HUTCHMED (China) Limited (HCM) has disclosed its decision to divest its 45% equity interest in Shanghai Hutchison Pharmaceuticals Limited (SHPL) through agreements totaling around US$608 million in cash. The buyers are GP Health Service Capital Co., Ltd and Shanghai Pharmaceuticals Holding Co., Ltd.
SHPL focuses on the manufacture, sale, and distribution of self-branded prescription medications in China, mainly targeting cardiovascular ailments. This entity was formed as a 50:50 joint venture between HUTCHMED and Shanghai Pharma in 2001.
Proceeds from the sale of SHPL will fuel HUTCHMED’s internal pipeline expansion and advance its primary business strategy.
According to the agreements, GP Health Service Capital will acquire a 35% stake in SHPL from HUTCHMED for about US$473 million in cash. Meanwhile, Shanghai Pharma will purchase a 10% stake for approximately US$135 million in cash, ultimately increasing its holding in SHPL to 60%. GP Health Service Capital reserves the flexibility to nominate an investment fund to purchase up to 10% of its newly acquired interest in SHPL. Post-transaction, HUTCHMED will maintain a 5% equity interest in SHPL.
HUTCHMED anticipates realizing a pre-tax gain of approximately US$477 million from this sale. The completion of these transactions is projected by the close of the first quarter of 2025.
The material has been provided by InstaForex Company -
www.instaforex.com
