Belgium's UCB to sell China neurology, allergy business for $680 million

UCB a Belgian biopharmaceutical firm, said on Monday it would sell its Chinese neurology and allergy business to Singapore-based asset management group CBC and Abu Dhabi sovereign investor Mubadala for $680 million.

The deal includes UCB's neurology portfolio comprising drugs like Keppra, Vimpat and Neupro, and anti-allergy medicines Zyrtec and Xyzal, commonly used to treat watery eyes and runny noses.

The Brussels-listed firm will also sell a manufacturing site in Zhuhai city.

UCB said in a statement there would be no impact on its forecast for 2024 and the deal was expected to close in the fourth quarter.

"In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China," UCB CEO Jean-Christophe Tellier said.

The deal will allow the company to focus its efforts on innovation and partnerships, ensuring its strategic goals align with the evolving demands of the Chinese market, it said.

Some of the biggest global drugmakers, undeterred by mounting Sino-US tensions, are scouring for deals in China to replenish drug pipelines and boost their presence in the world's second-biggest pharmaceutical market, industry executives and investment bankers have said.

"The demand for central nervous system products in China has been increasing over the past decade," CBC CEO Fu Wei said.

"This strategic deal aligns with CBC's strategy of investing in high-potential companies with quality products, strong brand equity, dedicated talents and steady growth outlook," he added.

CBC is Asia's largest healthcare-focused asset management firm with assets under management of $8.8 billion, according to the statement.

The deal adds to CBC and Mubadala's partnership. The Abu Dhabi-based investor in October last year invested in CBC's APG-backed Chinese life-science real estate investment platform.

In April 2023, CBC and Mubadala were the lead investors in a $315 million fundraising round for Chinese biopharma company Hasten.

UCB's shares have jumped 104 per cent year-to-date, giving it a market value of $34.8 billion on Monday, according to LSEG data.

Lazard is the financial adviser to UCB with Freshfields Bruckhaus Deringer as the legal adviser. PJT Partners is the financial adviser to CBC and Mubadala with Clifford Chance as legal adviser, the statement showed.