尊龙凯时·(中国)人生就是搏!

On May 7, 2024, Tonghua Dongbao Pharmaceutical Co., Ltd. (hereafter referred to as "Tonghua Dongbao" or "the Company") entered into a Capital Increase Agreement with JHM Biopharm (Hangzhou) Co., Ltd. (hereafter referred to as "JHM") and its founding shareholders. Under the agreement, Tonghua Dongbao will use RMB 100 million of its own capital to purchase shares in JHM. As a result, JHM's registered capital will be increased by RMB 9.5031 million and the remaining will be allocated to its capital reserve. Through this investment, Tonghua Dongbao will secure an 8.6759% ownership stake in JHM following the capital increase.

This investment stays in line with the Company's strategic focus on Internal R&D and External Cooperation. JHM is at the forefront of developing novel recombinant protein drugs and synthetic biology products. The Company is recognized for its cutting-edge technology platforms in China and its extensive product development systems. Its impressive portfolio includes five R&D pipelines featuring recombinant human growth hormones, long-acting recombinant growth hormones, recombinant botulinum toxins Type A, and recombinant Types I and III human collagen.

With this capital increase, the Company will gain priority rights to JHM's existing and future R&D projects for development and business collaboration worldwide. This will facilitate the Company's expansion into the consumer healthcare sector, enriching and diversifying its product portfolio, improving its revenue structure, and enhancing its sustained profitability. Following this investment, the Company will also leverage its own capital, R&D, clinical, and other competitive edges and resources to advance JHM's R&D progress and assist in the rapid industrialization of its technologies.

Mr. Li Jiahong, Chairperson of Tonghua Dongbao, commented, "Our investment in JHM marks a pivotal milestone poised to fuel our future growth. JHM is renowned for its exceptional R&D team and cutting-edge core technology platforms. Their investigational pipeline, which includes recombinant growth hormones, recombinant human collagen, and recombinant botulinum toxin Type A, promises significant market potential and is expected to form great synergy with our existing and in-development products. Looking ahead, we plan to harness our robust distribution networks, brand impact, and other core competencies developed over the years to foster multifaceted cooperation with JHM. This partnership will enable us to pool our strengths, sharpen our competitive edge, and ensure sustained, stable growth."

Ms. Xu Kui, Chairperson of JHM, remarked, "I am tremendously grateful for Tonghua Dongbao's trust and support of JHM. Our focus is on high-end recombinant protein products, dedicating ourselves to their development and commercialization. We continuously innovate our underlying technology platforms and upgrade our product line, aiming to expand into wider market segments including consumer and professional healthcare. This funding round will enable us to strengthen our collaboration with Tonghua Dongbao. By leveraging their advantages and deep expertise in the biopharmaceutical field and effectively integrating resources of both parties, we can accelerate our growth and ensure long-term success."

About JHM

JHM Biopharm (Hangzhou) Co., Ltd. is at the forefront of developing novel recombinant protein drugs and novel synthetic biology products. With years of expertise in core technologies, platforms, and talent, as well as comprehensive project management across the entire process of technology development, animal safety evaluations, and clinical research, JHM has established a robust system for technology and product development. The company prides itself on its four core platform technologies that lead the domestic market. JHM has achieved significant milestones in technological development, analytical method development, quality studies, and non-clinical and clinical trials, particularly with human growth hormones, recombinant botulinum toxin Type A, and recombinant Type III human collagen. Currently, its principal products are in the clinical research or regulatory submission stages.

About Recombinant Human Collagen

Recombinant collagen production involves significant challenges across design, manufacturing, and application development. JHM's investigational products, JHM08 (Recombinant Type I Human Collagen) and JHM09 (Recombinant Type III Human Collagen), are full-length proteins that precisely match the sequences of Type I/III human collagen and maintain a triple helical structure. The production process emulates the natural biosynthesis of Type I/III human collagen using cell factories. Data from structural characterizations show that the higher-order structures of JHM's recombinant Type I/III human collagen are highly consistent with those of their natural counterparts. JHM has completed its process development and scale-up activities, and has established a commercial-scale manufacturing facility that is now in operation. JHM's development progress and industrialization capacity are industry-leading.

The recombinant collagen market in China is still in its infancy but is experiencing rapid growth in terms of market penetration and overall size. According to Frost & Sullivan, from 2017 to 2021, China's overall collagen product market expanded from RMB 9.7 billion to RMB 28.8 billion, representing a compound annual growth rate (CAGR) of approximately 31.3%. The market size is projected to reach RMB 173.8 billion by 2027. In parallel, the market for recombinant collagen products grew from RMB 1.5 billion to RMB 10.8 billion over the same period, with an impressive CAGR of 63.0%. By 2027, the market size for recombinant collagen is expected to reach RMB 108.3 billion, accounting for more than 60% of the total collagen market.

About Recombinant Botulinum Toxin Type A

Recombinant botulinum toxin Type A is challenging to develop due to its complex higher-order structure, which complicates its recombinant protein expression and demands high purification standards. JHM's investigational product, JHM03, is at the forefront of the next-generation botulinum toxin products. It offers considerable advantages over traditional botulinum toxins available domestically and internationally, including smaller-scale production, increased batch yields, streamlined processing, ultra-high purity, and the absence of immunogenic impurities. Currently, JHM03 is in Phase I/II clinical trials, the second recombinant botulinum toxin Type A to reach this stage in the industry.

China's botulinum toxin market is characterized by high barriers to entry, limited formal supply, low penetration rates, and significant growth potential. In 2019, China administered approximately 3.36 million botulinum toxin treatments, achieving a penetration rate of just 0.24%. This is in stark contrast to the United States, which recorded about 7.698 million treatments at a penetration rate of 4.3%. According to Frost & Sullivan, the Chinese market for botulinum toxin products was valued at RMB 4.6 billion in 2021, having grown at a CAGR of 25.6% since 2017. The market is expected to hit RMB 39 billion by 2030, maintaining its rapid growth trajectory.

About Recombinant Growth Hormones

The recombinant human growth hormone market is expected to hit tens of billions of RMB. JHM's product pipeline includes JHM01, a recombinant human growth hormone injection, and JHM02, a long-acting version. These liquid injectables are strategically designed to cater to a broad spectrum of consumers, from those seeking cost-effective solutions to those requiring high-end treatments. JHM01 has advanced to Phase III clinical trials, while JHM02 is currently undergoing pre-clinical pharmacological and toxicological studies.

In China, the adoption rate of growth hormone therapies remains relatively low. According to Frost & Sullivan, only 4.8% of patients with Pediatric Growth Hormone Deficiency (PGHD) received growth hormone therapies in 2022, but this is expected to increase to 10.5% by 2030. The market size for human growth hormones in China has expanded rapidly from USD 600 million (approximately RMB 4 billion) in 2018 to USD 1.7 billion (approximately RMB 12 billion) in 2022. The PGHD treatment market size is projected to grow to about RMB 35.8 billion by 2030, achieving a CAGR of 19.8% from 2018 to 2030.