On June 25, Lyon released a research report stating that Fosun Pharma and Henlius jointly announced yesterday (24th) that Fosun Pharma will privatize Henlius by way of absorption and merger, with a cash cancellation price of HKD 24.6 per H share, representing a premium of 36.67% over the closing price before the latter's trading suspension. The bank reiterated its "outperform" rating on Fosun Pharma, with a target price of HKD 14.6 per H-share. It is assumed that the privatization is completed, and the cash tender offer value is expected to reach HKD 5.4 billion, with funding coming from Fosun Pharma's internal cash and no more than HKD 3.7 billion in M&A loans. As of the first quarter of 2024, Fosun Pharma's cash and cash equivalents were 13 billion yuan, but its net debt was 13.5 billion yuan.