By Fineline Cube 
Shandong Jincheng Pharmaceutical Group Co., Ltd. (SHE: 300233) disclosed that its wholly‑owned subsidiary Jincheng Taier has signed an agreement to transfer the “Proxyl Estrogen Vaginal Soft Capsule” production technology and Marketing Authorization Holder (MAH) rights to Shanghai Hemony Pharmaceutical Co., Ltd.. The transaction is valued at RMB 50 million and is expected to close by the end of Q4 2025.
Transaction Details
| Item | Description |
|---|---|
| Seller | Jincheng Taier (subsidiary of Shandong Jincheng Pharma) |
| Buyer | Shanghai Hemony Pharmaceutical Co., Ltd. |
| Asset | Production technology & MAH rights for Proxyl Estrogen Vaginal Soft Capsule |
| Consideration | RMB 50 million (≈ US$7.0 million) |
| Closing Window | Expected Q4 2025 |
| Regulatory Status | Approved in China (Dec 2005), valid through May 2030 (Approval No. [redacted]) |
Product Background
- Proxyl Estrogen Vaginal Soft Capsule – Indicated for:
- Vaginal atrophy caused by estrogen deficiency.
- Persistent, unhealed lesions or delayed scabbing of the cervix, vagina, or vulval mucosa following childbirth, local surgery, or physical‑therapy procedures (laser, cryotherapy, cauterization, etc.).
- Competitive Landscape – Jincheng Taier also markets Proxyl Estrogen Cream. Because both products are manufactured at a single site, the soft‑capsule formulation offers no clear promotional or clinical advantage over the cream, leading to internal competition.
- Financial Impact – In 2024, sales of the vaginal soft capsule accounted for ≈ 1.05 % of Shandong Jincheng’s total operating revenue, underscoring its modest contribution to the group’s topline.
Strategic Rationale
- Portfolio Rationalisation – Divesting the low‑margin capsule line allows Jincheng Taier to concentrate resources on the higher‑volume cream product and other growth assets.
- Capital Reallocation – The RMB 50 million proceeds can be redeployed into R&D pipelines, new product launches, or debt reduction.
- Buyer’s Expansion – Shanghai Hemony gains a fully approved, niche estrogen‑therapy product with an existing MAH framework, accelerating its entry into the women’s‑health market.
Market & Regulatory Outlook
- Regulatory Timeline – The MAH transfer will require approval from the National Medical Products Administration (NMPA). Given the existing approval (valid until May 2030), the process is expected to be straightforward.
- Revenue Forecast – Post‑transfer, Jincheng Taier will lose the capsule’s modest revenue stream but may improve overall margin by eliminating duplicated marketing and sales efforts.
- Industry Implication – The deal highlights a broader trend of Chinese pharma groups pruning non‑core assets and focusing on scalable, high‑margin products.
Forward‑Looking Statements
This brief contains forward‑looking statements regarding the transaction timeline, financial impact, and regulatory expectations. Actual results may differ due to market conditions, regulatory review outcomes, and the execution of the asset transfer.-Fineline Info & Tech