Everest Medicines (01952) has announced the signing of a strategic cooperation framework agreement with Hissen on September 9, 2026, under which both parties have agreed to establish a framework for product supply, distribution, and related manufacturing and commercialization activities within China.

The Group has been actively developing its pharmaceutical distribution and supply chain capabilities in China, with expectations to secure its pharmaceutical trading license by the end of 2026. Following the receipt of the relevant license, the Group intends to conduct pharmaceutical trading and distribution operations in accordance with applicable GSP requirements.

To this end, the Group plans to leverage the strategic cooperation framework agreement with Hissen as its partner, utilizing Hissen's GSP platform, commercial infrastructure, production-related resources, as well as the various products held or authorized by the Hissen Group, to jointly expand cooperation in commercial services, distribution, and manufacturing-related activities for products in the region.

Additionally, upon obtaining the pharmaceutical trading license, the Group intends to carry out pharmaceutical trading and distribution activities for its own pipeline products—including but not limited to NEFECON®, VELSPITY®, and EGA®—in accordance with applicable GSP requirements.

Considering the Group's existing staff, facilities, and other resources dedicated to manufacturing and commercialization, along with the products owned by Hissen, the strategic cooperation framework agreement is expected to enable the Group to deploy its existing capabilities on a larger scale and support the efficient supply, distribution, and commercialization of products in China.

The payments to be made by the Group to the Hissen Group under the strategic cooperation framework agreement primarily consist of procurement costs for products or materials used in connection with the Group's downstream distribution, sales, and commercialization activities. These payments will form part of the Group's operating cost base rather than representing separate service fees payable to the Hissen Group.

The board believes that the strategic cooperation framework agreement will allow the Group to further leverage its supply chain, manufacturing, and commercialization infrastructure while expanding its revenue base and deepening its strategic collaboration with Hissen.