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Novartis buys share to expand business
By Ding Yining |
November 5, 2009, Thursday
|
Print Edition
Print Edition
NOVARTIS AG will expand its human vaccine business in China by acquiring an 85-percent stake in a local vaccine company for 850 million yuan (US$125 million) in cash.
With the investment in Zhejiang Tianyuan Bio-Pharmaceutical Co, the Switzerland-based drug maker expects to boost its limited presence in the domestic vaccine industry, the company said in a statement.
"The cooperation with Tianyuan is an important step in our strategy to enhance the prevention of diseases in China with high-quality products," Daniel Vasella, chairman and CEO of Novartis, said in the statement.
The deal, pending regulatory approval, will enable the two parties to invest in vaccine innovation and manufacturing as well as introduce Novartis' vaccine into the domestic market.
The deal came just after Novartis said it would invest an additional US$1 billion to expand its research and development center in Shanghai and make it the company's third-largest R&D center, behind those in Switzerland and the United States.
Privately-owned Tianyuan was founded by Ding Xiaohang in 1993 in Zhejiang Province. Ding, also the chairman of Tianyuan, will hold a minority stake and continue to lead the company's operations after the acquisition is done.
China, the third-largest vaccine market globally, saw annual industry sales of more than US$1 billion and is expected to continue to grow by double digits in the future.
Novartis has also signed a memorandum of strategic cooperation with the Ministry of Health on Tuesday to begin a three-year community health program in China.
With the investment in Zhejiang Tianyuan Bio-Pharmaceutical Co, the Switzerland-based drug maker expects to boost its limited presence in the domestic vaccine industry, the company said in a statement.
"The cooperation with Tianyuan is an important step in our strategy to enhance the prevention of diseases in China with high-quality products," Daniel Vasella, chairman and CEO of Novartis, said in the statement.
The deal, pending regulatory approval, will enable the two parties to invest in vaccine innovation and manufacturing as well as introduce Novartis' vaccine into the domestic market.
The deal came just after Novartis said it would invest an additional US$1 billion to expand its research and development center in Shanghai and make it the company's third-largest R&D center, behind those in Switzerland and the United States.
Privately-owned Tianyuan was founded by Ding Xiaohang in 1993 in Zhejiang Province. Ding, also the chairman of Tianyuan, will hold a minority stake and continue to lead the company's operations after the acquisition is done.
China, the third-largest vaccine market globally, saw annual industry sales of more than US$1 billion and is expected to continue to grow by double digits in the future.
Novartis has also signed a memorandum of strategic cooperation with the Ministry of Health on Tuesday to begin a three-year community health program in China.
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