Hansoh Pharmaceutical Group Announces Strategic Novation and Transfer of Osteoarthritis Product License

Hansoh Pharmaceutical Group Company Limited (stock code: 3692) has made a significant move by announcing the novation and transfer of its exclusive license for the development and commercialization of KiOmedine® vs One, a medical device for osteoarthritis treatment, to Jiangsu Hengrui Pharmaceuticals Co., Ltd. This development follows a comprehensive review of Hansoh’s portfolio and marks a strategic shift in the company’s focus toward other therapeutic areas.

Key Points of the Announcement

• License Agreement Background: In September 2022, Hansoh’s wholly-owned subsidiaries secured an exclusive license from Belgium-based KiOmed Pharma SA for the development and commercialization of KiOmedine® vs One in Mainland China, Hong Kong, Macau, and Taiwan.
• Novation and Transfer: On April 29, 2026, Hansoh’s subsidiaries entered into a novation agreement with KiOmed and Jiangsu Hengrui Pharmaceuticals (the “New Licensee”). Under this agreement, all rights, liabilities, and obligations under the original license were transferred to Hengrui for a total transfer price of RMB131 million.
• Transfer Price Details: The price comprises an upfront payment and a milestone payment, calculated based on (i) the licensing payments Hansoh had made to KiOmed and (ii) costs and expenses incurred by Hansoh for product development to date.
• Product Status: KiOmedine® vs One is an intra-articular medical chitosan solution for knee osteoarthritis. It was granted a medical device registration certificate by China’s NMPA in August 2025 but has not yet been commercialized.

Strategic Rationale and Implications for Shareholders

• Strategic Shift: Hansoh’s Board determined that its resources would be better allocated to other therapeutic areas more closely aligned with its long-term objectives. This move allows the company to focus on core growth opportunities.
• Recovery of Costs: The transfer price enables Hansoh to recover its actual costs and expenses incurred in connection with the product, as the product has yet to generate revenue or profit. The Board considers the pricing method fair and reasonable under these circumstances.
• Financial Nature: Importantly, the expenditures on this project have largely been recognized as research and development expenses in Hansoh’s consolidated statements. The transaction is of a revenue nature, not an asset disposal, and does not trigger any notifiable or connected transaction requirements under Hong Kong Listing Rules.
• Impact on Shareholders: This development is material and potentially price-sensitive. The transfer monetizes a non-core asset, recovers sunk costs, and sharpens Hansoh’s strategic focus, which could be viewed positively by investors seeking value creation and operational efficiency.
• Counterparty Strength: Jiangsu Hengrui Pharmaceuticals is a leading global pharmaceutical company with extensive experience in orthopedics, enhancing the likelihood of successful commercialization of the product.

Additional Information

• KiOmed Pharma SA is recognized for its innovation and expertise in chitosan chemistry, based in Belgium.
• The New Licensee, Jiangsu Hengrui Pharmaceuticals, is listed on both the Shanghai Stock Exchange (A shares: 600276) and the Hong Kong Stock Exchange (H shares: 1276), and is engaged in R&D, manufacturing, and sales of pharmaceutical products.

Board of Directors

The Board comprises Ms. Zhong Huijuan as chairlady and executive director, Ms. Sun Yuan and Dr. Lyu Aifeng as executive directors, and Mr. Lin Guoqiang, Mr. Chan Charles Sheung Wai, Ms. Yang Dongtao, and Mr. Yan Jia as independent non-executive directors.

Shareholder Advisory

The company advises shareholders and potential investors to exercise due care when dealing in the shares, as this announcement relates to a potentially price-sensitive transaction that could impact Hansoh’s share value through portfolio optimization and cost recovery.

Disclaimer: The above article is based on publicly disclosed information by Hansoh Pharmaceutical Group Company Limited. It is not investment advice. Investors are urged to conduct their own research and consult with professionals before making investment decisions. The company has stated that the transaction does not constitute a notifiable or connected transaction under the Hong Kong Listing Rules. Market reactions may vary.

View HANSOH PHARMA Historical chart here