Sino Biopharmaceutical (01177.HK) to Acquire 100% Equity of Hejiya for Up to RMB 12 Million to Accelerate Development of Extrahepatic siRNA Delivery Platforms

Sino Biopharm APP, China Bio-Pharmaceutical (01177) announced that on January 13, 2026, the Company (through the Buyer) fully acquired Hygieia. The Buyer, Zhengda Pharmaceutical Investment (Beijing) Co., Ltd. (a wholly-owned subsidiary of the Company), entered into a sales and purchase agreement with the Sellers (collectively referring to the existing shareholders of Hygieia as of the date of the agreement), the Founders (Kunyuan Cui and Tao Guan), Hygieia, Guangzhou Subsidiary (Guangzhou Hygieia Biomedical Technology Co., Ltd.), Xiamen Subsidiary (Xiamen Ganbaoli Biopharmaceutical Co., Ltd.), and Shanghai Subsidiary (Shanghai Heyi'an Biomedical Co., Ltd.). According to the agreement, the Sellers conditionally agreed to sell, and the Buyer conditionally agreed to acquire 100% of Hygieia's equity at a maximum base consideration of RMB 12 million (subject to adjustment), which will be partially paid in cash and partially in consideration shares. Upon completion, Hygieia will become an indirect wholly-owned subsidiary of the Company.

Hygieia is a pioneering biopharmaceutical company focused on the research and development of innovative small interfering RNA (siRNA) drugs. It has established an integrated innovative drug development system from target discovery to clinical proof-of-concept (POC), with a primary focus on three major chronic disease areas: weight management and metabolism, cardiovascular and cerebrovascular diseases, and the nervous system. This forward-looking strategic acquisition will accelerate the Group's innovative layout and clinical advancement in the chronic disease field, leading the way for a new generation of innovative therapies to benefit patients worldwide.

Chronic diseases have become the primary threat to global public health. However, existing therapies commonly face systemic limitations such as restricted efficacy, safety risks, and low patient compliance, leaving significant unmet clinical needs. With its ability to target "undruggable" pathways and provide long-lasting effects, siRNA technology holds the potential to address the pain points of traditional chronic disease treatment models, offering broad application prospects. By 2025, the total disclosed global transactions in the siRNA field are expected to exceed $35 billion, with a year-over-year growth rate surpassing 40%. As a pioneer in siRNA innovative drug development, Hygieia has successfully overcome delivery technology bottlenecks across multiple tissues, achieving precise targeting of the liver (single-target/dual-target), nerves, lungs, kidneys, adipose tissue, and more. This enables long-term silencing of target genes with a single administration. The remarkable efficacy, longevity, and safety of Hygieia's solutions have been validated through both preclinical studies and clinical trials. Through this acquisition, our group will establish an innovative pipeline for next-generation cardiovascular treatments, enhance our presence in the weight management and metabolic field, and expand into new territories within the trillion-dollar chronic disease management market.

Hygieia has successfully developed a differentiated delivery platform covering multiple tissues with independent intellectual property rights. Its core platform, MVIP (Multi-Valent Import Platform), is the world’s first clinically validated liver-targeted delivery platform capable of achieving ultra-long-acting "once-a-year" dosing, addressing the most challenging issue of compliance in chronic disease treatment. The DDP (Dual Delivery System) technology overcomes the industry-wide challenge of dual-target efficacy where 1+1<2 and can be applied to various tissues, with the potential to address complex or refractory diseases mediated by multiple mechanisms in the future. The NSDP (Neuro System Delivery Platform), a nerve-targeted delivery platform, can target the central nervous system or peripheral nerves, and intrathecal delivery technology is expected to achieve "once-a-year" dosing frequency. Additionally, the development of Antibody-Oligonucleotide Conjugate (AOC) technology is accelerating, with the potential to enable more convenient modes of administration.

This acquisition will fully leverage Hygieia's leading advantages in sequence design screening, delivery systems, and chemical modifications, forming a deep complementarity and synergistic effect with our group's mature experience in molecular formats, patent layouts, and clinical translation. Both parties will work together to accelerate the development of the siRNA extrahepatic delivery platform, lead the development of the next-generation core therapeutic pathways, and enhance our group's global competitiveness in the siRNA field.

Hygieia owns four clinical-stage assets and more than ten preclinical assets, all of which have the potential to be first-in-class and best-in-class. This acquisition will enrich the group's innovative pipeline with international competitiveness, leveraging its strengths in clinical development, regulatory submissions, business development, and commercialization to accelerate the clinical progress of its core pipeline and international market collaborations, fully unlocking its potential global value.

Kylo-11: The world's first ultra-long-acting Lp(a) siRNA with once-a-year dosing, currently in Phase II clinical trials for the treatment of hyperlipoproteinemia(a). Its Phase I data was orally presented at the 2025 American Heart Association (AHA) Annual Meeting, demonstrating best-in-class potential in efficacy and longevity compared to other similar drugs under research globally. It requires a low dose and shows good safety. Over 1.4 billion people worldwide have elevated Lp(a) levels (>50mg/dL), facing the risk of atherosclerotic cardiovascular disease (ASCVD). However, Lp(a) levels cannot be improved by lifestyle changes such as exercise or diet, creating an urgent need for clinical intervention. Currently, there are no approved drugs globally for reducing Lp(a), representing a significant unmet clinical need.

Kylo-12: An APOC3 siRNA with global best-in-class potential, poised to become an ultra-long-acting product with a dosing regimen of once every six months (or longer). Phase II clinical trials are expected to commence in the first half of 2026 for the treatment of hypertriglyceridemia (HTG) and familial chylomicronemia syndrome (FCS). The global crude prevalence rate of HTG among adults is as high as 29.6%. Patients with insufficient response to traditional therapies urgently need more effective treatments. APOC3 siRNA therapy is expected to break the treatment deadlock and fill the market gap.

Kylo-0603: The world's first THR-β small molecule agonist that achieves specific liver targeting through GalNAc conjugation, which is expected to achieve better efficacy and safety with a smaller dosage. It provides a new oral option for fat reduction while preserving muscle and metabolic associated fatty liver disease. Its Phase II clinical trial is expected to commence in the first half of 2026.

By 2026, Hygieia plans to advance multiple innovative projects into the clinical stage, covering neurology-targeted products and intrahepatic single- and dual-target products. Among them, HJY-10 (INHBE siRNA) is planned for obesity treatment, HJY-02 (APP siRNA) is planned for Alzheimer's disease treatment, and HJY-21 (PCSK9 dual-target siRNA) is planned for cardiovascular disease treatment.