Yipinhong faces intellectual property lawsuit seeking 528m yuan

Yipinhong Pharmaceutical Group Co., Ltd. and its subsidiaries, including Guangzhou Yipinhong Pharmaceutical Co., Ltd., are defendants in an intellectual property dispute initiated by Huiyou International Co., Ltd. The lawsuit, filed with the Guangdong Provincial High People's Court, seeks 528 million yuan in economic damages and 600,000 yuan in reasonable legal expenses, totaling 528.6 million yuan.

The dispute centers on "A preparation method for prostaglandin E1 liposome" invention patent (patent number ZL200510110924.8) and related technical secrets. Huiyou International alleges that "A kind of prostaglandin E1 injection preparation and its preparation method" invention patent (patent number ZL2016100238199) belongs to them and seeks to stop infringement of the aforementioned patents and technical secrets.

Yipinhong's legal counsel assesses that, based on a 2014 cooperation agreement, Huiyou International transferred the relevant intellectual property to Pinrui Medicine and Yipinhong has rights to use it, having already paid 15 million yuan. Therefore, Yipinhong's lawyers believe Huiyou International lacks standing to sue and their claims should be dismissed. As of the disclosure date, the case has been filed but not yet heard, making it difficult to assess the exact impact on the company's financial results.