Core Viewpoint - Scienture Holdings, Inc. has announced the shipment of launch quantities of Arbli (losartan potassium) Oral Suspension, marking a significant milestone for the company as it prepares for the commercial launch of this novel product aimed at treating hypertension and related conditions [1][5]. Product Overview - Arbli is the first and only FDA-approved ready-to-use oral liquid formulation of losartan in the U.S. market, designed for patients over 6 years old [2][6]. - The product is indicated for the treatment of hypertension, reduction of stroke risk in patients with hypertension and left ventricular hypertrophy, and treatment of diabetic nephropathy in certain type 2 diabetes patients [8][10]. - Arbli offers a tailored approach for patients who require or prefer a liquid option, ensuring easier and safer dosing without the need for compounding [3][4]. Market Context - Losartan is classified as an angiotensin receptor blocker (ARB) and is one of the most prescribed medications for hypertension, with total annual sales of approximately $276 million and a prescription volume of 69 million in the U.S. as of March 2025 [4]. - The global market for losartan potassium was valued at approximately $1.5 billion in sales in 2024 [4]. Company Strategy - The shipment of Arbli to the distribution center and the receipt of the first order are seen as critical milestones in Scienture's efforts to deliver the product to healthcare providers [5]. - The company emphasizes its commitment to quality by ensuring compliance with Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP) standards [5]. Product Specifications - Arbli is available in a 165 mL bottle as a peppermint-flavored suspension that does not require refrigeration and has a shelf life of 24 months when stored at room temperature [6].

PART I: FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Scienture Holdings divested legacy businesses, now focused on specialty pharma, but faces critical liquidity and a $9.8M net loss, raising going concern doubts Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $15,391 | $308,096 | | Total current assets | $856,625 | $6,305,477 | | Goodwill | $21,372,960 | $21,372,960 | | Intangible assets, net | $76,400,000 | $76,400,000 | | Total assets | $104,294,834 | $104,853,805 | | **Liabilities & Equity** | | | | Total current liabilities | $7,688,199 | $7,906,893 | | Total liabilities | $26,434,370 | $25,781,684 | | Accumulated deficit | $(48,823,543) | $(39,038,973) | | Total stockholders' equity | $77,860,464 | $79,072,121 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $0 | $18,699 | $10,258 | $18,699 | | Total operating expenses | $5,157,906 | $1,494,988 | $8,729,896 | $6,987,959 | | Net loss from continuing operations | $(6,720,573) | $(1,624,741) | $(9,784,570) | $(8,258,163) | | Net (loss) income | $(6,720,573) | $(1,833,902) | $(9,784,570) | $19,412,131 | | Basic Net loss per share (continuing ops) | $(0.48) | $(1.16) | $(0.83) | $(6.75) | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,990,704) | $(5,967,718) | | Net cash provided by investing activities | $0 | $27,431,815 | | Net cash provided by (used in) financing activities | $4,697,999 | $(13,896,011) | | **Net change in cash** | **$(292,705)** | **$7,568,086** | | Cash at end of period | $15,391 | $7,719,993 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail corporate changes, legacy divestiture, Scienture acquisition, a 'Going Concern' warning due to low cash and deficit, and significant legal proceedings - The company completed the sale of its legacy subsidiaries (IPS, Softell, and Bonum Health, Inc.) on April 30, 2025, to Tollo Health, LLC, an entity with beneficial interests held by the company's former CEO and President. The consideration was a **$5 million promissory note**, resulting in a recognized loss on disposition of **$385,528**[30](index=30&type=chunk)[34](index=34&type=chunk) - Management has expressed substantial doubt about the company's ability to continue as a going concern due to its accumulated deficit of **$48.8 million** and cash balance of only **$15,391** as of June 30, 2025. The company will need to raise additional capital to meet its funding requirements for the next 12 months[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - The company is facing two significant legal challenges: a complaint from Eat Well Investment Group seeking over **$8.5 million** in stock and other damages related to the prior Superlatus acquisition, and a complaint from Kesin Pharma Corporation seeking payment of a disputed **$1.285 million** termination fee[149](index=149&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) - Subsequent to the quarter's end, in July and August 2025, the company initiated a capital raise of up to **$3.0 million**, and as of August 6, 2025, had received approximately **$1.3 million** in proceeds from the sale of **754,716 shares** of common stock at **$1.59 per