Lakeside Secures New Distribution Agreements with Kelun Pharmaceutical

Rhea-AI Summary

Lakeside Holding (Nasdaq: LSH) announced that its subsidiary, Hupan Pharmaceutical, has secured two distribution agreements with Hubei Kelun Pharmaceutical Trading Co., , a subsidiary of Sichuan Kelun Pharmaceutical Co. (002422.SZ). The agreements, effective from January 1, 2025, to December 31, 2025, enable Hupan Pharmaceutical to distribute large-volume parenteral solutions and related medical products to healthcare institutions across China.

This development follows Lakeside's recent agreement with Sichuan Huiyu Pharmaceutical, a specialist in oncology and immune-related therapies, demonstrating the company's growing presence in the pharmaceutical distribution sector. The new partnerships reinforce Hupan Pharmaceutical's ability to establish relationships with major pharmaceutical companies in the industry.

Positive

• Secured new distribution agreements with Kelun Pharmaceutical for nationwide distribution in China
• Expanded product portfolio to include large-volume parenteral solutions and medical equipment
• Demonstrates continued business growth following recent Huiyu Pharmaceutical agreement

Negative

• None.

Insights

Healthcare Supply Chain Analyst

The distribution agreements with Kelun Pharmaceutical mark a strategic expansion in Lakeside's pharmaceutical distribution network. Given Lakeside's micro-cap status ($15.15 million market cap), securing contracts with a major player like Kelun Pharmaceutical (listed on Shenzhen Stock Exchange) represents a significant opportunity to scale operations and potentially increase revenue streams.

The focus on large-volume parenteral solutions is particularly noteworthy as these are essential medical supplies with stable, recurring demand in healthcare facilities. This creates a predictable revenue base, though margins in distribution typically range from 2-5%. The one-year contract duration suggests a trial period, which is standard practice in the industry for new partnerships.

When combined with the recent Huiyu Pharmaceutical agreement, Lakeside is building a diversified portfolio of high-quality suppliers, which could help mitigate supply chain risks and strengthen their market position in China's pharmaceutical distribution sector. However, investors should note that distribution agreements alone don't guarantee significant revenue growth - execution and efficient logistics management will be important for profitability.

Market Research Analyst

This partnership positions Lakeside strategically in China's pharmaceutical distribution market, which is projected to reach $574 billion by 2025. The agreement with Kelun, a well-established player in China's pharmaceutical industry, provides Lakeside with enhanced credibility and potential access to Kelun's extensive healthcare institution network.

For a micro-cap company like Lakeside, securing multiple distribution agreements with major industry players signals strong business development capabilities. The timing aligns with China's healthcare reforms emphasizing efficient drug distribution and improved accessibility. The focus on parenteral solutions represents a stable market segment with consistent demand patterns, though competitive pressures from larger distributors could impact margins.

The sequential success in securing agreements (first Huiyu, now Kelun) suggests improving market recognition of Lakeside's capabilities. While the financial impact will depend on actual distribution volumes and terms, these partnerships could serve as a foundation for capturing larger market share in China's rapidly growing pharmaceutical distribution sector.

Expanding Partnerships with Major Industry Players

ITASCA, Ill., Jan. 21, 2025 /PRNewswire/ -- Lakeside Holding Limited ("Lakeside" or the "Company") (Nasdaq: LSH), a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market is pleased to announce that its wholly owned subsidiary, Hupan Pharmaceutical (Hubei) Co., Ltd. ("Hupan Pharmaceutical"), has entered into two distribution agreements with Hubei Kelun Pharmaceutical Trading Co., Ltd., a subsidiary of Sichuan Kelun Pharmaceutical Co., Ltd., a publicly traded company on the Shenzhen Stock Exchange (002422.SZ), principally engaged in the research and development, manufacture and distribution of pharmaceutical products.

Under the agreements, Hupan Pharmaceutical will distribute basic large-volume parenteral solutions, along with related medical products and equipment, to healthcare institutions across China. The agreements, effective from January 1, 2025, to December 31, 2025, further expand Hupan Pharmaceutical's portfolio of medical distribution clients.

These contracts with Kelun Pharmaceutical represent another milestone for Lakeside, following its recent agreement with Sichuan Huiyu Pharmaceutical Co., Ltd. ("Huiyu Pharmaceutical"), a leader in oncology and immune-related therapies. This continued momentum highlights Hupan Pharmaceutical's ability to forge relationships with major pharmaceutical players, further strengthening its position in the pharmaceutical distribution sector.

Lan Su, Chief Operating Officer of Lakeside commented, "These agreements with Kelun Pharmaceutical build on the success of our other recent agreements. We appreciate earning the trust of leading pharmaceutical companies to deliver critical medical products efficiently, ensuring they reach the patients who need them most."

About Lakeside Holding Limited

Lakeside Holding Limited is a U.S.-based cross-border supply chain solution provider with a unique focus on the Asia-Pacific market. Through two specialized subsidiaries—American Bear Logistics and Hupan Pharmaceutical (Hubei) Co., Ltd.—Lakeside delivers tailored logistics solutions spanning general and specialized sectors.

American Bear Logistics, with strategic hubs in Chicago, Dallas, Los Angeles, and New York, offers customized cross-border ocean and airfreight solutions, connecting Asia-based logistics service companies and e-commerce platforms with the U.S. market.

Lakeside recently acquired Hupan Pharmaceutical (Hubei) Co., Ltd., expanding its service scope and enhancing its pharmaceutical logistics and distribution capabilities within China. This strategic move underscores Lakeside's commitment to advancing integrated cross-border logistics solutions.

For more information, please visit https://lakeside-holding.com.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under "Risk Factors," may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

Investor Relations Contact:

Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

 

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SOURCE Lakeside Holding Limited

FAQ

What are the terms of LSH's new distribution agreements with Kelun Pharmaceutical?

The distribution agreements between LSH's subsidiary Hupan Pharmaceutical and Kelun Pharmaceutical are effective from January 1, 2025, to December 31, 2025, covering the distribution of large-volume parenteral solutions and related medical products to healthcare institutions across China.

What products will LSH distribute under the new Kelun Pharmaceutical agreement?

Under the agreements, LSH will distribute basic large-volume parenteral solutions, along with related medical products and equipment to healthcare institutions across China.

How does the Kelun Pharmaceutical deal fit into LSH's recent expansion strategy?

The Kelun Pharmaceutical agreements follow LSH's recent partnership with Huiyu Pharmaceutical, demonstrating the company's continued expansion in the pharmaceutical distribution sector and ability to forge relationships with major industry players.

What is the geographic scope of LSH's distribution rights under the Kelun agreement?

The distribution agreements grant LSH rights to distribute products to healthcare institutions across China.