On November 20, 2012, Fosun Pharma announced that it would cooperate with the Shanghai Pharmaceutical Institute of the Chinese Academy of Sciences, in Shanghai, to cooperatively develop 3 innovative targeted-site anti-tumor drugs. Different from the previous CRO model which is relatively loose, the cooperation this time takes a co-development model. Both sides undertake the risk together, own the innovation drug patent and share the results and benefits.
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In recent years, Fosun Pharma has focused on the development of the pharmaceutical business, continued to make greater efforts on innovation of R & D , and has basically completed the layout of a new drug research and development system, and formed a unique “4+1” R & D platform. Chongqing Fochon Pharmaceutical Research Company (Fochon Pharma for short), which was founded by Dr. Wang Weibo (who has been selected in the national “Thousand Persons Plan”) in 2009, is the small molecule innovation drug platform of Fosun Pharma. This platform has strong strength and rich experience in the aspect of new drug design, primary optimization, and rapid synthesis of compounds. It has established and developed 6 Class I new drug projects within 3 years (one of them is going to declare for clinical use), and has applied for 6 PCT patents. Fosun Pharma will fully utilize the unique advantages of the Fochon Pharma platform to accelerate the implementation of the innovation strategy through this cooperation. Both parties of the cooperation will carry out complementary advantages and sharing of resources, so that to realize the , "Industry- Study-and Research Alliance" of significant new drugs creation to achieve a win-win situation.

Chen Qiyu, Chairman of Fosun Pharma, said that the base of this cooperation mode conversion is benefited by the company’s continuous strength of endogenous R & D. “Shanghai Pharmaceutical Institute of Chinese Academy of Sciences is renowned at home and abroad in the new drug research area and has a top domestic scientific team. The cooperation between this private pharmaceutical drug innovation force and a national innovation force will lead the drug creation ability of Fosun Pharma to comprehensively promote, and greatly accelerate the progress of 5 new protein kinase type anti-tumor drug projects of Fosun Pharma, thereby preparing more blockbuster products for the product line of Fosun Pharma.”

Ding Jian, the Director of Shanghai Pharmaceutical Institute, that The biological medicine industry in china has entered an important, strategic transition period of relying on independent innovation by science and technology and changes in growth patterns. The cooperation between Fosun and us has adopted an internationalization policy of integrated, innovation strategies, and win-win cooperation, through sincere cooperation, to develop good drugs which the Chinese public can afford. This will make Chinese drug innovation able to go international as soon as possible and to benefit the people. We believe that the collaboration of industry resources and new drug research and development capabilities from Fosun Pharma and the new drug research and development capabilities from Shanghai Pharmaceutical Institute of the Chinese Academy of Sciences is a strong complement and a powerful combination. It surely will contribute to the realization of the biological medicine ‘Three Steps’ development plan of our country.”

Through this cooperation, Fosun Pharma will gradually expand its own research and increase development strength and adopt models like self-R&D and cooperation with excellent R & D institutes to enrich its own R & D production line in the shortest time possible. This will lay a solid foundation of endogenous growth for the Groups’ industrial sector. Fosun Pharma Group will continue to launch innovative drugs and a number of blockbusters in the next 5-8 years to achieve the group's pharmaceutical industry’s rapid growth strategy.

Introduction of Both Sides of the Cooperation：

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma” for short), was established in 1994, listed on the Shanghai Stock Exchange in August 1998 (stock code: 600196), and listed on the main board of the Stock Exchange of Hong Kong (SEHK) in October 2012 (stock code:2196). It is a leading listed company in the Chinese pharmaceutical industry and also the third A+H stock main-board company in the Chinese pharmaceutical and health industry.

Since being listed on the stock exchange for 14 years, Fosun Pharma’s net profit has grown 21 times, and the compounded annual growth rate averaged 26.72%. Sales revenue, net assets, net profit, and the market value of the stock are ranked in the forefront of listed Chinese pharmaceutical companies.

Fosun Pharma specializes in the modern biopharmaceutical and healthcare industry, and capturs opportunities within the rapidly developing of Chinese pharmaceutical industry, as well as Chinese companies entering the mainstream, world pharmaceutical market. Fosun Pharma's operations, strategically, cover several important segments of the healthcare industry value-chain, including: pharmaceutical research & development, manufacturing, distribution, and retailing. By taking drug research and development as its core, the Company has a leading market position in pharmaceutical distribution and retailing, medical services, diagnostic products and medical devices. As one of the largest pharmaceutical and healthcare companies in China, Fosun Pharma has competitive advantages in research and development, innovation, marketing, integration of mergers and acquisitions, as well as human resources.

Shanghai Pharmaceutical Institute of the Chinese Academy of Sciences was founded in 1932, and is China’s oldest pharmaceutical research institution, is a comprehensive research institute which takes basic research of innovative drugs, application basics, and research and development as its primary goal. It is a renowned national drug research institution at home and abroad, with 6 academicians at present. For decades, Shanghai Pharmaceutical Institute has developed a large number of important innovative drugs, and is rich in resource allocation and R&D experience in the aspect of compounds synthesis, activity testing and screening, and drug candidate pre-clinical studies, etc. The team, led by Ding Jian, is mainly engaged in molecular, targeted, anti-tumor drug development and mechanism study.