In 2016, Athenex began building out the Company’s U.S.-based specialty pharmaceutical products organization in advance of the launch of our own proprietary products. The Athenex specialty pharmaceutical products team markets and sells in-licensed and 503B pharmaceutical products which are therapeutically related to our proprietary portfolio. In 2019, the Company established Athenex Oncology with the goal of launching and marketing our future proprietary products, and internalized key components of the supply chain, in order to minimizing the risks of potential supply chain disruptions. In March 2022, the Company made the announcement to strategically pivot the vast majority of resources to its Cell Therapy platform, acquired in 2021 through Kuur Therapeutics. Operations that were previously established to support small molecule platform are now considered non-core, and we are evaluating actions that we can take to unlock their value.

Athenex Pharmaceutical Division (APD)

The Company’s U.S. specialty pharmaceuticals business sources products through licensing agreements with various partners, who we refer to as our Global Partner Network. APD benefits from unique commercial expertise in multisource oncology and therapeutically related products. Furthermore, APD has developed a number of Global Partners that develop and manufacture multisource products for the U.S. market. Athenex’s Global Partner collaborations represent a profit split between the Company and its partners. Athenex markets the products to Gatekeepers and Influencers in the U.S. oncology market, helping prepare the future launches of any approved Athenex proprietary oncology products into the U.S. market.

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Athenex Pharma Solutions (APS)

Athenex Pharma Solutions represents the Company’s 503B Compound Pharmacy business. In our cGMP manufacturing facility, APS produces both sterile-to-sterile products, and products from sterile bulk API (Active Pharmaceutical Ingredient). APS sources certain of the API for our sterile bulk API products from our own internal supply chain.

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