PEGBIO CO-B (02565) has announced the signing of a strategic cooperation agreement with Shanghai Tengrui Pharmaceutical Co., Ltd. for the commercialization of its core product, Paidakang, in Mainland China. Under the arrangement, the two companies will combine their respective strengths in research and commercialization to jointly advance the market promotion and commercial deployment of the product in the region. This collaboration marks a new phase in the commercialization process of the company's flagship product.

According to the commercial plan outlined in the agreement, the partners will leverage Tengrui Pharma's nationwide commercial network and academic promotion capabilities, along with PEGBIO CO-B's expertise in product development and clinical research, to accelerate market expansion for the product in Mainland China. A key commercial target set in the agreement is the achievement of cumulative sales exceeding RMB 10 billion.

The board of directors believes that, given the product's significant clinical value and the synergistic capabilities of both parties in research and commercialization, this cooperation has the potential to unlock a market worth billions of renminbi in Mainland China, while further enhancing the product's market coverage and commercial value.

As part of the agreement, Tengrui Pharma will pay PEGBIO CO-B a total of approximately HK$140 million in rights payments. Based on the current payment schedule, these funds are expected to be paid within the current year. The board views this cooperation as a source of highly certain cash inflow that will further accelerate the commercialization of the product.

Under the terms of the collaboration, Tengrui Pharma will be responsible for exclusive commercial promotion activities for the product in Mainland China. Sales revenue generated in the region will be recognized by PEGBIO CO-B, which will retain intellectual property rights, product interests, and rights for overseas markets. The board believes that by partnering with a company possessing nationwide commercial capabilities, PEGBIO CO-B can accelerate market promotion and realize the commercial value of the product while maintaining core rights and sales revenue ownership.