Fosun Diagnostics Acquired 58.67% Equity of Suzhou Abcarta

On August 20, Fosun Diagnostics, a holding subsidiary of Fosun Pharma, signed the investment agreement with Suzhou Abcarta, its founder Wu Chun, and Suzhou Abcarta’s existing shareholders. According to the agreement, Fosun Diagnostics will pay about 102 million yuan to acquire Suzhou Abcarta (about 4.21 million yuan registered capital) held by Suzhou Abcarta's existing shareholders. After the completion of the transaction, Fosun Diagnostics will hold about 58.67% equity of Suzhou Abcarta. Fosun Diagnostics is expected to acquire about 93.2% equity if the follow-through investment is completed.

For this acquisition, Fosun Diagnostics has valued its independent intellectual property rights of pathological immunohistochemistry and tumor-associated diagnostic testing as its characteristic layout direction, as well as its patented monoclonal immunohistochemistry specific antibody opener technology starting from antigen design，which can form a complete product closed loop of the field of immunohistochemistry.

As an in vitro diagnostic technique, companion diagnosis can help to identify the patient population who will respond to a certain therapeutic drug. Suzhou Abcarta systematically developed a series of specific immunohistochemical antibodies against mutation sites or specific target proteins, which can be used to detect and screen cancer patients for related sites. They can also be used for the determination of tumor targets of targeted drugs, the prediction of tumor chemical drug treatment response and the comprehensive evaluation of tumor prognosis judgment, which can achieve and realize the significance of companion diagnosis.

In addition, the PD-1/PD-L1 related reagents independently developed by Suzhou Abcarta will help to accurately screen the beneficiaries of the company's PD-1 monoclonal antibody (HLX10) related tumor immunotherapy program, thereby helping doctors provide important guidance for patients' personalized medication and efficacy monitoring. Finally, this reagent will promote the clinical application and development of tumor immunotherapy and benefit patients.

Suzhou Abcarta was established in 2018 by Dr. Wu Chun. Previously, it was committed to promoting the standardization, automation, intelligence and precision of clinical pathological diagnosis and precision treatment. It has obtained more than 450 pathological diagnosis auxiliary reagents and immune groups. Meanwhile, it has obtained more than 450 pathological diagnosis auxiliary reagents and immunohistochemical staining instrument products and production record certificates, and cooperate with more than 200 hospitals and medical institutions.

Through this acquisition, Fosun Diagnostic and Suzhou Abcarta will rely on their respective leading technologies, talents, platforms and resources to focus on industrial R&D in the diagnostic field, to accelerate the development of new products and new technology platforms, and to enrich the product system of Fosun's diagnostic business, and forms complementarity and synergy with the existing ones, thereby improving the overall layout of the diagnostic business, achieving strategic synergy with Fosun Diagnostics, and achieving ecological synergy with Fosun Pharma.