Recently, Fosun Pharma announced that its subsidiary, Fosun Kairui, along with its direct holding company, Fosun Pharma Industry, signed a "Capital Increase Agreement" with the Shenzhen Biomedical Industry Fund. The Shenzhen Biomedical Industry Fund intends to participate in Fosun Kairui's Series A financing, planning to invest a total of 600 million Yuan in installments, with a subscription for up to 524 million Yuan of the new registered capital of Fosun Kairui. According to the announcement, the pre-investment valuation for this Series A financing of Fosun Kairui is set at 2.2 billion Yuan. The funds raised will be utilized to support the operations and business development of Fosun Kairui and/or its subsidiaries, further expanding its innovative pipeline and enhancing its technical and product reserves.
Fosun Kairui was established in April 2017 and primarily focuses on the research and development, manufacturing, and commercialization of cell therapy products. Its product, Aikunsai Injection, is the first CAR-T cell therapy product approved for market in China and has so far received approval for two indications, targeting patients with second-line, third-line, or higher-grade large B-cell lymphoma. The third indication for Aikunsai, aimed at treating non-Hodgkin lymphoma, is currently undergoing bridging clinical trials in China and has been included in the breakthrough therapy designation program.
On September 24, the drug registration application for Fosun Kairui's second CAR-T product, Burikialunsai Injection (FKC889), was accepted, with the indicated use being for the treatment of acute lymphoblastic leukemia. Notably, the Shenzhen Biomedical Industry Fund, the main investor in this Series A financing, has a deep-rooted relationship with Fosun Pharma since its inception. Established in March 2024, the fund was jointly set up with contributions from the Shenzhen Guiding Fund Investment Co., Ltd., Ping Shan District Guiding Fund, Fosun Pharma (Shenzhen), and several district-level industrial fund companies. The Shenzhen Biomedical Industry Fund has a recognized subscribed asset share of 5 billion Yuan, with the Shenzhen Guiding Fund Investment Co., Ltd. holding 50% and Fosun Pharma (Shenzhen) holding 28.6%.
Simultaneously, several directors and senior executives of Fosun Pharma also serve as members of the investment committee for the Shenzhen Biomedical Industry Fund, making the fund a related party of Fosun Pharma. The announcement indicates that after the completion of this financing round, Fosun Kairui's equity structure will change, with Fosun Pharma's share decreasing from 88.14% to 69.50%. The Shenzhen Biomedical Industry Fund will hold 21.03% of the shares, becoming the second-largest shareholder after Fosun Pharma.
The incremental capital increase will be completed in three phases: the first phase involves a payment of 300 million Yuan, followed by subsequent payments of 200 million and 100 million Yuan respectively. Payment milestones will be linked to specific milestones of Fosun Kairui, such as progress in establishing the Aikunsai integrated factory and achieving relevant clinical and registration advancements in its cell therapy product pipeline. Additionally, after the completion of this capital increase, Fosun Kairui's board of directors will consist of seven members, with Fosun Pharma entitled to nominate six members, the Shenzhen Biomedical Industry Fund entitled to nominate one, and the Ping Shan District Guiding Fund entitled to appoint one board observer.