Hong Kong-listed 3SBio continues along its expansionary path with a move to raise the stake it holds in Shanghai CP Guojian Pharmaceutical. The latest acquisition is another step in a push toward full integration of the two companies.
Through its non-wholly-owned subsidiary Shanghai Hongshang, 3SBio, of Shenyang, acquired a 38.5% equity interest in Lansheng Guojian, which in turn holds a 41.69% equity interest in CP Guojian. The deal is estimated at HK$989 million ($150 million).
In a statement to the Hong Kong Stock Exchange, 3SBio said it "intends to acquire direct and indirect further equity interests in CP Guojian and to expand its product portfolio through selective acquisitions." It will use about HK$2 billion for additional acquisitions.
3SBio added in the release that CP Guojian "will provide a manufacturing platform for the company's phase I monoclonal antibody anti-TNF alpha candidates for the treatment of rheumatoid arthritis."
The company also said that when the deal is complete, it will be able to "integrate its existing oncology sales team with (CP Guojian's) rheumatology sales team" to market the combined oncology and rheumatology product candidates in the pipeline and "strengthen its research and development capabilities for monoclonal antibody products."
- here's the release to the HKEx (PDF)