Apichope Pharmaceutical Group (300723.SZ) has sold what many considered its "golden goose." On December 16, the company announced its wholly-owned subsidiary would divest its 13.45% stake in U.S.-based Arthrosi to Swedish rare disease giant SOBI. The deal includes an upfront payment of $950 million (≈¥6.713 billion) and up to $550 million in milestone payments, totaling approximately $1.5 billion (≈¥10.6 billion).
Post-transaction, Apichope will no longer hold Arthrosi shares but retains exclusive rights to commercialize the core drug AR882 (deuterated benzbromarone) in China and global manufacturing priority. The announcement triggered a stock plunge, prompting Apichope to unveil a ¥100-200 million buyback plan at ≤¥70/share (150% of 30-day average price).
The sale removes a key growth driver for Apichope, whose shares have tumbled from a 2025 peak of ¥81.4 to ¥33.42 by December 16, slashing its market cap to ¥15.096 billion. Analysts doubt AR882's China rights alone can sustain its ¥20 billion valuation.
2024 marked Apichope's first annual loss since its 2017 IPO. Revenue fell to ¥1.45 billion with a ¥567 million net loss, worsened by a ¥266 million penalty for bid-rigging violations in national drug procurement. Q1-Q3 2025 revenue dropped 34.35% YoY to ¥814 million with a ¥143 million deficit.
The divested asset—AR882—represents a next-generation URAT1 inhibitor for gout treatment, currently in Phase III trials with FDA Fast Track designation. Apichope originally acquired over 40% of Arthrosi in 2023 at a $200 million valuation. AR882's mechanism enhances uric acid excretion while improving dosing stability, with Phase II data showing sustained serum urate reduction.
However, competition looms. Japan's Eisai markets dotinurad (a modified benzbromarone) in Asia, priced at ¥198/box after China's医保 inclusion, though it faces toxicity concerns blocking Western approval. Domestic rivals include Hengrui's luzunoride (NDA filed) and Zhejiang NewElement's ABP-671 (Phase III completed).
Adding pressure, Apichope faces a ¥528.6 million IP lawsuit filed in November by Huiyou International. The company's strategic pivot now hinges on its remaining pipeline: 39 R&D projects including oral GLP-1 agonists and quadrivalent flu vaccines.
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