Chongqing Yaoyou, a Subsidiary of Fosun Pharma, Acquires GSK Suzhou for Up to RMB 250 Million to Gain Lamivudine Tablet Production Line for Chronic Hepatitis B Treatment

Touzhong Health, July 9 — According to the announcement by Fosun Pharmaceutical (600196.SH), on July 8, Chongqing Yaoyou Pharmaceutical Co., Ltd. (“Chongqing Yaoyou”), a subsidiary controlled by Fosun Pharmaceutical, and GlaxoSmithKline (China) Investment Co., Ltd. (“GSK”) signed an acquisition agreement.

The agreement indicates that Chongqing Yaoyou Pharmaceutical Co., Ltd. intends to acquire 100% equity interest in GlaxoSmithKline Pharmaceuticals (Suzhou) Co., Ltd., a wholly-owned subsidiary of GSK, for no more than RMB 250 million. Upon completion of the equity transfer, Fosun Pharmaceutical and Chongqing Yaoyou will hold the drug registration approval for lamivudine tablets used in the treatment of chronic hepatitis B, along with the production license and GMP certificate for the associated manufacturing facilities.

The announcement indicates that lamivudine tablets are primarily used in the antiviral field, demonstrating potent inhibitory activity against the hepatitis B virus (HBV), and exhibit strong synergy with the existing therapeutic portfolio of Chongqing Yaoyou Pharmaceutical Co., Ltd. The acquisition of the relevant production facilities will facilitate further expansion of the Group’s pharmaceutical manufacturing infrastructure in East China and enhance its drug production capacity.

Since the beginning of this year, Fosun Pharmaceutical has successively announced two acquisition plans related to the pharmaceutical industry.

On January 25, 2019, Fosun Pharmaceutical issued an announcement stating that its controlled subsidiary intends to grant a new option to the founding shareholder family of Gland Pharma Limited. Under this option, the family has the right, subject to the fulfillment of relevant conditions, to require the acquirer to purchase no more than 3.4212 million shares of Gland Pharma held by them, representing approximately 22.08% of the total number of issued shares of Gland Pharma currently in circulation, with the maximum transfer consideration not exceeding USD 470 million. Gland Pharma is a pharmaceutical company based in Hyderabad, India, primarily engaged in the manufacturing and production of injectable pharmaceutical products.

On June 25, 2019, Fosun Pharmaceutical issued an announcement stating that its controlled subsidiary, Jinzhou Aohong Pharmaceutical Co., Ltd., intends to acquire a total of approximately 70.56 million shares (representing approximately 97.82% of the total share capital) of Chengdu Lister Pharmaceutical Co., Ltd. through participation in public listing auctions and via agreement, with a total investment not exceeding RMB 747 million.