The shareholding is to be acquired in an all-cash, combined Stock Purchase Agreement by Takeda’s joint venture partner in Techpool: Shanghai Pharmaceutical Holding Co. Ltd. (Shanghai Pharma SSE ticker: 601607, HKEx ticker: 2607) and a fund managed by SFund International Investment Fund Management Limited, a wholly-owned subsidiary of Guangzhou Industrial Investment Fund Management Co., Ltd (“the Fund”).
The agreement remains subject to approval from the State Administration for Market Regulation in the People’s Republic of China. The Base Payment for the purchase price of Takeda’s shareholding is US$280 million.
Takeda China president and Takeda Greater China area head Sean Shan said: “This agreement provides Takeda with even greater focus to continue to meet the unmet needs of patients in China, and maintain our position as ‘best-in-class’ in our global therapeutic areas of focus, especially Gastroenterology and Oncology.
“Takeda is committed to China and will continue to strive to keep patients at the center of everything we do, both locally and across the globe.”
The Emerging Markets, including China, are a key growth driver for Takeda with recent local government reforms by China’s health authorities looking set to accelerate and reward innovation.
In partnership with them, Takeda aims to launch up to seven (7) innovative products in the country within the next five years, to help meet the unmet needs of patients.
Shanghai Pharma chairman Zhou Jun said: “This acquisition marks a strategic milestone for Shanghai Pharma in developing into a branded pharmaceutical manufacturer, and in building a first-class, domestic marketing organization.
“We believe via acquisitions such as this, and our overall strategy, Shanghai Pharma has an important role to play in the China government’s ‘Healthy China’ policy.”
Techpool’s portfolio of innovative medicines include: Roan (Ulinastatin for Injection), a treatment for acute and chronic pancreatitis, Kallikrein for mid-moderate acute thrombotic cerebral infarction, and Kailikang (Urinary Kallidinogenase for Injection). These will remain under the management of Techpool.
In addition, all current Techpool operations, and company assets – including its manufacturing facility in Guangzhou province – will continue to be owned and managed by Techpool, and its current staff will be retained as Techpool employees.
Shan said: “The divestment to our current JV partners also ensures the uninterrupted supply of Techpool’s portfolio of medicines to patients, who are our primary focus.
Zhou said: “Shanghai Pharma will work closely with Techpool to break new ground and unleash the growth potential of its core products through targeted market access, marketing management systems, and a nationwide distribution network so as to create momentum to maintain sustainable growth.
Upon completion of the transaction, the Fund will purchase approximately 49% of the Takeda shareholding, and Shanghai Pharma will acquire approximately 51% of it. As a result, Shanghai Pharma’s ownership of Techpool will rise to about 67% from around 41%, making them majority shareholders.
The Fund’s purchase will result in indirect ownership of around 25% of Techpool.The outstanding 8% of Techpool’s shares will remain unchanged under the ownership of the Guangzhou Financial Innovation Investment Holding Co., Ltd.,a wholly-owned subsidiary of Guangzhou Industrial Investment Fund Management Co., Ltd.
Further financial details of the agreement will only be disclosed in accordance with any associated regulatory requirements.
Source: Company Press Release.