT-102, has the potential to break through traditional treatment bottlenecks and achieve functional cure for chronic hepatitis B virus infection.
Currently, all three drugs under Xingyao Kunze's pipeline are in the clinical trial stage, indicating that the company is still in the investment phase of drug development from a commercialization perspective, with no marketed products yet. According to Xingyao Kunze's management financial statements, as of October 31, 2025, its total assets were 15.82 million yuan, with owner's equity at -1.08 million yuan and total liabilities of 16.9 million yuan. From January to October 2025, the company reported zero operating revenue and a net loss of 18.08 million yuan.
How was the valuation determined based on this financial statement? FOSUN PHARMA explained that valuation methods such as profit ratios, revenue ratios, and asset ratios are not highly applicable for evaluating companies of this type. Instead, the valuation used the enterprise value-to-research and development expenditure ratio (EV/R&D expenditure) as an analytical indicator to determine the equity value of the target company. The adjustment process for the EV/R&D multiple considered differences between Xingyao Kunze and comparable companies in terms of development stage, operational scale, R&D expenditure intensity, proportion of R&D personnel, and R&D stage.
In recent years, FOSUN PHARMA has intensified its focus on innovative drug business, planning to concentrate on core therapeutic areas such as oncology (solid tumors, hematologic malignancies), immunology and inflammation, and neurodegenerative diseases. The company aims to continuously enrich its product portfolio and expand into chronic disease areas (cardiovascular, renal, and metabolic) and rare diseases.
Regarding this investment, FOSUN PHARMA expects it to further enrich its pipeline in the liver disease treatment field and strengthen its core competitiveness in this area. However, the company also highlighted risks, noting that there is uncertainty as to whether Xingyao Kunze's pipeline will complete relevant clinical trials and obtain marketing approval.
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