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In a significant move that underscores its growing focus on Asian markets, Abu Dhabi’s sovereign wealth fund Mubadala has made a substantial investment in China’s pharmaceutical sector. Partnering with healthcare-focused asset management group CBC, Mubadala has acquired 100% of UCB Pharma’s ‘mature’ business in China.

Key Details of the Acquisition

• Target Company: UCB Pharma, a Belgian biopharmaceutical company
• Acquisition Scope:
  1. UCB’s neurology portfolio (Keppra, Vimpat, Neupro)
  2. Allergy portfolio (Zyrtec, Xyzal) in Mainland China
  3. UCB’s Zhuhai manufacturing site
• 2023 Performance: Combined net sales of 131 million euros for these medicines in China
• Expected Closing: Q4-2024

Strategic Importance of the Deal

1. Market Position: UCB holds a leading position in immunology, neurology, and rare disease markets in China.
2. Growth Potential: The company is strategically positioned for growth in its Central Nervous System originator drug portfolio.
3. Mubadala’s Asian Expansion: Aligns with Mubadala’s vision to expand its footprint across Asia through selective investments in high-growth sectors.
4. Healthcare Focus: Pharma carve-outs are at the forefront of Mubadala’s investment strategy in the region.

Mubadala’s Strategic Vision

Mohamed Albadr, Head of China at Mubadala, stated: “We are thrilled to partner with CBC Group to support the next phase of UCB’s platform as it scales to a leading entity in China and delivers transformative medicines to the markets.”

This collaboration follows Mubadala’s Hasten Biopharma acquisition, reinforcing its plan to establish dedicated platforms targeting unmet needs in China and broader Asian healthcare markets.

UCB’s Future in China

Despite the sale of its mature business, UCB remains committed to the Chinese market:

• Short-term Plans: Launch novel medicines in immunology, neurology, and rare diseases in China.
• Long-term Commitment: Build on its 28-year presence in the country.
• Collaboration: Continue partnerships with local entities to foster innovation.

Jean-Christophe Tellier, CEO at UCB, emphasized the company’s dedication to driving patient outcomes through ongoing collaboration and innovation in China.

Implications for the Chinese Pharmaceutical Market

This deal signifies:

1. Growing international interest in China’s pharmaceutical sector
2. The potential for increased innovation and competition in key therapeutic areas
3. Possible improvements in manufacturing and distribution of essential medicines in China

As Mubadala expands its healthcare investments in Asia, this acquisition could catalyze further development and accessibility of critical medications in the Chinese market.