Beijing Sihuan Pharmaceutical to collaborate with AMMS for anti-Ebola drug jk-05

Pursuant to the terms on the Collaboration Agreement, the Group will pay a technology transfer and drug development fee amounting to RMB 10 million to AMMS for the ownership and franchise of the drug. Payment will be settled in installments based on the progress of drug development, until approval for production is received.

jk-05, which has been under study and development for five years by the Institute of Microbiology and Epidemiology of AMMS, is a new drug designated for the treatment of the Ebola virus. It was recently approved as a special drug for military needs after passing evaluation by health experts of the General Logistics Department of People’s Liberation Army. The drug is a key technology for the prevention and control of the outbreak of Ebola in China.

The Ebola virus has been defined as the most severe biological threat in the world by the World Health Organization. The fatality rate for hemorrhagic fever caused by — 1 — Ebola has been extremely high. Four major outbreaks have been recorded since the first case of Ebola identified in 1976, but so far no specific and effective treatment for the disease is available. In recent years, the Institute of Microbiology and Epidemiology of AMMS has been conducting special studies on preventive medications and has developed the anti-Ebola drug jk-05.

As a small molecular chemical entity, jk-05 can selectively inhibit virus replication by inhibiting the ribonucleic acid (RNA) polymerase of the Ebola virus. The research shows that it exhibits anti-Ebola virus activity in horizontal infection experiments on cells and animals. jk-05 is a new RNA polymerase selective inhibitor which possesses broad-spectrum anti-RNA virus activity against Ebola virus activity. In addition, jk-05 has an inhibitory effect on a variety of RNA viruses such as influenza, yellow fever, arena virus, bunyaviridae virus, etc. The cooperation between the Group and AMMS will support further research and development efforts on jk-05 as a broad-spectrum antiviral drug, and will ensure its successful manufacture and launch to the market by Beijing Sihuan and addition of the drug to the national reserve.

The successful development of jk-05 can meet the market demand for preventing and treating viral infections, and counter their prevalence. The cooperation between the Group and AMMS in the development of the anti-Ebola drug is expected to speed up the development process of the drug. The Group will work together with AMMS to bring the drug to the market as soon as possible, to achieve successful commercialization, and to contribute to the prevention and control of viral prevalence and infection in China.
In the meantime, the cooperation will also add high quality project to the Group by expanding the Group’s areas of development field and enhancing its product pipeline, and will help the Group sustain strong development momentum in the long run.

This announcement is being made by the Company on a voluntary basis to let the investing public understand the Group’s latest business development, and does not constitute, and is not intended to be, an advertisement regarding the use of any medicine, surgical appliance, treatment or orally consumed product.