It appears that restructuring is the trend for many big pharmaceutical companies in the modern era, and Belgium-based UCB is no exception.
UCB announced that it would be selling its neurology and allergy operations in China to CBC Group, a regional healthcare asset management firm, and Mubadala, an investment group based in Abu Dhabi.
The deal, which includes medications such as Keppra and Vimpat for treating seizures, Neupro for restless leg syndrome and Parkinson’s disease, and Zyrtec and Xyzal for allergies, is expected to bring in a total of $680 million for UCB.
As part of the divestment agreement, UCB is also selling a production facility located in Zhuhai, Guangdong, China, according to a press statement issued by the company.
UCB states that the transaction will enable more patients to benefit from the firm’s previous innovations. The company also mentions that CBC and Mubadala are collaborating to establish and run a new premier neurology company in China, leveraging UCB’s pharmaceutical portfolio and manufacturing facility.
“In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China. Building on our 28-year presence in the country, we are committed to driving patient outcomes through continued collaboration with local partners and fostering innovation,” said CEO Jean-Christophe Tellier.
UCB confirmed that there will be no impact on its financial projections for 2024, and the transaction is anticipated to be finalized in the fourth quarter.
The divestiture by UCB is part of a larger trend in which multinational pharmaceutical companies have recently chosen to partner with local firms for the commercialization of their medications in China.
In November, Pfizer granted exclusive rights to Keyuan Pharma, a pharmaceutical company based in Shanghai, for the promotion and marketing of its pneumococcal vaccine Prevenar 13, known as Prevnar 13 in the U.S.
Shortly before that, GSK signed a contract with Chongqing Zhifei Biological Products, the Chinese distributor of Merck’s HPV vaccine Gardasil, for the distribution of its Shingrix shingles vaccine.
Sanofi and Biogen have both made adjustments to their Chinese operations in recent months.
Meanwhile, in the wake of the BIOSECURE Act, which seeks to exclude specific Chinese biotech equipment and suppliers from the U.S. market due to national security concerns, some drugmakers, particularly those in the U.S., are considering avoiding Chinese partners.
A poll conducted by L.E.K. earlier this summer found that trust among U.S.-based life sciences organizations in collaborating with Chinese enterprises has significantly decreased. With non-American enterprises, L.E.K. observed a less dramatic decline in trust, suggesting the issue is less severe elsewhere.
