Jacobson Pharma Corporation Limited (Jacobson, Stock Code: 2633) and JBM (Healthcare) Limited (JBM, Stock Code: 2161) have jointly released an announcement regarding a new 2025 Europharm License Agreement. Europharm, an indirect wholly-owned subsidiary of Jacobson, and Europharm HK, an indirect wholly-owned subsidiary of JBM, will continue a licensing arrangement for a section of a factory in Tai Po InnoPark from 1 December 2025 to 27 January 2028 at a monthly fee of HK$247,000.

According to the announcement, Europharm HK will recognize a right-of-use asset of approximately HK$6,190,000 under HKFRS 16 over the license term. An additional license agreement signed on 28 February 2025 between Europharm and LCSTH, a JBM subsidiary, is also included in the aggregated transactions. The relevant annual caps are set at HK$5,580,000 for each of the financial years ending 31 March 2026 and 31 March 2027, and HK$4,590,000 for the period ending 27 January 2028.

Mr. Sum, who serves as an executive director and chairman of JBM and also an executive director, the chairman, and chief executive officer of Jacobson, holds controlling interests in both entities. As a result, the transaction constitutes a one-off connected transaction for JBM and a continuing connected transaction for Jacobson under Chapter 14A of the Listing Rules. It is subject to reporting and announcement requirements but exempt from circular and independent shareholders’ approval.

The agreement aims to provide Europharm with rental income from unused factory space and enable Europharm HK to maintain its existing GMP-accredited manufacturing operations. Relevant internal control measures, including regular reviews by the audit committees and adherence to reporting protocols, have been implemented to ensure that the agreed terms are on normal commercial terms and in the best interests of both companies.