Xin Lang Cai Jing·2025-12-16 02:04Core Viewpoint - Fosun Pharma plans to acquire Green Valley Pharmaceutical for 1.412 billion yuan, despite the latter's net assets being only 10.36 million yuan. The acquisition aims to integrate Green Valley's core product, Manzot sodium capsules, into Fosun's innovative drug pipeline for treating mild to moderate Alzheimer's disease [1][17]. Group 1: Acquisition Details - The acquisition will make Green Valley a subsidiary of Fosun Pharma, enhancing its product offerings in the central nervous system treatment area [1][11]. - The core product, Manzot sodium capsules, received conditional approval from the National Medical Products Administration in November 2019 and was included in the national medical insurance catalog in 2021 [1][17]. - Due to the expiration of the registration certificate, commercial production of the product will not resume until after November 2024, pending the completion of post-marketing confirmatory clinical trials [1][17]. Group 2: Financial Performance - In 2023, Green Valley reported revenues of 378 million yuan, with a pre-tax loss of 9.81 million yuan and a net profit of 31.48 million yuan [2][18]. - For 2024, the company expects revenues to rise to 572 million yuan, with a pre-tax profit of 70.77 million yuan and a net profit of 70.77 million yuan [2][18]. - However, in the first nine months of 2025, revenues dropped to 102 million yuan, with a pre-tax and net loss of 67.61 million yuan [3][19]. Group 3: Operational Challenges - Since May 2023, Green Valley has faced supply issues with Manzot sodium capsules, leading to reports of drug shortages and rising prices [4][20]. - The company has been under significant operational pressure, with tight cash flow reported [4][20]. - Green Valley was fined 400,000 yuan for commercial bribery related to the promotion of its drug [5][21]. Group 4: Company Overview - As of September 30, 2025, Green Valley's total assets were 806 million yuan, with total liabilities of 795 million yuan, indicating a precarious financial position [4][20]. - The company is primarily focused on cognitive health solutions and has plans to expand its product pipeline beyond Manzot sodium [1][27].