PARIS/SINGAPORE (Reuters) – UCB, a Belgian biopharmaceutical firm, said on Monday that it will sell its Chinese neurology and allergy business to asset management group CBC and Abu Dhabhi’s Mubadala for $680 million.
The deal includes UCB’s neurology portfolio comprising drugs like Keppra, Vimpat and Neupro and anti-allergy medicines Zyrtec and Xyzal – commonly used to treat watery eyes and runny nose.
The Belgian firm will also sell a manufacturing site in Zhuhai city.
UCB in its statement said there would be no impact on its forecast for 2024.
“In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China,” said Jean-Christophe Tellier, chief executive of UCB.
The deal will allow the company to focus its efforts on innovation and partnerships, ensuring that its strategic goals align with the evolving demands of the Chinese market, it said.
“The demand for central nervous system products in China has been increasing over the past decade,” said Fu Wei, chief executive of CBC.
“This strategic deal aligns with CBC’s strategy of investing in high-potential companies with quality products, strong brand equity, dedicated talents and steady growth outlook,” he added.
The deal added to CBC and Mubadala’s partnership, where the Abu Dhabi-based sovereign investor in October last year invested in CBC’s APG-backed Chinese life-science real estate investment platform.
In April 2023, CBC and Mubadala were the lead investors in a $315 million fundraising round for a Chinese biopharma company called Hasten.
Headquartered in Singapore, CBC is Asia’s largest healthcare-focused asset management firm with assets under management of $8.8 billion, according to the statement.
UCB’s shares have jumped 104% year-to-date, giving it a market value of $34.8 billion on Monday, according to LSEG data.
(Reporting by Geert De Clercq in Paris and Yantoultra Ngui in Singapore, editing by Tassilo Hummel and Sonia Cheema)
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