share**[163](index=163&type=chunk)[164](index=164&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A details the strategic pivot to specialty pharma, focusing on Scienture's pipeline, with critically low liquidity and surging expenses reinforcing going concern uncertainty [Company Overview and Strategy](index=36&type=section&id=Company%20Overview%20and%20Strategy) Following legacy divestiture and Scienture acquisition, the company transformed into a specialty pharmaceutical firm focused on CNS/cardiovascular diseases, advancing its pipeline including FDA-approved SCN-102 - The company has completed a strategic realignment by divesting its legacy subsidiaries (IPS, Softell, Bonum Health) to sharpen its focus on the high-growth Branded and Specialty Pharma markets through its Scienture subsidiary[178](index=178&type=chunk) - Scienture's lead product candidate, SCN-102 (Arbli), an oral liquid formulation of losartan, was approved by the FDA in March 2025. It is the first and only FDA-approved ready-to-use oral liquid losartan in the U.S. market[189](index=189&type=chunk) Scienture's Development Pipeline | Product Candidate | Description | Development Stage/Key Milestone | | :--- | :--- | :--- | | **SCN-102 (Arbli)** | Losartan Oral Suspension for hypertension | FDA approved in March 2025 | | **SCN-104** | Multi-dose DHE injection pen for migraine | Planning Phase 1 study in 2026 post-IND submission | | **SCN-106** | Potential Biosimilar (thrombolytic agent) | Completed Biosimilar Initial Advisory meeting with FDA | | **SCN-107** | Bupivacaine Long-Acting Injection for pain | Anticipates IND submission and Phase 1 study initiation in 2025 | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is precarious, with cash falling 95% to $15,391 and working capital deteriorating to a $6.8M deficit, necessitating capital raises and reinforcing going concern doubts Key Liquidity Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash | $15,391 | $308,096 | -95% | | Current Assets | $856,625 | $6,305,477 | -86% | | Current Liabilities | $7,688,199 | $7,906,893 | -3% | | Working Capital | $(6,831,574) | $(1,601,416) | -327% | - The company's primary sources of liquidity have shifted from operations and asset sales to prospective sales of equity and debt securities following the divestiture of its legacy businesses[206](index=206&type=chunk) - A 'Going Concern' warning is explicitly stated, citing the accumulated deficit of **$48.8 million**, a cash balance of only **$15,391**, and the need to raise additional capital to fund operations over the next 12 months[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Operational results reflect strategic transformation, with revenues near zero and surging operating expenses, including R&D and interest, leading to a significantly wider net loss from continuing operations Comparison of Operations for the Three Months Ended June 30, 2025 and 2024 | Line Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $0 | $18,699 | -100% | | Total operating expenses | $5,157,906 | $1,494,988 | +245% | | Research and development | $843,549 | $0 | N/A | | Interest expense | $653,493 | $4,949 | +13104% | | Net loss from continuing operations | $(6,720,573) | $(1,624,741) | +314% | Comparison of Operations for the Six Months Ended June 30, 2025 and 2024 | Line Item | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $10,258 | $18,699 | -45% | | Total operating expenses | $8,729,896 | $6,987,959 | +25% | | Research and development | $1,418,228 | $0 | N/A | | Interest expense | $1,324,277 | $103,464 | +1180% | | Net loss from continuing operations | $(9,784,570) | $(8,258,163) | +18% | - The increase in operating expenses is primarily due to the addition of personnel and R&D activities from the Scienture acquisition, which did not exist in the prior-year period. R&D expenses for Q2 2025 were **$843,549**[220](index=220&type=chunk)[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a "smaller reporting company," the company is not required to provide quantitative and qualitative disclosures about market risk - As a "smaller reporting company," Scienture Holdings, Inc. is not required to provide the information for this item[244](index=244&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[246](index=246&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[249](index=249&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in significant legal proceedings, including claims from Eat Well Investment Group and Kesin Pharma Corporation, with management acknowledging inherent litigation uncertainty - The company is subject to ongoing litigation, with details provided in Note 12 of the financial statements, which includes significant claims from Eat Well and Kesin Pharma[252](index=252&type=chunk) - Management does not currently expect pending litigation to have a material adverse effect, but notes that outcomes are uncertain and could