CMS announced that on February 12, 2026, the group, through its subsidiary, entered into an exclusive distribution agreement with Teikoku Pharma USA, Inc., a subsidiary of Japan's Teikoku Seiyaku Co., Ltd., for the product Lidoderm® Lidocaine Gel Patch. Under the agreement, CMS obtained exclusive distribution rights for the product within the People's Republic of China, excluding Hong Kong SAR, Macao SAR, and Taiwan. The partner is responsible for the manufacturing and supply of the product. The initial term of the agreement is ten years, commencing from the date of the product's first commercial sale in the target region, with renewals stipulated in the agreement.

Lidocaine works by blocking voltage-gated sodium channels, reducing ectopic impulses from primary afferent nerves after injury, thereby alleviating pain in patients with postherpetic neuralgia. According to related studies, lidocaine patches act quickly, with onset in ≤4 hours. In clinical studies lasting 4 to 12 weeks, approximately one-quarter to one-third of patients experienced pain reduction of ≥50%. The U.S. Food and Drug Administration approved the 5% lidocaine patch, marketed as Lidoderm®, in 1999 for treating PHN. The product was approved in the European Union under the brand name Versatis® in 2007 and gained approval in China in 2024. The use of topical lidocaine patches/patches for PHN treatment is supported by clinical practice guidelines globally.

Based on its efficacy and safety in PHN treatment, topical lidocaine patches are also recommended by relevant guidelines for managing other peripheral neuropathic pain conditions, such as diabetic peripheral neuropathic pain, and post-surgical or post-traumatic neuropathic pain. PHN is defined as pain persisting for one month or more after the healing of a herpes zoster rash and is its most common complication. It is a prevalent neuropathic pain that can be continuous or recurrent. Pain often extends beyond the original rash area, commonly affecting unilateral intercostal nerves, the trigeminal nerve, or cervical nerves. The pain varies in nature and can significantly impact sleep, mood, and daily life. Estimates suggest China has approximately 4 million PHN patients.

TPU, a subsidiary of TSC, develops innovative products in therapeutic areas including pain management, central nervous system diseases, and dermatology. TSC has a long history dating back to 1848 and is a leader in transdermal drug delivery, being one of the world's largest hydrogel patch manufacturers. TSC produces over 200 prescription and over-the-counter products sold in more than 50 countries.

This product introduction further enriches the group's portfolio. The pain management and PHN treatment market presents significant demand, while existing oral medications have limitations in localized targeting and long-term safety. Topical patches are widely recognized in China for their direct, convenient, and transdermal benefits. The product's established brand is expected to create synergies with the group's existing expert resources and marketing channels. It will also help expand new retail models and build an integrated commercial ecosystem. The addition is anticipated to positively impact the group's operating performance. The board considers the agreement fair, reasonable, and in the best interests of the company and its shareholders.