South Korea’s GC Biopharma Corp. has signed a share purchase agreement to sell its Hong Kong subsidiary to a subsidiary of China Resources Pharmaceutical Group. The deal, announced on Wednesday, is valued at 350 billion won ($254 million). This strategic divestiture is part of GC Biopharma’s plan to bolster its financial stability and secure funds for future business investments.
China Resources Pharmaceutical Group, a significant player in the pharmaceutical sector with $34 billion in sales last year, will leverage its extensive distribution network in China to accelerate GC Biopharma’s market penetration. The agreement also includes a contract for GC Biopharma to supply blood product Albumin and genetically recombinant hemophilia treatment GreenGene F, produced at its Ochang plant in North Chungcheong Province. This supply deal is estimated to be worth 85 billion won ($61.7 million).
Furthermore, GC Biopharma plans to maximize the efficiency of its blood product production by exporting immunoglobulin to the US and Albumin to China. Additionally, China Resources Pharmaceutical Group will distribute GC Wellbeing’s hyaluronic acid fillers in China, expanding GC Biopharma’s footprint in the growing Chinese healthcare market.
This transaction marks a significant step for GC Biopharma in enhancing its operational focus and capitalizing on growth opportunities within China, supported by a robust partner with an established market presence.
