* Acquisition includes allergy drugs Zyrtec and Xyzal. Transaction is expected to close in the fourth quarter. UCB will focus on innovation and partnerships. PARIS/SINGAPORE, Aug 26 (Reuters) – Belgian biopharmaceutical company UCB (UCB.BR) said on Tuesday it was selling its China neurology and allergy business to Singapore asset management group CBC and Abu Dhabi sovereign investor Mubadala for $680 million.
The deal includes UCB’s neurology portfolio, including medicines such as Keppra, Vinpat and Neupro, as well as anti-allergy drugs Zyrtec and Xyzal, which are often used to treat watery eyes and runny nose.
The Brussels-listed company also plans to sell its manufacturing base in Zhuhai.
UCB said in a statement that its 2024 outlook is unaffected and the transaction is expected to close in the fourth quarter.
“In the short term, UCB is looking to launch new medicines in China in the areas of immunology, neurology and rare diseases,” UCB CEO Jean-Christophe Tellier said.
The company said the deal will enable it to focus on innovation and partnerships, and ensure its strategic goals are aligned with the changing demands of the Chinese market.
Undeterred by rising U.S.-China tensions, some of the world’s largest drugmakers are exploring deals in China to replenish their drug pipelines and expand their presence in the world’s second-largest pharmaceutical market, according to industry executives and investment bankers.
“Demand for central nervous system products in China has been growing over the past decade,” said CBC CEO Hu Wei.
“This strategic transaction is aligned with CBC’s strategy of investing in high-potential companies with high-quality products, strong brand equity, committed people and stable growth prospects,” he added.
CBC is Asia’s largest healthcare focused asset manager with assets under management of $8.8 billion, according to a statement.
The deal further strengthens CBC’s partnership with Mubadala, after the Abu Dhabi-based investor invested in CBC’s APG-backed China life sciences real estate investment platform last October.
In April 2023, CBC and Mubadala were lead investors in a $315 million funding round for Chinese biopharmaceutical company Hasten.
UCB’s shares have risen 104% since the start of the year, giving it a market capitalisation of $34.8 billion on Monday, according to LSEG data.
Lazard is acting as financial advisor to UCB, with Freshfields Bruckhaus Deringer LLP acting as legal advisor. PJT Partners is acting as financial advisor to CBC and Mubadala, with Clifford Chance acting as legal advisor, according to the statement.
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Reporting by Geert de Clercq in Paris and Yantltora Ngui in Singapore; Editing by Tassilo Hummel, Sonia Cheema and Jamie Freed
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