Innovative Pharmaceutical Biotech Limited informed of the status of the commercialization of the oral insulin product (the "Product") and the latest business development of the Group. The in-process research and development project (the "In-process R&D") represented an in-process research and development project involving the Product. Fosse Bio-Engineering Development Limited ("Fosse Bio") is a subsidiary of Smart Ascent Limited, which became a subsidiary of the Company upon completion of the acquisition on 28 July 2014.

Fosse Bio and Tsinghua University, Beijing ("THU") have entered into the agreements in 1998 (the "THU Collaboration Arrangement") in connection with the research and development of the Product. Pursuant to the THU Collaboration Arrangement, which will be expired in October 2018 and subsequently extended to October 2023 by entered the supplemental agreement on 12 November 2018, Fosse Bio would be entitled to commercialize the relevant technologies of the Product and to manufacture and sell the Product on an exclusive basis, and THU is entitled to 1.5% of Fosse Bio's annual sales upon commercialization of the Product. Accordingly, Fosse Bio has the exclusive right for the commercialization of the Product for the duration of the unexpired term of the THU Collaboration Arrangement.

On 25 June 2024, the Group entered second supplemental agreement with THU to renew the term of the THU Collaboration Arrangement to 30 June 2027. The Board is of the view that the renewal of the THU Collaboration Arrangement can facilitate the exclusive commercialization of the Product by the Group and is in the interests of the Company and its shareholders as a whole. Latest update to the status of commercialization of the Product The Group is conducting the Part B of phase III clinical trial (the "Clinical Trial") of the Product and the enrolment of the first batch of patient for the Clinical Trial testing has been commenced in July 2020.

As at 31 March 2024, about 400 patients have been enrolled in the selected participating hospitals to take place in the Clinical Trial. The enrolment of patients will be an ongoing process. The normal operations of the participating hospitals for the Clinical Trial had been disrupted by the coronavirus pandemic.

The factors as discussed in the annual report of 31 March 2023 of the Company continue to affect the progress of Clinical Trial this year. Particularly, the reorganization of the approved drug manufacturer which has led to delays in sample drug production. Based on the latest information available to the Company, the timeline to commercialization of the Product have been revised.

The Product is expected to be launched in the market and available for sale at selected hospitals by first quarter of 2026. The Group is expected to generate a stable source of revenue and profit after the launch of the Product taking into account that (i) there is massive demand in the PRC for innovative insulin products in light of the growing diabetic population; (ii) once the Product is launched, it is expected to become the first oral insulin drug available in the market; (iii) the Product is expected to be sold at a reasonable price range and will provide a superior and effective treatment method for diabetes patients; and (iv) once the Product is launched, it will be protected for a period of 5 years under the current regulations in the PRC which prohibits other companies from manufacturing and/or undergoing clinical trial for similar products.