Fosun Pharma (600196.SH; 02196.HK), a leading innovator in pharmaceuticals, may soon spin off its fourth subsidiary for a separate listing. On October 28, the company announced plans to explore the potential spin-off and Hong Kong IPO of its vaccine business platform, Fosun ATGen (Chengdu) Biopharmaceutical Co., Ltd. ("Fosun ATGen"), aiming to enhance governance and sustainable growth while maximizing shareholder value.
As of the announcement, the proposed spin-off remains in preliminary evaluation, including assessing whether listing conditions can be met. No concrete plan has been finalized, and significant uncertainties persist.
Established in July 2012 and headquartered in Chengdu, Fosun ATGen focuses on R&D, production, and sales of human vaccines, with platforms for bacterial and viral vaccines. Its portfolio includes domestically approved rabies vaccines (Vero cell-based) and influenza split vaccines, while its 13-valent pneumococcal conjugate vaccine is in Phase III clinical trials in China.
Currently, Fosun Pharma’s subsidiary Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. holds a 70.08% stake in Fosun ATGen, with the remaining 29.92% split among 17 other shareholders.
Financially, Fosun ATGen reported losses: as of June 30, 2025, total assets stood at RMB 3.972 billion, equity at RMB 2.235 billion, and liabilities at RMB 1.737 billion. Revenue for 2024 and H1 2025 was RMB 97.42 million and RMB 153 million, respectively, with net losses of RMB -123 million and RMB -58.45 million. Fosun Pharma stated the spin-off would help Fosun ATGen secure funding and boost competitiveness while strengthening the group’s vaccine sector presence.
Previously, Fosun Pharma spun off SISRAM Medical (01696.HK) and Henlius Biotech (02696.HK) in Hong Kong, and Gland Pharma in India.
In Q3 2025, Fosun Pharma reported revenue of RMB 29.393 billion (down 4.91% YoY), net profit of RMB 2.523 billion (up 25.5% YoY), and innovative drug revenue exceeding RMB 6.7 billion (up 18.09% YoY). Operating cash flow reached RMB 3.382 billion. However, liquidity pressure remains, with cash at RMB 11.478 billion against short-term loans of RMB 16.447 billion and long-term loans of RMB 9.431 billion.
Separately, Fosun Pharma’s subsidiary plans to invest RMB 100 million (10% stake) in a RMB 1 billion Chengdu-based private equity fund targeting innovative drugs, biologics (including vaccines), high-end medical devices, and synthetic biology. Partners include China Resources Pharmaceutical Group and Chengdu government-backed funds. The fund aims to leverage synergies in healthcare and local industrial advantages.
Upon establishment, the fund will become an associate of Fosun Pharma.