Luye Pharma Secures RMB 1.6 Billion Strategic Investment for Shenzhen Subsidiary

On July 23, Luye Pharma Group announced that Shenzhen Luye had received strategic investment of up to RMB 1.6 billion from Shenzhen Luye Private Equity Investment Fund.

Nanjing Luye, a wholly-owned subsidiary of Luye Pharma, has built leading technological advantages and industrial standing in the field of oncology through years of independent R&D and strategic commercialization layout. It possesses a portfolio of products with high clinical value and differentiated features, with key assets including Lipusu®, Tiandixin®, Tiandida®, and Zepzelca®. As its product matrix continues to expand, the Group has established Shenzhen Luye based on the assets of Nanjing Luye to better integrate industrial resources, unlock asset value, and drive business expansion and strategic upgrading for Shenzhen Luye.

The innovative pharmaceutical industry is one of the key sectors prioritized by the Shenzhen Municipal Government in recent years. Through a series of supportive policies, the Shenzhen government has deeply integrated industry leaders with financial capital, injecting strong momentum into the high-quality development of the local innovative pharmaceutical sector. With the support of industrial funds, the establishment and development of Luye Pharma (Shenzhen) will also launch a new engine for the Group’s business growth.

This investment will yield multifaceted positive impacts, accelerating Luye Pharma (Shenzhen) into a phase of high-quality growth. The infusion will provide the Group with more ample cash flow, significantly improving its financial structure and enhancing profitability. In terms of R&D innovation, by strengthening technical innovation collaborations and introducing high-caliber local R&D talent, the company will focus on source innovation to upgrade its innovative drug portfolio toward “best-in-class” and “first-in-class” status. Furthermore, the Group will leverage its platform advantages and resources to actively drive the transformation toward new marketing models in the Greater Bay Area and across China. This will support business development for Luye Pharma (Shenzhen) across market access, medical affairs, market access, and sales functions, thereby strengthening its competitive edge in the market.

The manager of Shenzhen Luye Private Equity Investment Fund is Shenzhen Capital Holdings Co., Ltd., which is wholly owned by Shenzhen Investment Holdings Co., Ltd., with the State-owned Assets Supervision and Administration Commission of Shenzhen Municipal People's Government as its ultimate beneficial owner.

Luye Pharma Group’s management stated, “This strategic investment aligns perfectly with the Group’s business strategy. It reflects investors’ full recognition of the Group’s R&D capabilities and market value, and marks a significant milestone in the strong partnership and collaborative development between both parties. The investment will actively help the Group enhance the quality and efficiency of its assets, achieve high-quality growth, better serve patients, and create greater value for shareholders.”