China Resources Pharmaceutical Group Co., Ltd. (HKG: 3320) announced plans to sell a 17.87% stake in Hefei Tianmai Biotechnology Co., Ltd., with a minimum listing price of RMB 1.42 billion (USD 205 million). The divestment follows ORMD-0801’s failed NMPA approval in December 2025, prompting CR Pharma to further reduce exposure to the insulin-focused biopharmaceutical company after multiple stake adjustments since 2016.
Transaction Overview
Element
Detail
Seller
China Resources Pharmaceutical Group (HKG: 3320)
Asset
17.87% stake in Hefei Tianmai Biotechnology Co., Ltd.
Minimum Price
RMB 1.42 billion (USD 205 million)
Valuation Method
Open listing/auction
Tianmai Bio Focus
Recombinant human insulin R&D, production, and sales
Shareholding History & Strategic Evolution
Timeline
Event
CR Pharma Stake
Strategic Context
2010
Tianmai Bio founded
–
Insulin manufacturing focus
Nov 2016
CR Pharma initial investment
20%
Entry into diabetes biopharma
Dec 2017
GMP certification delay; partial exit
Sold 14.12% at HKD 1.147B (USD 146M)
Risk management; retained 5.88%
2020
Increased stake
23.75% (largest shareholder)
Recommitment to insulin + ORMD-0801 oral insulin potential
Dec 2025
ORMD-0801 NMPA rejection
23.75% maintained until now
Catalyst for full exit strategy
Feb 2026
Planned divestment of 17.87%
Reducing to ~5.88%
Monetization of remaining position
ORMD-0801 Failure & Investment Thesis Breakdown
Parameter
ORMD-0801 Profile
Failure Impact
Technology
Recombinant human insulin enteric-coated capsule (oral insulin)
Revolutionary potential vs. injectable insulin
Origin
Licensed from Israel’s Oramed Pharma
Technology transfer and China-specific development costs
NMPA Status
Rejected December 2025
Core value driver eliminated; Tianmai Bio reduced to injectable insulin commodity player
CR Pharma Response
Accelerated divestment
Loss of confidence in Tianmai Bio growth trajectory; capital reallocation to higher-priority assets
Market Context & Strategic Implications
Factor
Strategic Analysis
China Insulin Market
>100 million diabetes patients; intense price competition from domestic (Gan & Lee, Tonghua Dongbao) and multinational (Novo Nordisk, Sanofi) manufacturers
Tianmai Bio Position
Limited to recombinant human insulin (commoditized, VBP pricing pressure) without ORMD-0801 differentiation
CR Pharma Portfolio Optimization
Divestment aligns with state-owned enterprise restructuring; proceeds likely redirected to innovative biologics or high-growth therapeutic areas
Valuation Benchmark
USD 205 million for 17.87% implies ~USD 1.15 billion enterprise value; represents downround from 2020 peak expectations post-ORMD-0801 failure
Transaction Outlook
Phase
Activity
Timeline
Current
Listing announcement; buyer solicitation
Q1 2026
Execution
Auction/bidding process; stake transfer completion
Q2 2026
Post-Divestment
CR Pharma retains ~5.88% passive holding or full exit
2026-2027
Proceeds Use
Reinvestment into CR Pharma core pharmaceutical or healthcare services businesses
Ongoing
Forward‑Looking Statements This brief contains forward‑looking statements regarding China Resources Pharmaceutical’s stake sale completion, Tianmai Bio valuation in post-ORMD-0801 environment, and CR Pharma capital reallocation strategy. Actual results may differ due to buyer interest levels in insulin manufacturing assets, pricing negotiations, and regulatory developments affecting Tianmai Bio’s remaining product portfolio.-Fineline Info & Tech
By Fineline Cube