Mubadala Investment Co., the UAE’s sovereign wealth fund, has partnered with healthcare-focused asset manager CBC Group to acquire 100% ownership of UCB Pharma’s mature business in China.
UCB, a Belgium-based global biopharmaceutical company, is expanding into China’s growing immunology and neurology markets.
Mubadala did not disclose how many shares it will hold or the value of the transaction, which is expected to close in the fourth quarter of 2024.
Mubadala said in a post on X that the acquisition marks another milestone in its strategy to expand its presence in Asian markets, particularly in the fast-growing healthcare sector.
Mohammed Al Badr, Mubadala’s head of China, said: “We are excited to partner with CBC Group and support the next stage in growing the UCB platform into a leading player in China and bringing innovative medicines to market.”
He added: “Our commitment to clinical excellence and innovation aligns with our commitment to improving access to care and growing the health system.”
The acquisition covers UCB’s neurology portfolio, which includes widely recognised medicines Keppra, Vinpat and Neupro, which are essential in the treatment of epilepsy and other neurological disorders, an area of growing demand in China.
The deal also included UCB’s allergy portfolio, which includes the antihistamines Zyrtec and Xyzal.
The medicines could generate combined sales of €131 million ($146 million) in China in 2023. The transaction is subject to certain closing conditions, including antitrust clearance and other customary approvals.
Mubadala and CBC Group also acquired ownership of UCB’s Zhuhai manufacturing facility, a key hub supporting the manufacturing and distribution of these products in mainland China.
“CNS is a therapeutic area experiencing significant growth in China with urgent clinical needs,” said Mina Hammoudi, head of Mubadala’s healthcare division. “We look forward to building a broader CNS-focused platform to benefit the China market.”
Mubadala’s investment is in line with its broader strategy to selectively invest in high-growth sectors across Asia, with healthcare, and in particular pharmaceutical carve-outs, identified as a key area of focus.
UCB CEO Jean-Christophe Tellier said the company is looking to launch new medicines in China in the areas of immunology, neurology and rare diseases in the short term.
He said UCB remains committed to addressing unmet patient needs in China: “Building on our 28 years of experience in China, we are committed to improving patient outcomes through continued collaboration with local partners and fostering innovation.”
Tellier added: “We are confident that Mubadala and CBC Group are ideal partners to advance our medicines portfolio and continue to improve the lives of people living with neurological and allergic diseases in mainland China.”