Shanghai Fosun Pharmaceutical : VOLUNTARY ANNOUNCEMENT- ACQUISITION OF EQUITY INTEREST IN A SUBSIDIARY (H SHARES)

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上 海 復 星 醫 藥（ 集 團 ）股 份 有 限 公 司

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.*

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 02196)

VOLUNTARY ANNOUNCEMENT

MEDIA REPORTS REGARDING LICENSE AGREEMENT

ENTERED INTO BY A SUBSIDIARY

This announcement is made by Shanghai Fosun Pharmaceutical (Group) Co., Ltd.* (the ''Company'' and, together with its subsidiaries, the ''Group'') on a voluntary basis.

It has come to the Company's attention that there have been recent media reports concerning the licensing by MPP (as defined below) to 27 entities (including the Group) regarding production of oral medication for treatment of COVID-19. The Company makes this announcement to provide further information in this regard.

On 7 January 2022, Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. (''Licensee''), a wholly-owned subsidiary of the Company, entered into a sublicense agreement (''Agreement'') with Medicines Patent Pool (''MPP''), a non-profit foundation registered under the laws of Switzerland with a mission to increase access to quality, safe, efficacious, and affordable medicines for low- and middle- income countries or territories through an innovative approach to voluntary licensing and patent pooling.

The subject matter of the Agreement concerns the sublicensing of Molnupiravir (the ''Medication''). The Medication, which is developed by Merck Sharp & Dohme Corp. (''MSD'') in collaboration with Ridge back Biotherapeutics LP, is an investigational oral COVID-19 antiviral medicine applied towards inhibiting the replication of SARS-CoV-2,the causative agent of COVID-19. MPP obtained the right to sublicense certain patents and know-hows relating to the Medication from MSD.

Pursuant to the Agreement, MPP has granted to the Licensee a non-exclusive sublicense to, among other things, manufacture the raw ingredient and finished drug in respect of the Medication, and to commercialize the Medication (including its registration, retail and distribution) in a total of 105 low- and middle-income countries or territories. The Licensee will manufacture the Medication at production facilities that are (i) certified under the World Health Organization (''WHO'') pre-qualification

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standards, or (ii) approved by the relevant member institutions under the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH). As at the date of this announcement, the cost and the relevant price have not yet been determined. But in light of the purpose of the sublicense being to facilitate access to the Medication in low- and middle-income countries or territories, it is expected that the price of the Medication under such sublicense will be lower than that in mid- and high-income countries.

The sublicense provided under the Agreement is royalty-free until the end of the month in which the WHO declares the end of the Public Health Emergency of International Concern regarding COVID-19, whereupon the Licensee will be required to pay MSD royalty at 5% or 10% of the net sales of products that contain the Medication pursuant to the Agreement.

Based on information that is publicly available, the Medication has only obtained conditional approval or emergency use authorization in a number of countries including the United Kingdom, the United States and Japan. There are only limited clinical data in relation to the Medication and the clinical use of the Medication may result in unreported serious adverse events or unexpected adverse events. As at the date of this announcement, the Group has not commenced manufacturing of the Medication, or received any purchase order relating to the same.

Shareholders and potential investors of the Company should exercise caution when dealing in the securities of the Company.

By order of the Board

Shanghai Fosun Pharmaceutical (Group) Co., Ltd.*

Wu Yifang

Chairman

Shanghai, the PRC

23 January 2022

As at the date of this announcement, the executive directors of the Company are Mr. Wu Yifang, Mr. Wang Kexin and Ms. Guan Xiaohui; the non-executive directors of the Company are Mr. Chen Qiyu, Mr. Yao Fang, Mr. Xu Xiaoliang and Mr. Pan Donghui; and the independent non-executive directors of the Company are Ms. Li Ling, Mr. Tang Guliang, Mr. Wang Quandi and Mr. Yu Tze Shan Hailson.

• For identification purpose only

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