Huiyu Pharmaceutical has announced the signing of a strategic cooperation agreement with Avenacy Holdings, Inc.

Under the terms of the agreement, the two parties will establish a long-term strategic partnership through mechanisms including equity arrangements, sales agency authorizations, and milestone payment schedules.

Avenacy will issue, or arrange for an existing shareholder to transfer, up to 30% of its equity to Huiyu's wholly-owned subsidiary, Haiyue Pharmaceutical Co., Ltd. (Ireland), thereby making Haiyue a long-term strategic shareholder in Avenacy.

Avenacy is a U.S.-based company specializing in pharmaceutical commercialization, sales, and channel operations, possessing a generic drug sales network and channel resources within the American market.

By forming this long-term strategic alliance with an overseas partner, Sichuan Huiyu Pharmaceutical Co.,Ltd. (ASX: 688553) aims to broaden its product sales channels, intensify its penetration into international markets, and enhance control over its overseas business operations.

This move is expected to help expand the company's overseas revenue base and mitigate operational pressures from reliance on any single market.

The agreement does not involve a specific monetary value and is not anticipated to have a material impact on the company's current fiscal year performance.