change[251](index=251&type=chunk)[253](index=253&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the company's Form 10-K[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) In Q2 2025, the company issued 3,002,086 shares for services, and post-quarter, raised $1.3 million by selling 754,716 shares in an unregistered capital raise - In Q2 2025, the company issued **3,002,086 shares** of common stock for services, including to directors, officers, and consultants[257](index=257&type=chunk)[258](index=258&type=chunk) - Post-quarter, the company raised approximately **$1.3 million** by selling **754,716 shares** of common stock in a private placement as part of an approved capital raise of up to **$3 million**[255](index=255&type=chunk)[256](index=256&type=chunk) [Defaults Upon Senior Securities](index=53&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) None reported - The company reported no defaults upon senior securities[261](index=261&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable - The company reported no mine safety disclosures[262](index=262&type=chunk) [Other Information](index=53&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No material Form 8-K information was omitted, nor were there changes to stockholder nomination procedures or officer/director 10b5-1 trading plans - No material information was omitted from Form 8-K filings during the quarter[263](index=263&type=chunk) [Exhibits](index=54&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, material agreements, and officer certifications

Core Viewpoint - Scienture Holdings, Inc. has announced a bridge funding raise of up to $3 million, with approximately $1.2 million already secured, aimed at supporting upcoming product launches and pipeline development efforts [1][2]. Group 1: Funding Details - The bridge funding will not include any dilutive securities such as warrants or options, indicating strong investor confidence in the company's strategy [2]. - The capital raised will be allocated to support the commercial launches of products and development of the pipeline program [2]. Group 2: Management Commentary - The Executive Chairman emphasized the importance of obtaining funding on favorable terms, highlighting investor belief in the company's mission and future prospects [3]. - The Co-Chief Executive Officer expressed excitement over the recognition from sophisticated investors regarding the company's growth potential and mission [3]. Group 3: Company Overview - Scienture Holdings, Inc. operates as a holding company for pharmaceutical entities focused on developing and distributing specialty products to meet unmet market needs [1][4]. - The company, through its subsidiary Scienture, LLC, aims to provide enhanced value to patients and healthcare systems with a diverse range of therapeutic products [4].

Core Points - Scienture Holdings, Inc. has regained compliance with Nasdaq Listing Rule 5550(a)(2) as its common stock has maintained a closing bid price of $1.00 or greater for the last ten consecutive business days [1][2] - The company was previously notified on May 19, 2025, that it was not in compliance with the minimum bid price requirement and was given a compliance period of 180 calendar days to rectify the situation [2] - The leadership expressed satisfaction with the team's efforts to regain compliance and emphasized the focus on upcoming product launches, particularly the FDA-approved product Arbli [3] Company Overview - Scienture Holdings, Inc. operates as a holding company for pharmaceutical companies, aiming to provide enhanced value through the development and distribution of novel specialty products [1][4] - The company, through its subsidiary Scienture, LLC, is dedicated to addressing unmet market needs across various therapeutic areas and market segments [4]

Core Viewpoint - Scienture Holdings, Inc. has terminated its Equity Line of Credit facility to focus on the commercial launch of its first FDA-approved product, Arbli, expected in Q3 2025 [1][3][4]. Financial Decisions - The cancellation of the ELOC was effective as of May 22, 2025, and a post-effective amendment was filed to deregister 310,488 unsold shares of common stock [2]. - The management believes that this strategic decision will allow for a focus on finding more favorable financing terms to support the company's growth strategy [4]. Product Launch - Arbli is the first and only FDA-approved ready-to-use oral liquid losartan in the U.S., indicated for treating hypertension and related conditions in patients over 6 years old [3][4]. - The product is a peppermint-flavored suspension that does not require refrigeration and has a shelf life of 24 months at room temperature [5]. Company Overview - Scienture Holdings, Inc. operates through its subsidiaries, focusing on providing novel specialty pharmaceutical products to meet unmet market needs [6]. - The company aims to enhance value for patients, physicians, and caregivers through its unique product offerings [6].

