Zhong Guo Jing Ying Bao·2025-12-07 13:41Core Viewpoint - Shanghai Pharmaceuticals has officially terminated its cooperation agreement with Guizhou Shengnuo Biotechnology regarding the new acid suppressant project X842, based on a comprehensive assessment of the external market and overall business development plans of all parties involved [1][2]. Group 1: Termination Agreement Details - The termination agreement stipulates that Guizhou Shengnuo must return a total of 110 million yuan (approximately 15.5 million USD) in advance payment and development registration milestone fees to Shanghai Pharmaceuticals within 45 working days after signing the agreement [2]. - Guizhou Shengnuo is also required to pay a fund occupation fee at an annualized interest rate of 3% for the amount returned, calculated based on the actual days of fund occupation [2]. - The dispute resolution mechanism will follow the original agreement, applying Chinese law and submitting disputes to the China International Economic and Trade Arbitration Commission in Beijing [2]. Group 2: Market Context and Implications - The termination of the cooperation is seen as a result of significant changes in the market environment for the X842 project over the four years of collaboration, indicating that the competitive landscape for acid suppressants has become more intense [2]. - The market for proton pump inhibitors (PPIs) already has several established products, and the development progress and market acceptance of the new acid suppressants may not have met expectations [2]. - Shanghai Pharmaceuticals emphasized that the termination will not have a significant impact on its financial status or operational results, and it does not impose any additional unfavorable obligations on its subsidiary, Shanghai Shenyin [3].