Chongqing Lummy Pharmaceutical

On August 20, the A-share pharmaceutical sector surged in early trading, with innovative drug names leading the gains. Walvax Biotechnology, Lummy Pharmaceutical, and CanSino Biologics were among multiple stocks that hit the 20 percent daily limit up. The direct catalyst for this rally was major progress in the overseas pharmaceutical industry. Overnight in the U.S. market, Moderna's stock soared nearly 180 percent after its mRNA personalized cancer vaccine, developed in collaboration with Merck, posted initial positive results in its first Phase III clinical trial. The vaccine, combined with Keytruda, was used as adjuvant therapy in more than 1,100 high-risk melanoma patients who had undergone complete surgical resection, and it met key endpoints of recurrence-free survival and reduced risk of distant metastasis. This is the world's first individualized neoantigen mRNA cancer vaccine to enter the final sprint toward market approval, cutting the risk of recurrence or death by 49 percent. The fundamentals of China's innovative drug industry have already undergone substantial change. A research report from Ping An Securities noted that in the first half of 2026, multiple innovative drug companies showed strong commercial ramp-up, and the industry reached a large-scale inflection point of turning profitable. BeiGene posted product revenue of 1.7 billion dollars in the second quarter alone, while Innovent Biologics reported product revenue of more than 8.2 billion yuan in the first half of the year. According to statistics from the National Medical Products Administration, from January to June 2026, the total value of China's out-licensing deals for innovative drugs reached approximately 110 billion dollars, equivalent to 80 percent of the full-year total for 2025, setting another record high. The upstream CXO sector is also seeing confirmed improvement in its business climate. Guosen Securities stated that Chinese CDMO companies have built comprehensive competitive advantages based on talent dividends, compliant production capacity, and intellectual property protection, and that the global position of chemical CDMOs will be difficult to replace within five years.

Zhongheng Group announced that its controlling subsidiary, Chongqing Lummy Pharmaceutical Co., Ltd., has received the Drug Registration Certificate for Acetylcysteine Solution for Inhalation issued by the National Medical Products Administration. The drug specification is 3ml:0.3g, and the approval number is valid until August 3, 2031. It was developed using Zambon S.p.A.'s Fluimucil as the reference listed drug, and is indicated for respiratory diseases caused by excessive thick mucus secretions. According to Mohn Medical data, from 2024 to the end of the first quarter of 2026, the drug's sales in China's hospital terminal market were 2.339 billion yuan, 1.936 billion yuan, and 534 million yuan respectively. Lummy Pharmaceutical's total R&D investment for this drug was 2.5409 million yuan. The company stated that obtaining this registration certificate will help enrich its product line and enhance competitiveness.

Zhongheng Group's controlling subsidiary, Chongqing Lummy Pharmaceutical, plans to acquire the drug registration approval and all global commercial rights for Vitamin D soft capsules from Jiangxi Tianzhihai Pharmaceutical for 28 million yuan. The product is a 0.25 milligram, or 10,000 unit, Vitamin D soft capsule used for preventing or treating diseases related to Vitamin D deficiency. According to data from Morningside Healthcare, from 2023 to 2025, the product's total hospital sales were 1.028 billion yuan, 1.265 billion yuan, and 1.766 billion yuan respectively, while brick-and-mortar pharmacy sales over the same period were 310 million yuan, 283 million yuan, and 310 million yuan. This transaction does not include the national distribution rights already held by Lummy Pharmaceutical's wholly-owned subsidiary, Chongqing Lummy Medical. As of the valuation date of November 30, 2025, the investment value assessed using the income approach was 28.1887 million yuan. After the transaction, Lummy Pharmaceutical will achieve full-chain integration of the product, further enriching its product line and enhancing market competitiveness.