Market Supervision Administration: Ban on Wuhan Tong's acquisition of Shandong Huatai Pharmaceutical's equity.

The State Administration for Market Regulation issued a notice on the decision of the anti-monopoly review on the prohibition of Wuhan Yadong Pharmaceutical Co., Ltd. acquiring equity of Shandong Beidagaoke Huatai Pharmaceutical Co., Ltd. After evaluation, the State Administration for Market Regulation believes that the proposed solution submitted by the applicant indicates their willingness to take measures to restore the situation to before the concentration. Considering that the concentration of operators in the domestic market for morphine hydrochloride injections in China has the effect of excluding and restricting competition, and the applicant is willing to take measures to restore the situation to before the concentration, the State Administration for Market Regulation has decided to prohibit this concentration and ordered Wuhan Yadong and its ultimate controlling person to take the following measures: before January 22, 2026, transfer their indirectly held shares of Shandong Huatai Pharmaceutical to unrelated third parties. If special circumstances prevent the completion of the share transfer, they should apply to the State Administration for Market Regulation in advance and explain the reasons. If a buyer cannot be found within the prescribed period or an extended period approved by the State Administration for Market Regulation, they should appoint a trustee to find a suitable buyer and complete the share transfer. Before the share transfer is completed, they are not allowed to participate in the operation and management of Shandong Huatai Pharmaceutical in any way. Before September 30, 2025, cancel the morphine hydrochloride raw material agent agreement with Qinghai Pharmaceutical and other operators, and they are not allowed to implement related agreements until they are cancelled. Report the transfer of shares and cancellation of raw material agent agreements to the State Administration for Market Regulation in a timely manner. At the same time, the ultimate controlling person of Wuhan Yadong voluntarily commits to not engage in operator concentration in the field of morphine hydrochloride raw materials and morphine hydrochloride injections in the future. The State Administration for Market Regulation has the right to supervise and inspect Wuhan Yadong and its ultimate controlling person's compliance with the above obligations. If Wuhan Yadong and its ultimate controlling person fail to comply with or violate the above obligations, the State Administration for Market Regulation will take action in accordance with relevant provisions of the Anti-Monopoly Law.