Mei Ri Jing Ji Xin Wen·2025-12-15 15:33Core Viewpoint - Fosun Pharma announced a controlling acquisition of Green Valley Pharmaceutical for approximately RMB 1.412 billion, aiming to enhance its product pipeline in the treatment of Alzheimer's disease with the controversial drug, Ganluo Sodium Capsule [1][2]. Group 1: Acquisition Details - The acquisition will result in Fosun Pharma holding 53% of Green Valley's shares through its subsidiary and a special purpose vehicle (SPV) [2]. - The investment consists of three parts: RMB 143 million for existing capital, RMB 1.269 billion for new capital, and arrangements for employee stock buybacks [1][2]. - Green Valley's net profit for the first three quarters of this year was -RMB 67.61 million, indicating financial challenges [1]. Group 2: Product and Market Context - Ganluo Sodium Capsule, approved for mild to moderate Alzheimer's disease, has faced commercial production challenges due to the expiration of its registration certificate in November 2024 [1][4]. - The drug's sales had been growing steadily since its conditional approval in November 2019 and inclusion in the national medical insurance directory in 2021, with projected revenues of RMB 5.72 billion and net profits of RMB 70.77 million in 2024 [2]. - However, due to the production halt, Green Valley's revenue is expected to decline significantly, with only RMB 1.02 billion in revenue and a net loss of RMB 67.61 million reported for the first three quarters of this year [2]. Group 3: Financial and Operational Insights - As of September 30, 2025, Green Valley's total assets were RMB 806 million, with liabilities of RMB 795 million, indicating a precarious financial position [3]. - The estimated equity value of Green Valley is RMB 1.674 billion based on market valuation methods [3]. - Fosun Pharma aims to leverage this acquisition to strengthen its portfolio in neurodegenerative disease treatments, enhancing its market presence [3]. Group 4: Regulatory and Clinical Trial Challenges - Ganluo Sodium Capsule's unique mechanism of action has been met with skepticism, complicating its clinical validation process [4]. - Regulatory challenges have arisen due to the failure to complete post-marketing confirmatory clinical trials, which are necessary for the drug's continued approval [4]. - Fosun Pharma plans to advance these clinical trials post-acquisition to secure necessary approvals and potentially initiate international multi-center studies [4].