Belgian pharma giant UCB (Belgian Chemical Union) has confirmed it is selling its China-based neurology and allergy business to two investment groups for $680 million (€608 million).
The deal includes the selling rights to UCB’s portfolio of neurology drugs (Keppra, Vimpat, and Neupro) and allergy drugs (Zyrtec and Xyzal) in mainland China, as well as UCB’s manufacturing site in Zhuhai. Last year, combined net sales for these medicines in China reached €131 million.
The Brussels-headquartered biopharmaceutical company is selling its Chinese business to CBC Group, Asia's largest healthcare-dedicated asset management group, and Mubadala Investment Company, an investment and asset management company owned by the Abu Dhabi government.
UCB has said it is making a strategic shift towards innovation and partnerships in China. Jean-Christophe Tellier, CEO at UCB, said the company remains dedicated to serving patients in China, where it has operated for 28 years.
“We are convinced that the CBC Group and Mubadala are the ideal partners to advance the medicine portfolio and continue to improve the lives of people living with neurology and allergy diseases in mainland China," Tellier said.
The transaction remains subject to certain conditions, including anti-trust clearance, and is expected to close in the final quarter of this year. UCB said that the sale does not impact the company's financial guidance for 2024, and in 2025 (subject to the deal closing) UCB expects a marginal dilution of its adjusted EBITDA margin (a measure of profitability).
Listed on the Belgian stock exchange, UCB generated revenue of €5.3 billion last year. It currently employs around 9,000 people across 40 countries.
