Belgium-based biopharma UCB is selling its Chinese neurology and allergy business to Singapore asset management firm CBC Group and Abu Dhabi investment company Mubadala.
Belgium’s UCB is eyeing a boost in innovation and partnerships in China, but first will divest its mature neurology and allergy business in the region, including approved assets Zyrtec and Xyzal, for $680 million—the companies announced Monday.
CBC Group and Mubadala Investment Company will pick up the two approved allergy drugs in addition to seizure medicines Keppra and Vimpat, as well as Neupro for Parkinson’s disease. The terms also include a manufacturing site in Zhuhai, China. The medicines had combined net sales of $146.3 million (131 million euros) in China for 2023.
The deal will not impact UCB’s financial guidance for 2024, according to the announcement. With the legacy assets out of the way, UCB will focus its efforts in China on more innovation.
“In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China,” CEO Jean-Christophe Tellier said in a statement.
UCB has been operating in China for 28 years. Tellier called CBC Group, an Asian healthcare-focused asset management group with $8.8 billion under management, and Mubadala, an Abu Dhabi-based investment company, the ideal partners for the allergy portfolio’s next phase.
The investment firms are hoping to capitalize on the growing demand for central nervous system products in China over the past decade, according to Fu Wei, CEO of CBC Group.
“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,” Wei said in a statement.
The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