Core Viewpoint - Scienture Holdings, Inc. has announced a leadership transition with Suren Ajjarapu stepping down as CEO and Chairman, to be succeeded by Dr. Shankar Hariharan and Dr. Narasimhan Mani, who are expected to drive the company forward in its next phase of growth [1][2][3]. Leadership Transition - Suren Ajjarapu has served the company for several years, leading significant growth and transformation, including the sale of the web-based market platform and the reverse merger that repositioned the company into specialty pharmaceutical product development [2][3]. - Dr. Shankar Hariharan and Dr. Narasimhan Mani have extensive experience with the company's FDA-approved assets and in the pharmaceutical industry, ensuring continuity and strategic alignment during this transition [3][4]. Future Direction - Dr. Hariharan expressed excitement about leading the company towards long-term value creation through strong science and operational agility, while Dr. Mani emphasized the importance of bringing novel therapies to market for transformative patient outcomes [4][5]. - Both leaders have a strong background in the pharmaceutical industry, with Dr. Hariharan having over 35 years of experience and Dr. Mani over 25 years, including involvement in the development and launch of notable products [4][5]. Company Overview - Scienture Holdings, Inc. focuses on providing enhanced value to patients, physicians, and caregivers through the development and commercialization of novel specialty products to meet unmet market needs [6][7]. - The company operates through its wholly owned subsidiary, Scienture, LLC, which is dedicated to developing unique specialty products across various therapeutic areas and market segments [6][7].

Core Viewpoint - Scienture Holdings, Inc. has announced the FDA listing of two patents for its product Arbli, a novel oral liquid formulation of losartan, which is expected to enhance its market position and provide statutory exclusivity under the Hatch-Waxman Act [1][2][6]. Company Overview - Scienture Holdings, Inc. is a holding company focused on developing and distributing specialty pharmaceutical products that address unmet market needs [1][13]. - The company operates through its subsidiary, Scienture, LLC, which is dedicated to bringing unique specialty products to market [13]. Product Details - Arbli is the first FDA-approved ready-to-use oral liquid formulation of losartan, designed for patients over 6 years old, and is indicated for the treatment of hypertension and related conditions [3][4][8]. - The product is available in a 165 mL bottle with a peppermint flavor, has a shelf life of 18 months at room temperature, and does not require refrigeration [7]. Market Position - The patents for Arbli cover stable liquid formulations of losartan and methods of use, reinforcing Scienture's intellectual property position [2]. - Losartan is classified as an angiotensin receptor blocker (ARB) and is one of the most prescribed medications for hypertension, with annual sales of approximately $276 million and a prescription volume of 69 million in the U.S. market as of March 2025 [5]. Regulatory Milestone - The listing of Arbli in the FDA's Orange Book is considered a significant regulatory achievement for Scienture, validating its development efforts and enhancing its commercial pathway in the U.S. market [6][2].

