Shanghai Henlius Biotech, Inc. (2696) released an announcement regarding the renewal of the distribution partnership with Sinopharm Group Co. Ltd. (01099). The renewed framework agreement is set to become effective from 1 January 2026 to 31 December 2028, subject to the approval of independent shareholders.

According to the announcement, Sinopharm will continue to serve as one of the distributors for Shanghai Henlius’s products, leveraging its broad pharmaceutical network across various provinces. Under the revised terms, the maximum annual transaction amounts to be received by Shanghai Henlius from Sinopharm for each of the years ending 31 December 2026, 2027, and 2028 are RMB3,870 million, RMB3,901 million, and RMB4,453 million, respectively.

The announcement noted the proposed renewal would facilitate wider access to Shanghai Henlius’s pipeline of biopharmaceutical products. Shanghai Henlius’s board considers the terms consistent with normal commercial conditions and anticipates that independent shareholders will vote on the resolution at an Extraordinary General Meeting scheduled for 31 December 2025.

The board and an independent financial adviser have both stated that the arrangement is fair and reasonable, complies with regulatory requirements, and is in the interest of shareholders. Shareholders who intend to vote at the Extraordinary General Meeting must submit necessary documentation by 23 December 2025.