Universe Pharmaceuticals INC has entered into a definitive agreement to acquire 100% of the issued shares of Best Praise International Limited for a total purchase price of approximately $10.75 million. The all-stock transaction aims to expand the company's pharmaceutical patent portfolio, specifically targeting assets relevant to elderly healthcare and age-related diseases. The transaction is expected to close in the third quarter of 2026, subject to customary closing conditions, and has been approved by the company's board of directors.

The consideration for the acquisition will be paid in the form of 4,376,552 Class A ordinary shares of Universe Pharmaceuticals INC. Best Praise holds five patents in China with potential applications in pharmaceutical development. The acquired patent portfolio covers several pharmaceutical and healthcare-related areas, including age-related diseases, neurodegenerative conditions, cognitive disorders, cardiovascular-related pharmaceutical applications, antibacterial compounds, and drug delivery technologies.

Management stated that the acquisition aligns with its strategy of expanding beyond its traditional Chinese medicine business while enhancing its long-term pharmaceutical platform. The company noted that the intellectual property assets are complementary to its existing focus on products serving China's aging population and may provide additional opportunities for research and development projects, co-development efforts, and licensing arrangements.

The company believes the transaction supports its profile as a Nasdaq-listed public company by strengthening its asset base and enhancing its long-term capital position. The acquisition is consistent with Universe Pharmaceuticals INC's long-term strategy of expanding its pharmaceutical platform around elderly healthcare and other areas of market relevance.

Transaction Details