On April 8, EVEREST MED (01952) announced that its wholly-owned Singapore subsidiary, EverSea Medicines (Singapore) Pte. Ltd., has entered into a share purchase agreement with Hisun Biopharmaceutical (Asia) Ltd. to acquire the entire equity interest in the latter's wholly-owned subsidiary, Hisun Biopharmaceutical (Singapore) Pte. Ltd. (referred to as "Hisun Singapore"). Through this transaction, EVEREST MED will gain access to Hisun Singapore's portfolio of 14 established chronic disease brand products and a complete commercial team across the Asia-Pacific region. This enables EVEREST MED to rapidly extend its proven commercialization capabilities and innovative drug products from the Chinese market to the Asia-Pacific area, achieving a transition from "local validation" to "regional replication."

Considering the company's full-year 2025 results disclosed at the end of March, which showed a first-time profit turnaround on a non-IFRS basis, this transaction validates its exceptional commercial platform and establishes sustainable self-generating capabilities. The company has set a clear revenue target of exceeding RMB 15 billion by 2030, and this acquisition represents a strategic move towards fulfilling that goal and completing its Asia-Pacific layout.

Industry analysis indicates that the deal will supplement EVEREST MED's existing pipeline, unleashing synergistic effects between the product portfolio and commercialization capabilities. It will further strengthen the company's presence and commercial strength in the chronic disease sector within the Asia-Pacific region, consolidating EVEREST MED's leading position as the preferred partner for global innovative assets in China and Asia-Pacific, thereby expanding its business scale.

According to the signed agreement, the total consideration for the transaction is USD 250 million (approximately RMB 1.722 billion), payable in three installments. The initial payment of USD 150 million (approximately RMB 1.033 billion), representing 60% of the total consideration, is due upon closing. The second installment of USD 50 million (approximately RMB 344 million), or 20% of the total, is expected to be paid in the first quarter of 2028. The third installment, also USD 50 million (approximately RMB 344 million), representing the remaining 20%, is scheduled for payment in the first quarter of 2029. A previously paid refundable deposit of RMB 200 million under a letter of intent will be fully refunded by Hisun Biopharmaceutical (Asia) Ltd. within ten business days after closing.

Upon completion, Hisun Singapore will become an indirect wholly-owned subsidiary of EVEREST MED, and its financial performance will be consolidated into the company's statements. Financially, Hisun Singapore achieved normalized revenue of USD 82.23 million (approximately RMB 566 million) in 2025, with an EBITDA of USD 27.27 million (approximately RMB 188 million), indicating it is a mature asset capable of contributing revenue and profit immediately post-acquisition.

As the core asset of this acquisition, Hisun Singapore holds commercial rights to 14 branded chronic disease products across multiple countries and regions in Asia-Pacific. It has established a pan-Asia-Pacific commercial platform supported by a professional sales team of approximately 120 members, serving a large and growing patient population with chronic diseases. This provides EVEREST MED with ready-made channels and team support for its Asia-Pacific market expansion, complementing its existing product portfolio and commercialization capabilities.

In recent years, EVEREST MED has consistently deepened its strategic focus on the chronic disease sector, with its product pipeline emphasizing core therapeutic areas such as cardiovascular, renal, and metabolic diseases. The company has built a leading commercial platform for innovative chronic disease drugs in China. Its key commercial products, including Nefecon, Velsipity, and Efinopegdutide, are not only launched in mainland China but have also received New Drug Application approvals in other Asian regions and been incorporated into local reimbursement systems.

As part of its long-term strategy, EVEREST MED continuously evaluates acquisitions of pharmaceutical companies in Asia-Pacific with established market positions, clear growth prospects, and stable, sustainable returns to further strengthen its regional presence and expand its business scale. This transaction is a continuation of that strategy, accelerating the commercialization of its existing products in Asian markets, driving overseas revenue growth, and further expanding its Asia-Pacific business footprint. It reinforces the company's global strategic layout, supporting its evolution into a leading biopharmaceutical enterprise rooted in Asia-Pacific with a global outlook.

From a market perspective, the core Asia-Pacific region has a population exceeding 2 billion, featuring a vast and growing patient population with significant unmet medical needs in chronic disease management, indicating substantial market potential. In the coming years, there will be significant development opportunities for Chinese innovative drugs entering the Asia-Pacific market. Their advantages in clinical value, affordability, and accessibility align well with local healthcare needs. Coupled with continuous improvements in regional regulatory and access systems and increasing recognition of innovative therapies, the acceptance of Chinese innovative drugs is rising. Localized operational capabilities, including registration, market access, medical affairs, and commercialization, are becoming key to establishing a foothold in this market.

EVEREST MED's management has previously stated that demand for Chinese innovative drugs in Southeast Asia is growing. Chinese innovative drug companies possess distinct price advantages when competing with multinational corporations, enhancing drug accessibility while demonstrating comparable or even superior efficacy and safety. Therefore, EVEREST MED is committed to being a pioneer for Chinese innovative drug companies entering the Asia-Pacific market and competing with international giants. Through this acquisition, the company aims to achieve strategic positioning in emerging and Asian markets, anticipating revenue exceeding USD 100 million from the Asia-Pacific market by 2027, with sustained rapid growth expected in the subsequent three to four years.

From an industry perspective, the value of this acquisition will be released in phases. In the short term, acquiring Hisun Singapore's mature commercial platform, which generates stable cash flow and has extensive coverage, will provide immediate revenue and profit contributions to EVEREST MED, optimizing its financial statements. In the medium term, it will further enrich the company's product pipeline, creating synergies with existing products and commercialization capabilities, thereby strengthening its position in the Asia-Pacific chronic disease sector. Long-term, it establishes a "bridgehead" covering core Asia-Pacific markets for EVEREST MED, laying a commercial foundation for its transformation from a biotech company into a global integrated biopharmaceutical enterprise.

EVEREST MED stated that this acquisition will allow the company to extend its proven commercialization capabilities and innovative drug products from China to the Asia-Pacific region, strengthening its regional layout. It will accelerate market access and commercialization for both current and future products, while laying the groundwork for the subsequent international expansion of innovative products.