Fosun Pharma/BioNTech establishes a joint venture company in China

On May 9, Fosun Pharma announced that it would establish a joint venture with BioNtech in China to realize the localized production and commercialization of mRNA COVID-19 vaccine products. According to the agreement, both parties will respectively subscribe 50% of the registered capital of the joint venture company. Among them, Fosun Pharmaceutical Industry intends to use cash and/or tangible or intangible assets (including factory buildings and production facilities, etc.) to contribute a total of no more than US$100 million, and BioNTech intends to use its related production technology and proprietary technology licenses and other intangible assets as capital contributions The total does not exceed US$100 million.

Fosun Pharma and BioNtech signed the mRNA new crown vaccine license agreement on March 13, 2020""), and was authorized to exclusively develop and commercialize the latter's proprietary mRNA in the Greater China Region (including Mainland China, Hong Kong, Macao and Taiwan) Vaccine products against the new coronavirus developed by the technology platform. In order to ensure the supply of mRNA for the new coronavirus vaccine in the Chinese market, Fosun Pharmaceutical Industry and BioNTech signed the "License Agreement Amendment One" on December 15, 2020, and will import and export products as finished products. The import of packaged preparations in China (excluding Hong Kong, Macao and Taiwan), sub-package, localized production and other stages to promote the sales and supply of mRNA new crown vaccine in China have reached an agreement.

In order to further implement the localized production of mRNA COVID-19 vaccine in the "License Agreement Amendment One", the two parties announced the signing of the "Terms", the establishment of a joint venture company, and an agreement that Fosun Pharmaceutical Industry should provide an annual production capacity of up to 1 billion doses of mRNA COVID-19 Vaccine production facility, and injected the facility as part of the investment into the joint venture company. BioNTech shall complete the technology transfer through a technology license agreement, provide the technical support required for the production of the mRNA COVID-19 vaccine, and ensure that there are sufficient personnel to implement such technology transfer and technical support. The reasonable expenses incurred will be borne by the joint venture company.

Regarding the subsequent commercialization of the vaccine, it was agreed that the joint venture company would hire an affiliate of Fosun Pharmaceutical Industry as the CSO to provide marketing and sales services for the mRNA COVID-19 vaccine in China (excluding Hong Kong, Macao and Taiwan), and pay the CSO accordingly. cost of. Fosun Pharmaceutical Industry will pay BioNTech the sales milestones agreed in the existing agreement (regardless of whether the joint venture is established or not).