Financial Performance - Revenues for the three months ended March 31, 2025, were $10,258, compared to $0 in the same period of 2024, indicating a significant increase[17]. - Gross profit for Q1 2025 was $673, resulting in a gross margin of approximately 6.56%[17]. - Operating loss for the first quarter of 2025 was $3.57 million, an improvement from a loss of $5.49 million in Q1 2024[17]. - Net loss from continuing operations for Q1 2025 was $3.06 million, compared to a loss of $6.63 million in the same quarter of the previous year, showing a reduction of approximately 53.91%[17]. - For the three months ended March 31, 2025, the net loss from continuing operations was $3,063,997, a decrease of 54% compared to a net loss of $6,633,422 for the same period in 2024[1]. - The company incurred a net loss from operations of $3,063,997, a 54% improvement compared to a net loss of $6,633,422 in the same period in 2024[194]. - Net (loss) income for the three months ended March 31, 2025, was $(3,063,997), a decrease of 114% compared to net income of $21,246,033 in the same period in 2024[185]. Assets and Liabilities - Total assets increased to $106.36 million as of March 31, 2025, compared to $104.85 million at the end of 2024, reflecting a growth of approximately 1.44%[13]. - Total current liabilities decreased to $7.46 million as of March 31, 2025, from $7.91 million at the end of 2024, a decline of about 5.67%[13]. - Cash balance increased significantly to $2.05 million as of March 31, 2025, compared to $308,096 at the end of 2024, representing a growth of over 564%[13]. - The company reported an accumulated deficit of $42.10 million as of March 31, 2025, compared to $39.04 million at the end of 2024[15]. - Total stockholders' equity increased to $81.16 million as of March 31, 2025, from $79.07 million at the end of 2024, reflecting a growth of approximately 2.66%[15]. Cash Flow - Net cash used in operating activities from continuing operations was $2,956,457, significantly reduced from $9,659,231 in the prior year[1]. - The company reported a net cash provided by investing activities of $27,432,589, primarily due to proceeds from discontinued operations[1]. - Cash used in operating activities for the three months ended March 31, 2025, was $2,956,457, a decrease of 71% compared to $10,189,673 for the same period in 2024[181]. Strategic Transactions - The company plans to divest its membership interests in Integra Pharma Solutions, LLC and Bonum Health, Inc. to Tollo Health, Inc. for a total consideration of $5 million[28][31]. - The divestitures are part of a strategic realignment aimed at optimizing the company's portfolio and accelerating growth in the Branded and Specialty Pharma markets[32]. - The company anticipates using proceeds from the divestment to support high-growth commercial and strategic product development activities at Scienture, LLC[32]. - The company entered into a Membership Interest Purchase Agreement with Tollo Health, Inc. to sell all membership interests in IPS for $5 million, payable via a promissory note[153]. - Tollo has agreed to pay the company $5 million for acquiring IPS and Bonum, with a promissory note maturing on June 30, 2030[168]. Research and Development - Scienture, LLC is engaged in the research and development of branded pharmaceutical products, with a focus on addressing unmet medical needs[27]. - The Company identified product technology assets related to potential treatments for hypertension, migraine, pain, and thrombosis, which are in various phases of development[53]. - Management expects SCN-102 to achieve regulatory approval in mid-2025, with commercialization projected to begin in late 2025[93]. Debt and Financing - The company needs to raise additional capital or secure debt funding to support ongoing operations, which may not be available on favorable terms, raising substantial doubt about its ability to continue as a going concern[68]. - The company entered into a Securities Purchase Agreement to issue convertible debentures with a principal amount of up to $12,222,222, with the first tranche of $3,333,333 completed on November 25, 2024[94][95]. - The outstanding balance of the Arena debentures, net of unamortized debt discount, was $1,092,461 as of March 31, 2025[101]. - The company accrued $84,167 in interest expense related to the Arena debentures during the three months ended March 31, 2025[99]. - The NVK debt of $2,000,000, which accrues interest at 15.50%, is collateralized by the company's receivables and intellectual property[107]. Stock and Equity - The company issued 240,000 common shares for services and 2.8 million shares for cash pursuant to an equity line of commitment during the first quarter of 2025[19]. - The company recognized a net increase to additional paid-in capital of $2,691,467 from the issuance of 2,800,000 shares of common stock for gross proceeds of $4,597,999 under the ELOC Agreement[127]. - The company authorized the issuance of up to 9,211,246 shares of Series X Preferred Stock, replacing the revoked Series A Preferred Stock[113]. - In connection with the Scienture Merger, 291,536 shares of common stock and 6,826,753 shares of Series X Preferred Stock were issued[115]. Expenses - Operating expenses totaled $3,571,990, a decrease of 35% from $5,492,971 in the comparable period in 2024[185]. - Wage and salary expenses increased by 213% to $696,068, attributed to executive salary increases and the Scienture Merger[188]. - Professional fees rose by 130% to $412,850, mainly due to post-acquisition expenses related to Scienture[189]. - General and administrative expenses decreased by 71% to $1,355,948, primarily due to a reduction in the fair value of shares issued for services[191]. - Interest expense increased significantly to $670,784 from $98,515, driven by interest on Scienture's convertible debt[192]. Goodwill and Intangible Assets - The Company acquired intangible assets valued at $76,400,000 and recognized goodwill of $21,372,960 from the Scienture acquisition[48]. - As of March 31, 2025, no impairment of goodwill was recognized, indicating that the fair value of reporting units exceeded their carrying values[52]. - The Company did not record any impairment charge for the three months ended March 31, 2025 and 2024[56]. - Goodwill is tested annually for impairment and is not amortized, with management regularly reviewing operating results[49]. - The product technology assets will be amortized over their expected remaining life of 15-20 years once placed in service[54].

