3SBio Acquires Zhejiang Wansheng For US$85 Million

The acquisition of Zhejiang Wansheng expands 3SBio’s product offerings in the dialysis, diabetes and dermatology markets.

AsianScientist (Jul. 30, 2015) – 3SBio Inc., a China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, has acquired the entire equity interest in Zhejiang Wansheng Pharmaceutical Co., Ltd a limited liability company incorporated in China for an aggregate consideration of RMB 528 million (~US$85 million).

“3SBio’s proven capabilities in biologicals, combined with Zhejiang Wansheng’s expertise in small molecule manufacturing, will provide the enlarged group with a flexible platform for addressing the unmet medical needs of patients and their healthcare professionals,” said Dr. Lou Jing, CEO and Chairman of 3SBio.

“Zhejiang Wansheng’s current product portfolio includes six antidiabetic and hypertension products that are commonly used by chronic kidney disease patients, which will expand our products offering in the dialysis market in addition to our current nephrology portfolio. The acquisition also expands our portfolio of oncology drugs as Zhejiang Wansheng has six approved oncology products.”

The acquisition is expected to improve 3SBio’s position in nephrology and oncology as it provides a platform for the company to proceed with the clinical development of over 12 small-molecule pipeline candidates in their core therapeutic areas using internal facilities and expertise.

“It will also provide 3SBio with a solid base for expansion into the treatment of diabetes-related complications and dermatology, specialized markets where our academic marketing approach has the potential to build market-leading brands,” Lou added.

Zhejiang Wansheng currently has 55 product approvals addressing the oncology, diabetes, cardiovascular and dermatology areas. It has 13 production lines capable of producing various drug delivery formats, including tablets, capsules, TCM granules, injections, tinctures, ointments and lotions, all recently GMP certified. Zhejiang Wansheng currently has approximately 630 employees, including a national salesforce of around 300.

Wansheng achieved turnover of RMB 279.4 million (~US$45 million) and net profit after tax of RMB 26.6 million (~US$4.28 million) for the year ending December 31, 2014. After the acquisition, Zhejiang Wansheng will become a wholly-owned subsidiary of the 3SBio and its results will be consolidated into the company’s accounts. Additional financial details are available in the regulatory announcement submitted to the Stock Exchange of Hong Kong on July 24, 2015.

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Source: 3SBio Inc.
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