PharmaGend, a joint venture company of Kangzhe Pharmaceutical in Singapore, has signed a lease agreement for the factory and property located in Tampines, Singapore, and has completed the purchase of specific production machinery and equipment.

Zhitong App News: CMS (00867) announced that on December 27, 2023, its Singapore joint venture company, PharmaGend Global Medical Services Pte. Ltd. (PharmaGend), signed a lease agreement with PERPETUAL (ASIA) LIMITED for a factory and property located in Singapore's Taisi. The factory will serve as the site for PharmaGend's drug formulation, processing, and packaging business. On December 29, 2023, PharmaGend completed the purchase of specific production machinery and equipment from Strides Pharma Global Pte. Ltd. (Strides Pharma). On the same day, PharmaGend's specific contract manufacturing (CMO) agreement and service agreement with Strides Pharma came into effect (collectively referred to as the "Singapore Production Factory Matters").

Previously, on October 20, 2023, CMS's wholly-owned subsidiary, CMS MEDICAL VENTURE PTE. LTD. (CMS Medical Venture), the company's non-wholly-owned subsidiary, Rxilient Health Pte. Ltd. (Kanglianda), Pharmaron (Hong Kong) International Limited (Kanglong Huacheng), a wholly-owned subsidiary of HEALTHY GOAL LIMITED (Junlian Fund), and Rxilient Biohub Pte. Ltd. (then a non-wholly-owned subsidiary of the company) (Rxilient Biohub) entered into a share subscription and shareholders' agreement. CMS Medical Venture, Kanglianda, Kanglong Huacheng, and Junlian Fund agreed to increase Rxilient Biohub's registered capital from USD 200,000 to USD 30 million. On December 15, 2023, the capital increase was completed, and CMS Medical Venture and Kanglianda collectively hold 45% of Rxilient Biohub's expanded registered capital. Rxilient Biohub's financial performance will no longer be consolidated into the group's consolidated financial statements and will become an associated company of the company. On December 20, 2023, Rxilient Biohub was renamed PharmaGend.

In the future, CMS Medical Venture, Kanglianda, Kanglong Huacheng, and Junlian Fund will continue their collaboration through PharmaGend to carry out customized formulation research and development and production (formulation CDMO) business in Singapore. Based on more than 30 years of global investment and M&A experience and proven commercialization capabilities, the Group adheres to the concept of openness and integration. It actively implements an internationalization strategy starting from Southeast Asia and actively lays out overseas supply chains and production capabilities. The Singapore production factory has advanced production machinery and equipment, as well as first-class infrastructure, and has obtained certifications from the Health Sciences Authority (HSA) of Singapore, the Food and Drug Administration (FDA) of the United States, and the Therapeutic Goods Administration (TGA) of Australia. This Singapore production factory will optimize the layout of the Group's overseas supply chain and production capabilities, ensuring the safety of the overseas supply chain and improving supply stability. In addition, it will also help the Group to cooperate with global partners in product development, promoting more cooperation opportunities.

The Group is gradually building an operational structure in Southeast Asia that integrates product introduction, development, production, formulation CDMO, and marketing promotion, creating an open platform that covers the core operational aspects of products. The CDMO cooperation is of great significance for the Group to accelerate its business development in Southeast Asia. The Group will collaborate with Kanglong Huacheng to leverage its rich global R&D and international CDMO operational capabilities and experience, as well as the capital market influence of Junlian Fund. With the advantages of Singapore in location, policies, laws, and talents, the Group will promote product research and development and production in the Southeast Asian market, empower biotech and pharmaceutical companies from Europe, America, Japan, and China to quickly enter the Southeast Asian market, and build a "bridgehead" for global pharmaceutical companies in Southeast Asia.