Fosun Pharmaceutical Proposed To Purchase GSK Suzhou With $36.7 Million

Fosun Pharmaceutical’s subsidiary in Chongqing proposed to use no more than 36.7 million dollars to purchase GSK’s company in Suzhou. After this transaction, Fosun Pharmaceutical will obtain a production license and GMP certificate for medicines for the treatment of chronic hepatitis B “Lamivudine”.

GSK Suzhou made a great profit in 2018, its revenue was around 96.4 million dollars and its net profits were around 10.8 million dollars. In 1999, Lamivudine was available in China and quickly became the most popular western medicine for treating hepatitis B. In just a few years, the sales reached 1 billion. However, with the expiration of Lamivudine's global patents in September 2006 and the continued selling of generic drugs, Lamivudine's competitiveness is gradually declining.

For this acquisition, Fosun Pharmaceutical's subsidiary in Chongqing will obtain many production equipments that will improve Fosun Pharmaceutical’s production abilities. Both parties expect the transaction to be completed by the end of November 2019.