Betta Pharmaceuticals Co.,Ltd. (300558.SZ) announced the completion of an equity transfer transaction with Garden Group Co., Ltd. ("Garden Group"). The company invested 50 million yuan to acquire a 2 million yuan registered capital stake in Hangzhou Zhixing Pharmaceutical Co., Ltd. ("Zhixing Pharmaceutical") previously held by Garden Group, resulting in a post-investment ownership of 20%.

The company stated that Zhixing Pharmaceutical specializes in the development of high-end inhalation formulations, boasting a core technical team with profound industry experience. It has established a comprehensive R&D and production system, possessing the capability to transition products from the laboratory stage to full-scale industrialization.

Inhalation formulations refer to drug products that utilize inhalation devices to deliver medication into the respiratory tract for local or systemic therapeutic effects. They represent a high-tech barrier product combining drug and device, primarily targeting the clinical treatment of respiratory diseases and other potential application areas.

These formulations offer advantages such as convenient administration, rapid onset of action, and avoidance of the liver's first-pass effect. They are recommended as the preferred treatment for asthma and chronic obstructive pulmonary disease (COPD) in relevant domestic and international guidelines and are gradually expanding into areas like vaccines and central nervous system disorders.

Leveraging their organ-targeting precision and dosing flexibility, inhalation formulations also provide new avenues for exploration and application in the field of oncology treatment, such as for lung cancer.

This investment in Zhixing Pharmaceuticals allows Betta to strategically position itself in the high-end inhalation formulation sector, aligning with the company's long-term development strategy. The two parties will engage in deep collaboration centered on innovative R&D and technology platforms.