Fosun Pharma to Fully Acquire Fosun Kite with $27M Buyout and $10M Capital Injection

Gelonghui September 13 | Fosun Pharmaceutical announced that its holding subsidiary, Fosun Pharmaceutical Industry, has jointly signed the "Equity Transfer Agreement" with Kite Pharma and Fosun Kite. Fosun Pharmaceutical Industry plans to acquire a 50% stake in Fosun Kite held by Kite Pharma for a cash consideration of US$27 million. Upon completion of this transfer, Fosun Pharmaceutical Industry will become the sole shareholder of Fosun Kite and plans to make an additional capital injection of US$10 million or equivalent RMB into Fosun Kite. The proceeds from the capital increase will be used to support Fosun Kite's subsequent product development and operations. Fosun Kite has reached an "Amended and Restated License Agreement" with Kite Pharma, under which Fosun Kite is granted an exclusive license by Kite Pharma to develop, manufacture, and commercialize Axi-Cel (i.e., Fosun Kite’s marketed product “Yikaida”) and Brexu-Cel (i.e., Fosun Kite’s R&D project FKC889) within the territory (i.e., mainland China, Hong Kong, and Macao) and the field (cancer treatment), as well as use the agreed proprietary technology for commercial purposes.