Universe Pharmaceuticals INC (NASDAQ: UPC), a pharmaceutical producer and distributor based in Ji'an, Jiangxi, China, has entered into a share purchase agreement to acquire 100% of the issued shares of Best Praise International Limited, a company holding five patents in China, for $10,751,000.

The purchase price will be paid entirely in stock, consisting of 4,376,552 Class A ordinary shares of Universe Pharmaceuticals. The transaction has been approved by the company's board of directors and is expected to close in the third quarter of 2026, subject to customary closing conditions.

The five patents cover areas including age-related diseases, neurodegenerative conditions, cognitive disorders, cardiovascular pharmaceutical applications, antibacterial compounds, and drug delivery technologies.

Chief Executive Officer Gang Lai stated, "This acquisition reflects our continued efforts to expand the Company's pharmaceutical capabilities. By adding intellectual property assets in areas related to elderly healthcare, cognitive health, cardiovascular applications, antibacterial compounds and drug delivery technologies, we believe Universe Pharmaceuticals will be better positioned to broaden its product pipeline and pursue additional avenues for long-term growth."

The company said the acquired patents may be used for research and development, co-development efforts, licensing arrangements, or other commercialization activities. The share purchase agreement has been filed as an exhibit to a Form 6-K report with the U.S. Securities and Exchange Commission.