Report: Fosun Pharma considers privatizing its Hong Kong-listed subsidiary Henlius

On Monday, according to sources cited by the media, Fosun Pharma is considering privatizing Henlius, which is listed on the Hong Kong Stock Exchange.

Sources indicate that Fosun Pharma is working with an advisory firm on a potential privatization offer, and other investors may also join the transaction. Henlius is a subsidiary controlled by Fosun Pharma, with Fosun Pharma holding 53.61% of its total share capital.

Since May 23, Henlius has been suspended from trading on the Hong Kong Stock Exchange, awaiting the announcement of a merger and acquisition. Negotiations are still ongoing, and it remains to be seen whether a deal will be reached in the future.

Henlius' stock price has risen by 73% in the past 12 months, but remains well below its peak in 2020. The company currently has a market value of approximately $1.3 billion, significantly lower than its $4.2 billion market value in July 2020.

Fosun Pharma's stock was also suspended from trading on May 23 and resumed trading two days later. Over the past 12 months, Fosun Pharma's stock price has fallen by nearly 40%. Fosun Pharma is a subsidiary of Fosun International, which has been selling assets after years of global expansion.

From a trading perspective, this may be one of the measures taken by Fosun Pharma to implement its focus development strategy.

Through the privatization of Henlius, Fosun Pharma can more efficiently integrate its biotechnology assets, while for Henlius, the transaction is expected to inject new capital and development momentum.

Last year, Henlius achieved annual profit for the first time, with a net profit of 546 million yuan and revenue of 5.395 billion yuan. Henlius mainly produces drugs in the fields of tumors, autoimmune diseases, and ophthalmic diseases. As of the end of March, it has 5 products in China and 2 products sold overseas. In 2023, Henlius' 5 products are expected to generate a total sales revenue of approximately 4.5535 billion yuan, with the PD-1 tumor drug SULINIZUMAB (H drug, Hans state) generating annual revenue of 1.1198 billion yuan, a year-on-year increase of 230.2%.

It is worth mentioning that Henlius is accelerating its international expansion. In December last year, Hans state successfully landed in Indonesia, becoming the first domestically produced anti-PD-1 monoclonal antibody to be shipped overseas; recently, the rituximab biosimilar produced by Henlius (Hanquyou) was approved for listing in the United States.