Stem Cell Hope for Arthritis: ElpasBio & Fosun Kairos Target China

SHANGHAI, CN – January 13, 2026 – A landmark collaboration announced today aims to bring a potentially revolutionary stem cell therapy to millions suffering from knee osteoarthritis in China, signaling a major strategic move in the country’s burgeoning regenerative medicine market.

Clinical-stage biotech firm ElpasBio Holdings has granted exclusive commercialization rights for its investigational therapy, AlloJoin®, to Fosun Kairos, the pioneering cell therapy arm of Fosun Pharma. The agreement covers Mainland China, Hong Kong, and Macau, regions grappling with a massive and growing burden of the degenerative joint disease. AlloJoin®, currently in a pivotal Phase III trial, is positioned as a potential first-in-class treatment that could modify the course of knee osteoarthritis, a feat current therapies have not achieved.

An Answer to an Epidemic of Aching Knees

Knee osteoarthritis (KOA) is more than a simple ailment of aging; it is a public health crisis in slow motion, particularly in China. The nation's rapidly aging demographic has created a perfect storm for the disease's prevalence. Projections estimate that by 2025, approximately 160 million people in China will suffer from osteoarthritis. The numbers paint a stark picture of a population in pain: since 1992, the prevalence of KOA has surged by over 150%, with women being disproportionately affected at a rate more than double that of men.

For these millions, life is often defined by chronic pain, joint stiffness, and a progressive loss of mobility and quality of life. Current treatment options are largely palliative. They range from nonsteroidal anti-inflammatory drugs (NSAIDs) and corticosteroid injections to hyaluronic acid, which primarily manage symptoms rather than halting the underlying cartilage degradation. For those with severe disease, the only recourse is often total knee replacement surgery—an invasive, costly procedure with long recovery times and, in many areas, dauntingly long waiting lists.

This significant unmet medical need creates a vast market for a therapy that can do more than just mask pain. The China osteoarthritis injectables market alone was valued at over $250 million in 2023 and is projected to nearly double by 2030. AlloJoin® enters this landscape not as another symptomatic treatment, but as a potential disease-modifying agent, aiming to repair damage and alter the disease's trajectory.

A Biotech Power Play Forging Market Dominance

The partnership between ElpasBio and Fosun Kairos is a calculated strategic alliance, pairing cutting-edge science with proven commercial prowess. ElpasBio, a 2023 spin-off from AbelZeta Pharma, brings over 15 years of focused expertise in stem cell research. Its core product, AlloJoin®, is the culmination of this work, protected by independent intellectual property rights. However, developing a groundbreaking therapy is only half the battle; bringing it to market requires a different set of skills.

This is where Fosun Kairos enters the picture. As the core cell therapy platform of Fosun Pharma, it holds a unique and powerful position in China's biotech ecosystem. In 2021, Fosun Kairos achieved a landmark "from zero to one" breakthrough by successfully launching Yikaida, the first-ever approved CAR-T cell therapy in China. This experience provided them with an invaluable playbook for navigating China’s complex regulatory pathways, establishing sophisticated cold-chain logistics, educating physicians, and securing market access for highly advanced, high-cost therapies.

"Fosun Kairos carries extensive experience in the commercialization of cell therapies in China, providing a strong foundation for a robust and mutually beneficial partnership," said Tony (Bizuo) Liu, Chairman of ElpasBio. He highlighted the therapy's advanced status, noting, "AlloJoin® is the first stem cell drug approved in China to enter into a Phase III pivotal clinical trial with the disease modifying potential for the treatment of KOA."

For Fosun Kairos, the deal diversifies its portfolio beyond oncology and into the vast market of regenerative medicine for degenerative diseases. Wenjie Zhang, Chairman of Fosun Kairos, echoed the sentiment of mutual benefit. "ElpasBio is a recognized leader in stem cell therapies, with more than a decade of dedicated expertise in the field," he stated. "By combining Fosun Kairos's commercialization capabilities in cell therapy, we believe this product candidate with the disease-modifying potential can benefit a broader population of patients with KOA in China."

Under the agreement, ElpasBio will receive an upfront payment plus future milestone payments, providing non-dilutive capital to continue its work. Crucially, ElpasBio retains responsibility for development, manufacturing, and regulatory affairs, while also holding all commercialization rights outside of the Greater China territories, preserving its significant long-term global potential.

The Science of Regeneration: An "Off-the-Shelf" Solution

At the heart of this collaboration is AlloJoin® (lotazadromcel), an advanced therapy derived from ElpasBio’s proprietary technology platform. It is an allogeneic therapy, meaning it is sourced from the adipose (fat) tissue of qualified, healthy donors and can be manufactured at scale. This "off-the-shelf" nature is a critical advantage, distinguishing it from autologous therapies that require harvesting a patient's own cells, a more complex, costly, and time-consuming process.

The therapy utilizes human adipose-derived mesenchymal stem cells (haMPCs), which are known for their powerful regenerative and immunomodulatory properties. When injected into the knee joint, the proposed mechanism is twofold: the cells work to suppress the chronic inflammation that drives pain and further cartilage destruction, while also signaling the body to promote the repair of damaged tissue.

The promise of this approach has been borne out in early-stage clinical trials. Completed Phase I and Phase II studies demonstrated a favorable safety profile for AlloJoin® and, importantly, showed significant improvements in knee pain and stiffness for KOA patients. These positive results paved the way for the ongoing Phase III pivotal trial in China, a final step required before seeking regulatory approval from the National Medical Products Administration (NMPA). If successful, AlloJoin® could become the world's first approved regenerative medicine product that can definitively modify the progression of knee osteoarthritis, fundamentally changing the standard of care.

Paving the Way for a New Era in Chinese Biotech

This deal is more than just a single product partnership; it is emblematic of China's rapid ascent as a global leader in the development and commercialization of advanced therapies. For years, the country was viewed primarily as a large market and manufacturing base. Now, it is an epicenter of innovation and a critical proving ground for the future of medicine.

The NMPA has made concerted efforts to streamline its regulatory processes for innovative drugs, creating a viable and increasingly efficient pathway for complex biologics like cell and gene therapies. The successful approval and launch of CAR-T therapies served as a crucial precedent, demonstrating that a robust framework is in place. The progress of AlloJoin® as the first stem cell drug for KOA to reach Phase III status further solidifies this pathway, providing a blueprint for other regenerative medicine candidates to follow.

The ElpasBio-Fosun Kairos collaboration leverages this new ecosystem perfectly. It combines domestic scientific leadership and manufacturing with sophisticated, locally-honed commercialization expertise. This model not only accelerates access for Chinese patients but also validates the technology on a major world stage, potentially expediting future development and approvals in other global markets. As China continues to build its capabilities from research and development to market launch, such partnerships are likely to become a defining feature of the global biopharmaceutical landscape.