Fosun Pharma addresses inquiry on GV-971 investment

Fosun Pharma plans to invest 1.412 billion yuan to acquire a controlling stake in Green Valley Pharmaceutical, an innovative drug company specializing in neurological degenerative diseases. The primary asset, GV-971 capsules for Alzheimer's disease, received conditional market approval in November 2019, with its registration certificate expiring in November 2024. Re-commercialization requires the completion of ongoing post-marketing confirmatory clinical trials and regulatory approval, which presents uncertainties regarding trial completion and market re-entry.

Sales of GV-971 have been suspended since November 2024 due to the expiring approval. Green Valley’s unaudited financial data for the first nine months of 2025 shows total assets of 806 million yuan, total liabilities of 795 million yuan, and a net loss of 67.61 million yuan. The acquisition valuation of 1.674 billion yuan for Green Valley is considered fair given the drug's historical R&D investment of 2.034 billion yuan and its potential market value.

Fosun Pharma will implement risk control measures, including staggered payment of the acquisition funds, a re-negotiated clinical trial design to extend the double-blind period from 36 to 48 weeks and increase the sample size to 1,950 patients. Green Valley’s founding shareholders committed to provide compensation for any pre-transaction liabilities or losses. Fosun Pharma aims to integrate Green Valley’s R&D, manufacturing, and sales capabilities into its existing nervous system product portfolio.