China's First Unwinding Order: SAMR Blocks Completed Below-Threshold Pharma Deal

On 23 July 2025, China's State Administration for Market Regulation (SAMR) issued a prohibition decision against Wuhan Yongtong Pharmaceutical's (YT Pharma) acquisition of Shandong PKU High Tech Huatai Pharmaceutical (HT Pharma), which completed in 2019 (the Acquisition).

Whilst this case is SAMR's fourth prohibition decision, it is notably SAMR's first prohibition of a transaction that was proactively called in for a review by SAMR as well as SAMR's first unwinding order of a completed transaction. It is another example of the pharmaceutical sector being an enforcement focus for SAMR.

Case Overview

YT Pharma signed an agreement in November 2018 to acquire a 50% stake in, and control over, HT Pharma. The shareholding change was registered in March 2019.