Fosun Pharma and Kite Pharma to Inject Additional Capital into Fosun Kite on a Pro Rata Basis

Intelligent Finance APP, Fosun Pharmaceutical (02196) announced that on July 19, 2024, its controlled subsidiary, Fosun Pharmaceutical Industry, entered into an "Agreement on Debt-to-Equity Conversion and Capital Increase" with Kite Pharma and Fosun Kite. Fosun Pharmaceutical Industry and Kite Pharma intend to convert their respective existing claims of USD 28.5 million against the joint venture, Fosun Kite, into equity for a proportional capital increase in Fosun Kite. Among this, the principal amount of the existing claims of USD 28.5 million held by Fosun Pharmaceutical Industry and Kite Pharma against Fosun Kite will both be converted into additional registered capital of USD 28.5 million for Fosun Kite.

Upon the completion of this capital increase, the registered capital of Fosun Kite will increase from US$214 million to US$271 million. The shareholding percentages of Fosun Pharmaceutical Industry and Kite Pharma in Fosun Kite will remain unchanged (both still at 50%), and Fosun Kite will remain a joint venture of the group.

Fosun Kite Biotechnology Co., Ltd. mainly engages in the research and development, production, and commercialization of tumor immunotherapy cell treatment products. The proceeds from this capital increase will be primarily used for the commercialization of Fosun Kite's products and investment in its R&D pipeline.