A major move for CSL with the acquisition of a strategic presence in the fast-growing Chinese plasma manufacturing market.
The company has agreed to acquire an 80 per cent stake in plasma-derived therapies manufacturer Wuhan Zhong Yuan Rui De Biological Products ('Ruide') from the Humanwell Healthcare Group for US$352 million.
"The transaction will provide CSL with a strategic presence in the Chinese domestic plasma fractionation market and complements the leadership position that its CSL Behring business has built over the past 20 years as a provider of imported albumin in China," said CSL in a statment.
According to Goldman Sachs, China’s fast growing plasma products market exceeded $3.3 billion in 2016. The country is also the fastest growing immunoglobulin (Ig) market in the world second only to the US in terms of volume.
Ruide develops, manufactures and commercialises plasma-derived products for the Chinese domestic market. This includes albumin, immunoglobulin (Ig) for IV injection, as well as several hyperimmune Ig products. The company also has a pipeline of multiple coagulation factor products it plans to launch in the coming years, including plasma-derived Factor VIII.
Ruide owns four plasma collection centres and one manufacturing facility in Wuhan. Ruide’s total revenues reached approximately US$30 million in 2016.
“Humanwell is a leading Chinese healthcare company with strong capabilities in pharmaceutical manufacturing, sales and distribution, as well as healthcare services,” said CSL managing director and CEO Paul Perreault.
“CSL is driven by our promise to save lives and protect the health of people around the world. This expansion of our footprint in China through an investment in Ruide supports the delivery of this promise.
“We will contribute our extensive plasma manufacturing expertise with a goal to expand and grow plasma collection capabilities and introduce new products into this high-growth market. In co-operation with Humanwell, we intend to work closely with local regulators and the sector to help improve plasma safety and quality, as well as enhance the plasma donor experience. We will also continue to find ways to extend our partnership with Humanwell in areas of mutual interest.”
Humanwell’s Chairman, Dr Wang Xuehai, added, “We are excited to establish a long-term collaboration with CSL, a global leader in biopharmaceuticals, particularly in the plasma sector. Combining CSL’s advanced technical capabilities with Ruide’s established presence in the Chinese plasma sector will enable the partners to improve access to innovative therapies for patients that need them.”