# Acquires Depression Drug Technology: Stepson Pharmaceutical Secures 10 Papers and 1-2 Patents, Partner Assists with New Drug Registration

On March 12, Bubang Pharmaceutical (603858) announced that its wholly-owned subsidiary, Shandong Danhong, signed a “Technology Transfer and Scientific Research Cooperation Agreement” with Hangzhou Hongyu Medicine. The agreement involves acquiring preclinical research technology for Yiqi Huoxue Jiyu Granules and collaborating on subsequent new drug development. The transaction amount has been exempted from disclosure due to commercial confidentiality and does not constitute a related-party transaction or major asset reorganization.

It is reported that the target product of this cooperation, Yiqi Huoxue Jiyu Granules, is a Class 1.1 traditional Chinese medicine new drug, which has obtained a clinical approval (Number: 2025LP01696). Its main functions are to boost qi and blood, regulate qi, and relieve depression. It is mainly used for post-stroke depression and ischemic stroke complicated with mild to moderate depression, corresponding to syndromes of qi deficiency and blood stasis, and liver qi stagnation. According to the contract, Hongyu Medicine will transfer all preclinical research technologies and related intellectual property rights for this product, and assist Shandong Danhong in completing subsequent pharmaceutical research, clinical trials, registration applications, and other work until obtaining the drug registration certificate.

Additionally, Hongyu Medicine is required to conduct related scientific experiments and academic research on the product. It commits to publishing no fewer than 10 high-level related papers and applying for 1-2 invention patents within 3-4 years after signing the contract. It will also conduct in-depth research on the pharmacodynamic material basis to support the product’s market launch and subsequent traditional Chinese medicine component development. The intellectual property rights of the target technology and newly generated technological achievements under this cooperation belong exclusively to Shandong Danhong, while Hongyu Medicine holds honorary rights.

This cooperation was approved at the 44th meeting of the fifth board of directors of Bubang Pharmaceutical on March 12 and does not require shareholder approval. Bubang Pharmaceutical stated that this collaboration will enrich the company’s product R&D pipeline, expand its layout in cardiovascular, cerebrovascular, and psychiatric medicine fields, and further enhance its market competitiveness. It will not adversely affect the company’s financial condition or operating results.

The announcement also reminds that drug R&D involves long cycles and many steps, with multiple uncertainties such as policies and clinical trials. There are certain risks regarding the progress and outcomes of this new drug development. The company will disclose subsequent project developments in a timely manner as required.

In the first three quarters of 2025, Bubang Pharmaceutical achieved revenue of 8.469 billion yuan and a net profit attributable to the parent of 868 million yuan.