Pharmaceutical Business review

Grifols to acquire Tiancheng Pharmaceutical for $1.3bn

Acquisition of Biotest will significantly strengthen Grifols’ industry capabilities. Credit: Gerd Altmann from Pixabay.

Spanish healthcare firm Grifols has agreed to acquire 100% stake in Tiancheng (Germany) Pharmaceutical from Tiancheng International Investment for $1.289bn (€1.1bn).

Tiancheng Pharmaceutical owns 89.88% of Biotest ordinary shares and 1.08% of Biotest preferred shares.

Additionally, Grifols has launched a voluntary public tender to acquire Biotest’s remaining ordinary and preferred shares from all outstanding ordinary and preferred shareholders for $50.4 (€43) and $43.37 (€37), respectively, in cash.

After completion of the deal, the company will indirectly own Biotest’s 17,783,776 ordinary shares, which represents around 89.88% of Biotest’s voting rights as well as 44.94% of total share capital.

Grifols will also own Biotest’s 214,581 preferred shares that represent approximately 0.54% of the total share capital.

Headquartered in Dreieich, Germany, Biotest develops, manufactures and markets biological medicinal products with applications in hematology, clinical immunology and intensive care.

Its current portfolio includes 12 novel proteins with a global commercial footprint in over 90 countries.

The deal will significantly strengthen Grifols’ industry capabilities by increasing plasma therapies availability and enhancing patient access to plasma-derived medicines across the world.

The transaction will also expand and diversify the company’s plasma sourcing with the addition of 26 European plasma centres

Grífols co-CEO Raimon Grífols Roura said: “This unique opportunity will allow Grifols and Biotest to mark a new milestone while shaping the plasma industry.

“It will enlarge our existing portfolio of plasma-derived therapies and fast-track the development of new products, with a concerted focus on delivering value to patients, shareholders and other key stakeholders. We look forward to partnering with the Biotest team.”

Subject to regulatory approvals and other conditions, the transaction is expected to be concluded by the end of the first semester of 2022.