Core Viewpoint - Yipinhong (300723) announced the sale of its 13.45% stake in the US company Arthrosi to Swedish rare disease giant SOBI for a total value of approximately $1.5 billion (about 10.6 billion RMB), which includes an upfront payment of $950 million (about 6.71 billion RMB) and potential milestone payments of up to $550 million [1][3]. Group 1: Company Overview - Yipinhong was established in 2002 and listed on the Shenzhen Stock Exchange in November 2017, focusing on the entire pharmaceutical industry chain, primarily in pediatric and chronic disease medications [4]. - As of the end of 2024, the company holds 193 drug registration approvals, including 82 national medical insurance varieties and 39 ongoing research projects [4]. Group 2: Financial Performance - Following the announcement of the stake sale, Yipinhong's stock price fell sharply, prompting the company to announce a share buyback plan of 100 million to 200 million RMB at a price not exceeding 70 RMB per share [5]. - The company's revenue from 2021 to 2024 was 2.199 billion RMB, 2.280 billion RMB, 2.505 billion RMB, and 1.45 billion RMB, respectively, with net profits declining from 293 million RMB in 2021 to a loss of 567 million RMB in 2024 [7]. Group 3: Regulatory Issues - In July 2024, Yipinhong's subsidiary was found to have violated bidding regulations in a national drug procurement process, resulting in the cancellation of its qualification and a return of 266 million RMB in medical insurance funds [8]. Group 4: Product Development and Competition - The drug AR882, which Yipinhong retains exclusive rights to in China, is currently undergoing critical phase III clinical trials and has received FDA fast track designation [10]. - However, AR882 faces competition from other URAT1 inhibitors, including Japan's Lesinurad, which has been approved in China and is set to enter the market in 2025 [11].