Biopharmaceutical company UCB has entered a divestment agreement in China to sell, divest and license its mature neurology and allergy business to CBC Group and Mubadala in a deal valued at $680m.
The neurology portfolio includes Keppra, Vimpat and Neupro and the allergy portfolio comprises Zyrtec and Xyzal.
UCB is also divesting its Zhuhai manufacturing site.
CBC Group is an Asian healthcare-focused asset management group. Mubadala is an investment company based in the United Arab Emirates.
By divesting its mature business in China, UCB aims to re-align its operations with the dynamic needs of the Chinese pharmaceutical market.
The strategic move will enable the company to concentrate on areas of innovation and foster partnerships, ensuring alignment with its long-term strategic objectives in the region.
In 2023, the combined net sales of mature business assets in China reached €131m.
The deal will conclude in the fourth quarter (Q4) of 2024.
The agreement will not affect UCB's financial guidance for 2024. However, subject to the deal's closure, a marginal dilution of the adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) margin is expected for 2025.
The company maintains its adjusted EBITDA margin forecast for 2025 at the low end of the low-to-mid-30s percentage range of revenue.
Lazard is serving as financial advisor to UCB for this transaction, with Freshfields Bruckhaus Deringer providing legal counsel.
CBC Group and Mubadala have appointed PJT Partners as their financial advisor and Clifford Chance as their legal advisor.
UCB CEO Jean-Christophe Tellier stated: “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.”
In October 2023, the US Food and Drug Administration (FDA) approved UCB’s BIMZELX (bimekizumab) to treat moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy.
