Insilico Medicine Cayman TopCo (“Insilico”) has announced plans to participate in the creation of Insilico Pudong Development Value Partners (Shanghai) Private Equity Investment Fund Partnership (Limited Partnership), a proposed biopharmaceutical-focused vehicle targeting RMB1.01 billion in total commitments.

The contemplated structure involves two steps:

1. Formation of a joint venture: Insilico, through its wholly owned unit Insilico Medicine (Shanghai) Investment Co., Ltd., intends to inject RMB3.00 million for a 60% stake in a new joint venture with Shanghai Pudong Construction Co., Ltd. (listed on the Shanghai Stock Exchange, 600284) and its controlling shareholder Shanghai Pudong Development (Group) Co., Ltd. The joint venture, with registered capital of RMB5.00 million, would become an indirect non-wholly owned subsidiary consolidated into Insilico’s financial statements.

2. Capitalisation of the fund: After the joint venture’s establishment, Insilico plans to commit a combined RMB302.50 million—via Insilico Medicine Ltd. (Shanghai) and the new joint venture—into the private equity fund, alongside Value Partners Equity Investment Management (Shenzhen) Co., Ltd. (a wholly owned subsidiary of Hong Kong–listed Value Partners Group Limited, 806), Pudong Construction and other prospective investors.

Strategic rationale: Management views the initiative as consistent with Insilico’s growth strategy and an opportunity to capture value from China’s expanding biopharmaceutical and life-sciences sectors.

Status and next steps: No binding agreements have been signed. Execution of the proposed transactions will depend on definitive documentation and phased capital-commitment schedules. Should agreements be concluded, the deal is expected to qualify as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules. Investors are advised to exercise caution when dealing in Insilico shares.