ZHEJIANG, Nov 18, 2010 (SinoCast Daily Business Beat via COMTEX) --
Novartis is still waiting for the approval of China's Ministry of Commerce for it to acquire the privately-run Zhejiang Tianyuan Bio-Pharmaceutical Co., Ltd. (Tianyuan Bio-Pharm), one of the largest vaccine producers based in China's Mainland.
Actually, Novartis as early as last November had made an announcement saying that is would become the controlling shareholder of Tianyuan Bio-Pharm with an 85% stake in the latter. Still, the foreign buyer by far has not received the Chinese regulatory approval yet. Once implemented, this will be the first acquisition in China's vaccine industry. Reports said that the acquisition will totally cost USD 125 million. The result is expected to come out in the coming six months.
As an important vaccine production enterprise of China, Tianyuan Bio-Pharm over 2009 realized the sales revenues of USD 25 million. As for Novartis, it is the world's fifth largest vaccine maker, with the presence in 85 nations across the world. Currently, China is the world's third biggest vaccine market, with the annual sales revenues exceeding USD 1 billion. With the medical reform and the medical market expansion of the country, more business opportunities are expected to emerge in Chinese vaccine market.
The acquisition of Tianyuan Bio-Pharm will be an important step for Novartis to enter the vaccine market of China's Mainland. The buyer vows to further boost the vaccine production business in China and plans to invest a total of USD 1.25 billion for establishing a R&D center and a manufacturing plant in China, according to its CEO.
Another Swiss pharmaceutical maker Nycomed is also eyeing the fast-growing market of China. The company is to acquire a 51.34% stake of Techpool Bio-Pharm Co., Ltd. at a price of USD 210 million. Based in the southern coastal province Guangdong, Techpool Bio-Pharm is specialized in the R&D, manufacturing and marketing of biological medicines. Over the past year, Guangzhou-based Techpool Bio-Pharm gained the sales revenues of CNY 450 million and the figure is expected to reach CNY 570 million this year.
Nycomed is a privately-run pharmaceutical company headquartered in Zurich. Last year, the Swiss company reaped the sales revenues of EUR 3.2 billion and the pretax profits of EUR 110 million. In China, it runs Nycomed China, based in Shanghai, the country's financial center.
After the acquisition this time, Nycomed China and Techpool Bio-Pharm are to continue operating business
independently; but they will establish different kinds of alliances to boost five major pharmaceutical brands. Next year, the combined sales revenues of the two China-based companies are expected to reach CNY 1.5 billion.
(USD 1 = CNY 6.64)
Source: www.nf.nfdaily.cn (November 18, 2010)
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