(Bloomberg) -- Otsuka Holdings Co. is considering options for its holding in Hong Kong-listed MicroPort Scientific Corp., including selling its stake in the medical device maker, according to people familiar with the situation.

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The Japanese drugmaker is working with an adviser on a review of its minority stake after receiving preliminary interest from prospective investors, the people said, asking not to be identified discussing a private matter.

MicroPort’s shares have tumbled over the past three years and the company has warned about its debt and ability to continue as a going concern, saying in its latest interim report that it was trying to improve liquidity with more stringent cost controls, including cutting the research and development budget.

Otsuka was MicroPort’s controlling shareholder when it listed in Hong Kong in 2010. As of June 30 this year, its stake was roughly 20.9%, which is worth about $300 million based on MicroPort’s current market value of $1.4 billion.

At a peak in 2021, MicroPort’s market value was HK$130 billion ($16.7 billion).

Otsuka’s deliberations are ongoing and may not lead to a sale, the people said. A company representative said there was no information to disclose.

MicroPort’s products include cardiovascular, orthopedic and other medical devices, as well as surgical robots. The Shanghai-based company reported about $559 million in revenue and a loss of $97 million for the first half of 2024. Hillhouse Capital Advisors is also a shareholder, holding an 8.4% stake.

MicroPort’s shares surged more than 70% over four trading days around the turn of this month, but they have fallen sharply again in recent days, including a 4.5% slide Thursday, taking their loss this year to 29%.

Otsuka’s shares have climbed more than 100% since the start of 2023.

(Updates with Thursday’s share move in penultimate paragraph.)

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