Core Viewpoint - Shanghai Sanyou Medical Instrument Co., Ltd. has signed a strategic cooperation and distribution agreement with CGBio Co., Ltd. to obtain exclusive distribution rights for the Novosis product in mainland China, which is expected to enhance the company's product line and competitive strength in the orthopedic biomaterials sector [2][4][20]. Agreement Overview - The agreement grants Sanyou Medical exclusive and non-transferable rights to procure, import, market, distribute, sell, promote, and conduct other commercial activities related to the Novosis product in mainland China for a period of six years, starting from the date the product receives medical device registration from the National Medical Products Administration of China [2][9][10]. Product Details - Novosis is a biomaterial product containing recombinant human bone morphogenetic protein BMP-2 and hydroxyapatite ceramic, designed for synthetic bone grafting. It is produced using genetically engineered E. coli and is packaged with a disposable syringe and needle [3][11][19]. - The product is known for its strong osteoconductive and osteoinductive properties, promoting the formation of new bone and cartilage, and is widely used in various surgical repairs, including spinal fusion and trauma [12][20]. Impact on the Company - The exclusive distribution rights for Novosis will enrich Sanyou Medical's product offerings and enhance its position in the orthopedic biomaterials market, providing comprehensive surgical solutions for patients and doctors, which is expected to positively impact the company's operations [4][20]. - Sanyou Medical is recognized as a leading company in the development, production, and sales of orthopedic implant consumables, with strong market sales channels and a rich customer base [18]. Partner Company Overview - CGBio Co., Ltd. is a South Korean company specializing in the research, production, and sales of medical device biomaterials, with significant expertise in various core technologies related to tissue regeneration and implant design [18].

Core Viewpoint - The company has signed a strategic cooperation and distribution agreement with CGBio, granting exclusive rights to distribute Novosis products in mainland China, which is expected to enhance its competitive strength in the orthopedic biomaterials sector [1][3]. Group 1: Agreement Details - The agreement was signed on December 2, 2025, and grants the company exclusive, non-transferable rights for procurement, import, marketing, distribution, sales, promotion, and other commercialization activities for Novosis products in mainland China [1]. - The authorization is valid for six years from the date the products receive medical device registration from the National Medical Products Administration of China [1]. Group 2: Product Information - Novosis is a synthetic bone graft material composed of recombinant human bone morphogenetic protein BMP-2 and hydroxyapatite ceramic, packaged with a disposable syringe and needle [2]. - The product is produced through genetic engineering from human rhBMP-2 cDNA and is designed to promote new bone formation with strong osteoconductive and osteoinductive properties [2]. - It is widely used in various surgical repair and reconstruction applications, including spinal fusion, limb trauma, and oral surgery [2]. Group 3: Strategic Impact - Acquiring exclusive distribution rights for Novosis products will enrich the company's product line and enhance its positioning in the orthopedic biomaterials market, providing comprehensive surgical solutions for patients and doctors [3]. - This move is expected to positively impact the company's operations and overall competitiveness in the industry [3].