Universe Pharmaceuticals INC (NASDAQ: UPC) (“Universe Pharmaceuticals” or the “Company”), a pharmaceutical producer and distributor in China, 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.

Mr. Gang Lai, Chief Executive Officer of Universe Pharmaceuticals, commented, “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.”

Mr. Lai continued, “We also believe this transaction supports the Company’s profile as a Nasdaq-listed public company. By adding intellectual property assets to the Company’s platform, the Company expects to strengthen its asset base and enhance its long-term capital position. We believe these efforts are important to supporting the Company’s continued development and creating value for shareholders.”

The Company believes that the proposed acquisition is consistent with its long-term strategy of expanding its pharmaceutical platform around elderly healthcare, age-related conditions and other areas of market relevance.

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.

The share purchase agreement has been filed as an exhibit to a report on Form 6-K with the U.S. Securities and Exchange Commission. Investors and shareholders are encouraged to read the share purchase agreement and other relevant documents when they become available.

About Universe Pharmaceuticals INC

Universe Pharmaceuticals INC, headquartered in Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor in China. The Company specializes in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The Company also distributes and sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Currently, the Company’s products are sold in 30 provinces of China.