AriBio has secured a strategic investment from the partner that holds global rights to its oral Alzheimer's treatment.
AriBio said on the 22nd that the first tranche of 11.475 billion won, part of a 42.5 billion won third-party allotment to China's Fosun Pharma, was paid in on the 21st.
The two companies signed a 42.5 billion won ($27.5 million) strategic equity investment agreement in July. The amount paid in this time is the first tranche of about 11.5 billion won. Once the second investment is completed, Fosun Pharma will hold about 5% of AriBio, making it the third-largest shareholder after AriBio Holdings (290690) and Samjin Pharmaceutical.
An AriBio official said the payment was made after clearing both the Chinese government's outbound direct investment (ODI) approval and remittance authorization. "With our global licensing partner injecting capital directly and joining as a major shareholder, the cooperation between the two companies has been elevated beyond a contractual relationship into a strategic alliance backed by equity investment," the official said.
Fosun Pharma had earlier signed a global exclusive licensing agreement with AriBio worth a combined 7 trillion won for AR1001, an oral Alzheimer's drug. AriBio plans to concentrate the funds on preparing AR1001 for global commercialization and on developing follow-up pipeline assets, including global trials of its electroceutical device Herzion.
AriBio will present top-line results from the global Phase 3 trial of AR1001 at CTAD 2026, an Alzheimer's disease clinical trials conference, in Boston on Nov. 16. AriBio and Fosun Pharma have built a joint framework covering development, regulatory approval, manufacturing and commercialization.
"We are deeply grateful to Fosun Pharma for the unwavering trust it has shown throughout demanding administrative procedures," AriBio CEO Jung Jae-jun said. "On the strength of a solidified financial base and our global partnership, we will press ahead with our stride toward becoming a world-class biopharmaceutical company."