Yipinhong's associate Arthrosi targeted for $950m acquisition

Yipinhong Pharmaceutical's wholly-owned subsidiary, Reichstein Biotech (HK) Co. Limited, holds a 13.45% stake in Arthrosi Therapeutics, Inc. Sobi US Holding Corp. will acquire Arthrosi for an upfront payment of $950 million, with potential additional clinical, regulatory, and sales milestone payments totaling up to $550 million. The transaction requires approval from Arthrosi shareholders, including over 50% of outstanding shares and over 75% of Series E preferred shares. Yipinhong and its affiliates are not involved in the Series E financing and do not hold Series E shares.

Simultaneously, Yipinhong Pharmaceutical announced that its traditional Chinese medicine, Qinxian Qingjie Oral Liquid, has been approved as a national Class II protected traditional Chinese medicine. This protection, valid for seven years, enhances intellectual property rights and market competitiveness in the pediatric medicine sector. The drug, used for children's upper respiratory tract infections, will be manufactured by Yipinhong Biomedical Co., Ltd.

The Arthrosi acquisition and the approval of Qinxian Qingjie Oral Liquid are expected to have a positive impact on Yipinhong Pharmaceutical. However, the finalization of the Arthrosi acquisition, including the transaction price and completion date, remains uncertain. Drug sales may also be influenced by national policies and market conditions.