TWi Biotechnology and DuKang Pharmaceuticals Announce Merger Approval by Shareholders– Target Effective Date Set for September 30, 2025

TWi Biotechnology, Inc. (“TWi Biotechnology”) is pleased to announce that the proposed merger with DuKang Pharmaceuticals Inc. (“DK Pharma”) has been approved by the shareholders of both companies during their respective Annual General Meetings held on June 6, 2025.

In accordance with the terms of the merger agreement, TWi Biotechnology will be the surviving entity, and DK Pharma will be dissolved upon completion of the transaction. The effective date of the merger is tentatively scheduled for September 30, 2025. However, the Boards of Directors of both companies retain the authority, as granted by their shareholders, to adjust the effective date if necessary.

Under the agreed-upon terms, TWi Biotechnology will issue new shares in exchange for all outstanding shares of DK Pharma at a 1:1 exchange ratio. Upon completion of the merger, TWi Biotechnology’s paid-in capital will increase from NT$ 876 million to NT$ 1.836 billion.

This merger represents a significant milestone in TWi Biotechnology’s strategic growth. By combining complementary strengths, TWi Biotechnology believes the merger will deliver multiple benefits, including expanding its pipeline of innovative drug candidates, entering new therapeutic areas, enhancing R&D capabilities, consolidating clinical and regulatory resources, and creating operational synergies, ultimately strengthening competitiveness and increasing the enterprise value.

These advantages will not only improve overall competitiveness but also enhance long-term value for shareholders, partners, and the broader healthcare community.

TWi Biotechnology remains committed to its mission of advancing science and delivering transformative therapies that meet critical medical needs. We look forward to sharing more updates as the integration progresses.

About TWi Biotechnology:

TWi Biotechnology, Inc. is a clinical-stage biopharmaceutical company based in Taipei, Taiwan, specializing in developing innovative therapies through drug repurposing strategies for dermatological and rare diseases with significant unmet medical needs. Established in 2010 by renowned scientist-turned entrepreneur Dr. Chih-Ming Chen, the company presently has two core drug development programs:

 AC-203: a topical formulation of 1% diacerein being developed for epidermolysis bullosa simplex (EBS), a rare genetic skin disorder with no approved therapeutic treatments. Early clinical trials demonstrated significant reduction of blisters among patients with severe EBS. An international, multicenter, randomized, double-blind, vehicle-controlled, phase 2/3 study with open-label extension study, referred to as the EBShield Study, is currently underway. AC-203 has received an Orphan Drug Designation in the US, EU, and Taiwan, as well as Rare Pediatric Disease and Fast Track Designations from the US FDA.

AC-1101: a propriety topical gel formulation of tofacitinib citrate, a JAK inhibitor, for inflammatory skin diseases, including granuloma annulare (GA), a rare, chronic skin disease with no approved treatments. A phase 1b clinical study on GA in the US was completed in 2024, which demonstrated good safety and tolerability, minimal systemic exposure, and potential efficacy trends. An application for an Orphan Drug Designation is awaiting US FDA’s decision. TWi Biotechnology’s shares are traded on Taiwan's Emerging Stock Market with a market capitalization of approximately USD 35 million. Dr. Chih-Ming Chen owns approximately 50% of the company’s shares.

About DuKang Pharmaceuticals

DuKang Pharmaceuticals Inc. focuses on the development of innovative therapies for central nervous system (CNS) disorders. Its lead candidate, NORA520, is an oral prodrug of brexanolone developed for the treatment of postpartum depression (PPD) and major depressive disorder (MDD) — both representing large and underserved patient populations. NORA520 offers oral convenience with a pharmacokinetic profile comparable to Zulresso, aiming to improve treatment compliance. In phase 1 trials involving healthy subjects, NORA520 demonstrated a favorable safety profile with no severe adverse events. A double-blind, placebo-controlled phase 2 trial in PPD patients is currently ongoing in the United States, with a phase 2 MDD trial planned to begin in the coming months.