This article was published on July 28, 2025, at 4:15 p.m. on ChosunBiz MoneyMove site.
AriBio's partner company in China has confirmed the selection of Chinese pharmaceutical company Puxing Pharmaceuticals as the partner responsible for the manufacturing and commercialization of the oral Alzheimer's treatment AR1001 in the Greater China region. The company expects that the 'uncertainty of the Chinese contract,' which was one of the obstacles in the merger with Solux, will be resolved.
According to the investment banking (IB) industry on the 28th, NewCo United Pharmaceutical, which holds exclusive sales rights for AriBio in China, signed a contract with Puxing Pharmaceuticals that grants rights for the manufacturing and exclusive sales of AR1001 in Greater China, including China, Hong Kong, and Macao. The total contract value is $1 billion (approximately 1.4 trillion won), including an advance payment and milestone payments, with additional double-digit royalties.
The contract fee is expected to be deposited into NewCo United Pharmaceutical during the week and will likely be transferred to AriBio next week. According to the company, the amount expected to be deposited is in the hundreds of millions of won.
NewCo United Pharmaceutical is a special purpose company (SPC) established for the clinical project of AR1001 in China. While it signed an exclusive sales rights contract with AriBio last year, concerns were raised in the market about the lack of clarity and feasibility regarding this. It is reported that major investors and pharmaceutical companies from China are included as partners in the SPC, but there are worries about the confirmation of the substance. In fact, it was planned to receive the initial contract payment of 30 billion won by October of last year, but only 3.2 billion won was deposited.
In response, the Financial Supervisory Service (FSS) has demanded corrections, arguing that the contract details outlined in the merger securities registration interfere with investor protection. AriBio aimed for a direct entry into the KOSDAQ market, but that fell through, after which it attempted a backdoor listing through a merger with Solux, but has faced opposition from the FSS, causing nearly a year of delay.
AriBio is confident that this contract alleviates such concerns. A source familiar with the deal said, "The existing licensing agreement with China has been expanded through 'strategic renegotiation,'" adding, "Key executives traveled directly to the region to push for negotiations, and specific contract structures and detailed conditions will be officially announced upon their return."
Initially, AriBio was scheduled to receive the second contract payment from NewCo United Pharmaceutical by the 28th. The company stated that as a result of the contract signed this time, it will be able to receive a higher level of royalties instead of the second contract payment. Separately, it expects to receive contract payments in the hundreds of millions of won by next week.
Puxing Pharmaceuticals is a global pharmaceutical group headquartered in Shanghai, China, with annual sales reaching approximately 8 trillion won. It also holds a 49% equity stake in the Chinese pharmaceutical distributor Sinopharm. Puxing Pharmaceuticals is reported to be considering sales contracts for AR1001 in Southeast Asia and the ASEAN market based on this contract. AriBio is conducting global Phase 3 clinical trials for AR1001.