UCB, the Brussels-based biopharmaceutical giant, has announced its decision to sell its Chinese neurology and allergy business in a significant $680 million deal. The transaction involves the sale of UCB’s neurology portfolio, including popular medications such as Keppra, Vimpat, and Neupro, as well as anti-allergy drugs like Zyrtec and Xyzal. In addition, UCB will be offloading a manufacturing facility located in Zhuhai.
The buyer consortium includes Singapore-based asset management firm CBC and Mubadala, the sovereign investor from Abu Dhabi. This sale is set to close in the fourth quarter of 2024 and is not expected to alter UCB’s financial outlook for the year, according to a company statement.
UCB CEO Jean-Christophe Tellier emphasized that this move allows the company to focus on its strategic goals, including innovation and partnerships, particularly in the fields of immunology, neurology, and rare diseases in China. The deal aligns with UCB’s broader aim to adapt to the evolving demands of the Chinese pharmaceutical market.
The transaction underscores a broader trend among global drugmakers, who, despite ongoing Sino-U.S. tensions, are actively seeking opportunities in China’s expansive pharmaceutical sector. This market, which is the second-largest in the world, continues to attract significant investment and interest.
CBC, the largest healthcare-focused asset management firm in Asia with $8.8 billion in assets under management, views this acquisition as a strategic fit. “The demand for central nervous system products in China has been increasing over the past decade,” said CBC CEO Fu Wei. He further noted that the deal is consistent with CBC’s strategy of investing in high-potential companies with strong brands and growth prospects.
The sale further deepens the collaboration between CBC and Mubadala. Last October, Mubadala invested in CBC’s Chinese life-science real estate platform, and in April 2023, the two entities were major investors in a $315 million funding round for Chinese biopharma company Hasten.
UCB’s shares have surged 104 percent year-to-date, reflecting strong investor confidence and a market value of $34.8 billion as of Monday. Lazard is serving as the financial adviser to UCB, while Freshfields Bruckhaus Deringer is providing legal counsel. For CBC and Mubadala, PJT Partners is the financial adviser, and Clifford Chance is handling legal matters.
This strategic divestiture by UCB marks a pivotal moment as it refocuses its efforts on high-growth areas while leveraging its robust position in the global pharmaceutical landscape.
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