C-MER MEDICAL (03309) announced that on May 20, 2026, its indirect wholly-owned subsidiary, Hong Kong (International) Ophthalmic Medical, entered into an investment and share transfer agreement with the target company, Beijing Zhongyin Technology Co., Ltd. The agreement involves a total investment of RMB 112.625 million to acquire approximately 10.23% of the enlarged issued share capital of Zhongyin Technology through a combination of new share subscription and acquisition of existing shares.
According to the announcement, the transaction includes Hong Kong (International) Ophthalmic Medical subscribing to 653,700 new shares of Zhongyin Technology, representing approximately 6.72% of the enlarged share capital, for a consideration of RMB 90 million. Additionally, it will acquire a total of 342,400 shares of Zhongyin Technology from Weidu Investment, Suzhou Jingshuo, Hetang Innovation Fund, Hehui Biotechnology, and Guangzhou Heying, representing approximately 3.51% of the enlarged share capital, for a total consideration of RMB 22.625 million.
The target company was established under Chinese law in 2016. Its founder is the renowned ophthalmic genetics expert, Professor Yang. The company primarily engages in the research and development of innovative gene therapies for ophthalmic diseases in China, targeting indications such as inherited retinal degenerations and age-related macular degeneration, which are major causes of blindness.
Currently, four of its pipelines have entered the clinical stage. These are primarily novel ophthalmic gene therapies developed using AAV vectors, targeting inherited retinal degenerative diseases for which there are currently no approved treatments, including BCD and Stargardt disease.
Its core pipeline is the BCD gene replacement therapy product, ZVS101e injection. During clinical trials, it received Breakthrough Therapy Designation from the Center for Drug Evaluation of China's National Medical Products Administration and Regenerative Medicine Advanced Therapy certification from the U.S. Food and Drug Administration.
The target company completed the Phase III registration clinical trial for ZVS101e with the NMPA in April 2026 and is currently preparing to submit the corresponding Biologics License Application, aiming to obtain approval for ZVS101e in China in the first half of 2027.
The Board of Directors believes this transaction represents an attractive strategic investment. By investing in a leading innovative enterprise in ophthalmic gene therapy, the Group has the opportunity to potentially acquire the first gene therapy in China and the second globally, following Luxturna RPE65 gene therapy. If regulatory approval is obtained, leveraging Hong Kong's "1+" mechanism, the Group expects to be able to introduce the target group's NMPA-approved first-in-class ophthalmic gene therapy into Hong Kong for registration in an accelerated manner. This highly complements the Group's strategy of providing the latest and highest quality ophthalmic treatments to patients in need.