Gan & Lee enters into significant contracts for Brazil PDP project, with estimated value over RMB 3 billion

Gan & Lee Pharmaceuticals ("Gan & Lee", Stock Code: 603087.SH) recently announced that it has entered into a Technology Transfer and Supply Agreement with Fundação Oswaldo Cruz - Bio-Manguinhos ("FZ") and BIOMM S.A. ("BIOMM") for the Parcerias para o Desenvolvimento Produtivo (PDP) Program in Brazil.

The PDP Program is a crucial initiative within Brazil's national public health system, designed to strengthen the public healthcare infrastructure and ensure the long-term, stable supply of essential medicines. Under this program, procurement commitments from the public market under Brazil's Unified Health System are exchanged for the transfer of advanced product technologies by multinational pharmaceutical companies to local partners, thereby establishing a localized manufacturing ecosystem. In the evaluation and selection process for the Insulin Glargine PDP project, the joint proposal submitted by Gan & Lee and its partners, BIOMM and FZ, was approved by the Brazilian government, designating it as the sole authorized solution.

Concurrently, Gan & Lee signed a USD-denominated Supply Framework Agreement with BIOMM. The total value of this agreement is estimated to be no less than RMB 3 billion (inclusive of tax), with the final amount subject to actual purchase orders.

Gan & Lee stated in the announcement that the execution of these two agreements constitutes part of the company's ordinary business operations and aligns with its strategic development direction. If implemented successfully, the contracts are expected to positively impact the company's operating results for the fiscal year 2025 and subsequent years, thereby enhancing its overall profitability. However, this will not affect the independence of the company's business operations, and Gan & Lee will not become reliant on the counterparties as a result of fulfilling these contracts.