Market conditions change dramatically: Kangtai Biological terminates nearly 2.8 billion yuan joint venture project with AstraZeneca

On the evening of February 6th, Kangtai Biological (300601) announced that the board of directors approved the termination of the establishment of a joint venture with AstraZeneca Investment (China) Co., Ltd. (hereinafter referred to as “AstraZeneca”) on the same day. The total investment amount for the project was close to 2.8 billion yuan.

Looking back to March 21, 2025, Kangtai Biological previously announced that after careful consideration, the listed company planned to establish a deep strategic partnership with AstraZeneca focused on vaccines and to set up a joint venture in Beijing Economic and Technological Development Zone (hereinafter referred to as “Beijing Economic Development Zone”) as a platform for developing innovative vaccines in China, serving the Chinese market and emerging markets.

The announcement disclosed that the registered capital of the aforementioned joint venture was expected to be 345 million RMB (equivalent to 50 million USD), with Kangtai Biological and AstraZeneca each holding 50% of the equity. The total investment in the joint venture was estimated to be about 400 million USD (approximately 2.76 billion RMB), with the final actual investment amount to be determined based on project progress.

According to the plan, the joint venture would develop global innovative vaccines, including AstraZeneca’s research-stage combination vaccines for respiratory syncytial virus (RSV) and human metapneumovirus (hMPV) (also known as IVX-A12) and other innovative products, for development, registration, localized production, and commercialization in China.

It is understood that AstraZeneca is a global biopharmaceutical company focused on the research, development, manufacturing, and marketing of prescription drugs, with key areas including oncology, rare diseases, and biopharmaceuticals such as cardiovascular, renal, metabolic, respiratory, vaccines, and immunotherapies. Currently, AstraZeneca’s global headquarters is located in Cambridge, UK, with operations in over 100 countries worldwide, and its innovative medicines benefit millions of patients globally.

It should be noted that a major background for this cooperation was AstraZeneca’s announcement of a $2.5 billion investment plan, including establishing its sixth global strategic R&D center in Beijing and multiple R&D and manufacturing collaborations. This five-year investment plan also included cooperation agreements with three biotech companies: HeBo Medicine, Yuan Si Sheng Tai, and Kangtai Biological, as well as the acquisition agreement of Fabo China announced at that time.

The Beijing Global Strategic R&D Center is the second such center established by AstraZeneca in China, following the Shanghai Global Strategic R&D Center. It will be supported by an artificial intelligence and data science laboratory, dedicated to advancing early drug research and clinical development. Meanwhile, the new joint venture between AstraZeneca and Kangtai Biological will become AstraZeneca’s first and only vaccine manufacturing base in China.

However, after nearly a year, Kangtai Biological ultimately announced the termination of the joint venture cooperation plan with AstraZeneca.

Kangtai Biological stated that after signing, all parties actively communicated, negotiated, and promoted this investment. However, due to drastic changes in the market environment and significant downward pressure on the industry, the risks associated with additional investment in the vaccine industry were relatively high. After careful evaluation and friendly negotiations, it was decided to terminate the “Economic Development Cooperation Agreement,” the “Terms List,” and the external investment in establishing the joint venture. From the date of termination becoming effective, neither party will bear any obligations or responsibilities.

Kangtai Biological pointed out that as of the disclosure date of this announcement, the external investment to establish the joint venture had not yet been actualized, and it would not have a significant impact on the company’s existing business, financial condition, or operational status, nor would it affect the company’s future development plans. In the future, Kangtai Biological will continue to integrate internal and external resources and advantages, focusing on the “internal innovation + external expansion” dual-driven strategy, continuously deepen its international business layout, and enhance the company’s overall competitiveness.