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LUYE PHARMA GROUP LTD.

綠 葉 製 藥 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 02186)

ANNOUNCEMENT

APPROVAL TO DEVELOP BUPRENORPHINE TRANSDERMAL PATCHES IN CHINA

The board of directors (the ''Board'') of Luye Pharma Group Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') is pleased to announce that the Group has obtained the approval from the China Food and Drug Administration (the ''CFDA'') to commence the development of Buprenorphine Transdermal Patches in the People's Republic of China (the ''PRC'' or ''China'').

According to the regulations of the CFDA, narcotic drugs and psychotropic drugs are subject to strict regulation in China. The research and development, production, sale, usage, storage, transportation and other activities related to such drugs must be conducted in accordance with the regulations promulgated by the State Council of the People's Republic of China. Buprenorphine Transdermal Patches is classified as a Class II psychotropic drug and CFDA's prior approval must be obtained before the launch of any pre-clinical studies for Buprenorphine Transdermal Patches. The number of approval granted to develop psychotropic drugs in China is highly restricted. Currently, there is only one imported Buprenorphine Transdermal Patches which has been approved for sale in China, and no PRC manufactured Buprenorphine Transdermal Patches have been approved for sale in China. Accordingly, the Company believes that the risk of likely competition in this field is relatively low.

Buprenorphine Transdermal Patches is a pain relief medication developed by Luye Pharma AG (''Luye Germany''), a subsidiary of the Company. The product has been marketed in a number of countries including the United Kingdom, Germany and Spain. Leveraging on the expertise in transdermal patches of Luye Germany's research and development platform, the Group will also seek to register the product in the United States, Japan and South Korea.

The successful integration of Luye Germany into the Group has enabled the Group to enter into a new therapeutic area of narcotic and psychotropic drugs, which has a relatively high entry barrier and substantial growth potential. The Company believes that Luye Germany will continue to help strengthen the Group's penetration into the central nervous system therapeutic area.

By Order of the Board

LUYE PHARMA GROUP LTD.

Liu Dian Bo

Chairman

Hong Kong, 24 February 2017

As at the date of this announcement, the executive directors of the Company are Mr. LIU Dian Bo, Mr. YANG Rong Bing, Mr. YUAN Hui Xian and Ms. ZHU Yuan Yuan; and the independent non-executive directors of the Company are Mr. ZHANG Hua Qiao, Professor LO Yuk Lam, Mr. LEUNG Man Kit and Mr. CHOY Sze Chung Jojo.

Luye Pharma Group Ltd. published this content on 24 February 2017 and is solely responsible for the information contained herein.
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