Core Viewpoint - Scienture Holdings, Inc. is preparing for the commercial launch of Arbli, a novel oral liquid formulation of losartan, aimed at addressing unmet needs in the hypertension treatment market, with a targeted launch date in July 2025 [1][5]. Company Overview - Scienture Holdings, Inc. operates as a holding company for pharmaceutical companies focused on developing and distributing specialty products that enhance value for patients and healthcare providers [1][12]. - Scienture, LLC, a wholly owned subsidiary, is responsible for the manufacturing and distribution of Arbli [1][12]. Product Details - Arbli is the first FDA-approved ready-to-use oral liquid formulation of losartan in the U.S., designed for patients over 6 years old, particularly for hypertension and related conditions [2][4]. - The product is available in a 165 mL bottle with a peppermint flavor, has a shelf life of 18 months at room temperature, and does not require refrigeration [6]. Market Context - Losartan, classified as an angiotensin receptor blocker (ARB), is one of the most prescribed medications for hypertension, with annual sales of approximately $292 million and a prescription volume of 68 million in the U.S. market as of December 2024 [4]. - Arbli addresses the limitations of existing losartan products, which are only available in solid forms that require compounding for liquid formulations, thus providing a safer and more convenient option for patients [3][4]. Manufacturing and Distribution - Scienture, LLC has initiated supply chain activities and partnered with Saptalis Pharmaceuticals for the manufacturing of Arbli, ensuring readiness for the planned launch [1][5]. - The company has also established agreements with strategic partners for warehousing and distribution to various wholesalers [1].

Core Viewpoint - Scienture Holdings, Inc. has announced the divestiture of its legacy Healthcare IT and Wholesale Operations subsidiaries to Tollo Health, Inc. for a total consideration of $5 million, as part of a strategic realignment to enhance operational focus and unlock long-term value [1][2]. Group 1: Strategic Realignment - The divestitures are aimed at streamlining core operations, optimizing the portfolio, and accelerating growth in the Branded and Specialty Pharma markets [2]. - Proceeds from the divestment will be used to support high-growth commercial and strategic product development activities at Scienture, LLC [2]. Group 2: Benefits of Divestiture - The divestiture allows the company to better align resources with its long-term vision, focusing on high-value business through Scienture, LLC [3]. - Simplifying the operating model is expected to lead to significant synergies, efficiencies, enhanced agility, reduced overhead, and improved overall performance [3]. - The decision is anticipated to enhance the company's ability to deliver excellent performance and build a stronger, more focused organization [3]. Group 3: Future Outlook - The streamlined structure is expected to create opportunities across operations, particularly in Sales & Marketing and Supply Chain activities for upcoming commercial product launches [3]. - The company aims to achieve key milestones across its product pipeline, positioning itself for accelerated growth, innovation, and sustainable value creation [3]. Group 4: Company Overview - Scienture Holdings, Inc. is a comprehensive pharmaceutical product company focused on providing enhanced value to patients, physicians, and caregivers through novel specialty products [4]. - Scienture, LLC consists of a highly experienced team dedicated to developing and bringing unique specialty products to market across various therapeutic areas and market segments [4].