Luye Pharma : Major step forward in becoming a leading global pharmaceutical enterprise

[November 30th, 2016, Hong Kong] Luye Pharma Group Ltd. (2186.HK) is pleased to announce the completion of its acquisition of the transdermal drug delivery systems (TDS) business from Swiss company, Acino. The acquired business is a global leader in niche transdermal markets and will greatly enhance Luye's developmental efforts in R&D, manufacturing, international registration, and market promotion of new formulation products to international standards, thereby helping to pave the way for Luye's expansion into the global markets.

The acquired business is one of the largest independent TDS manufacturers in Europe, with a product portfolio primarily focused on more sophisticated and higher margin specialty patch categories such as CNS, pain and hormone spaces under several successfully commercialised and hard-to-make formulations such as Rivastigmine, Buprenorphine, Fentanyl and fertility control patch.

Luye Pharma pointed out that completion of the acquisition is extremely encouraging for Luye Pharma, as it fully represents the core of Luye Pharma's globalization strategy - leveraging on M&A, R&D, brand marketing and world-class quality control capabilities to keep pace with development within both Chinese domestic and global markets. Luye Pharma's future on the road towards globalization and into broader markets will be accelerated. The company will also continue to serve and promote human health through professional technology, working to develop Luye Pharma into one of the most respected leading global pharmaceutical enterprises in the world.

The global market sales of transdermal patches reached over 5 billion Euros in 2014, and is expected to hit 6.4 billion Euros by 2020, with a projected compound annual growth rate greater than 4%. The global market for TDS business is huge with strong growth potential. An ageing population will be accompanied by a similar increasing trend in chronic diseases, which is a key application area for TDS treatments. In emerging markets like China, there are currently 260 million people suffering from chronic diseases, and presents a substantial market for TDS business. Moving forward, Luye Pharma will explore new market expansion opportunities for the TDS business by fully leveraging its experience and expertise in the Chinese market.

At the same time, Luye Pharma will continue to learn and adopt practices from the integration of its acquired business. With its mature sales network and international presence in many developed markets around the world - especially the European region, this will help Luye Pharma in the market launch of more innovative products in the future. In addition, the TDS business, with its advanced R&D systems and high quality factories with EU GMP certificate and certification from the U.S. FDA, will greatly help Luye Pharma in the constant pursuit of meeting and exceeding international standards in production, quality control and global operations.

Luye Pharma is a leading Chinese pharmaceutical enterprise driven by innovation and primarily focuses on therapeutic areas such as Central Nervous System, Oncology, Cardiovascular, and Metabolic diseases. Since inception, Luye Pharma has adopted innovation and globalization as its core growth drivers. As one of the pioneering Chinese pharmaceutical enterprises to have conducted clinical trials in international markets, Luye Pharma currently has 5 innovative products at various stages of clinical research with significant breakthroughs in the U.S.

Source 1：Third-party data
Source 2：Whitepaper of China's Health Care by The State Council Information Office of People's Republic of China issued on December 26th, 2012