Universe Pharmaceuticals INC (NASDAQ:UPC) ("Universe Pharmaceuticals" or the "Company"), a pharmaceutical producer and distributor in China, today announced that the Company has entered into a share purchase agreement to acquire 100% of the issued shares of Best Praise International Limited ("Best Praise"), a company that holds five patents in China with potential applications in pharmaceutical development, for a total purchase price of US$10,751,000, payable in the form of 4,376,552 Class A ordinary shares of the Company.

The 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. The Company believes these patented assets are complementary to its existing focus on elderly healthcare and may provide additional opportunities to  pursue research and development projects, co-development efforts, licensing arrangements, or other commercialization opportunities in areas that complement the Company’s existing pharmaceutical business.

The closing of the acquisition is subject to customary closing conditions. The transaction has been approved by the Company’s board of directors and is expected to close in the third quarter of 2026. There can be no assurance that the transaction will be completed on the anticipated terms or timeline, or at all.