Shandong Xinhua Pharmaceutical (HKG:0719) has terminated an equity acquisition intention agreement with NovoSana (Europe) after the parties failed to reach consensus on the terms of a formal agreement, according to a Friday Hong Kong bourse filing.

The agreement, announced in December 2024, contemplated a potential acquisition of up to 75% equity interest in NovoSana (Taicang), which would have become a holding subsidiary of the company upon completion.

The proposed transaction was intended to support Shandong Xinhua's expansion into the fish oil sector.

Shandong Xinhua said the termination will not affect its current production or operations and will not have any adverse impact on the company's development or shareholders' interests.