Belgium-based biopharmaceutical company UCB has signed a deal to divest its mature neurology and allergy businesses in China to CBC Group and Mubadala for $680m.
CBC is a Singapore-based investment firm focused on investment in the healthcare industry, and Mubadala is Abu Dhabi’s state-owned investment and asset management company.
UCB’s planned divestiture includes its neurology drugs Keppra, Vimpat, Neupro, and allergy drugs Zyrtec and Xyzal, along with its Zhuhai manufacturing site.
The proposed transaction is expected to close in Q4 2024, subject to certain closing conditions, including required anti-trust approvals and other customary conditions.
UCB CEO Jean-Christophe Tellier said: “In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China.
“Our dedication to serving patients with unmet needs in China remains steadfast. 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.
“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.”
UCB said that it has developed its late-stage pipeline into several new product launches worldwide and is currently focusing on its growth to last for more than a decade.
The company decided to revise UCB China’s focus and sell the mature neurology and allergy business to a reputable investor with healthcare expertise.
UCB said that the sale will allow the company to focus on innovation and partnerships, and to align its strategic goals with the growing demands of the Chinese market.
It allows more patients to benefit from its previous innovations, as CBC Group and Mubadala develop and operate the new neurology company in China, said the Belgian drugmaker.
Lazard served as financial advisor and Freshfields Bruckhaus Deringer as legal advisor to UCB, while PJT Partners served as financial advisor, and Clifford Chance served as legal advisor to CBC Group and Mubadala on the transaction.
CBC Group CEO Fu Wei said: “This strategic deal aligns with CBC’s strategy of investing in high-potential companies with quality products, strong brand equity, dedicated talents, and steady growth outlook.
“It will complement our existing healthcare ecosystem, serving as an anchor asset to further build out a leading integrated CNS biopharma platform in China that will deliver gold-standard treatment to more patients nationwide.”
Mubadala China head Mohamed Albadr said: “We are thrilled to partner with CBC Group to support the next phase of UCB’s platform as it scales to a leading entity in China and delivers transformative medicines to the markets.”
