The acquisition will significantly enhance the Chinese pharmaceutical firm's international capabilities
Chinese firm Luye Pharma Group has agreed to buy the transdermal delivery business of Switzerland-based pharmaceutical firm Acino for €245 million.
The business unit is a specialist in advanced transdermal drug delivery systems and one of the largest independent manufacturers of these products in Europe. The firm develops, produces and distributes therapeutic systems for drug release and related products, and provides related services, including transdermal systems and subcutaneous implants.
Luye Pharma said the business unit's product portfolio is focused on more sophisticated and higher margin speciality patch categories such as the central nervous system (CNS), pain and hormone space, including Rivastigmine, Buprenorphine, Fentanyl and fertility control patches.
The firm said the transdermal delivery business unit has a stable cash flow and a relatively high level of net profit margin, primarily generated from developed markets. It also has factories with European Good Manufacturing Practice (GMP) certificates and with certification from the US FDA.
'As we execute our international strategy, this transaction serves as an important milestone,' said Dr Yehong Zhang, Chief Executive of Luye Pharma (International).
'With its innovative technology platform, focused product portfolio, loyal customer base and experienced leadership, this acquisition will significantly enhance Luye Pharma's international capabilities and accelerate its penetration into broader therapeutic areas and geographies.'
Kalle Kand, CEO at Acino, a Swiss pharmaceutical firm headquartered in Zurich, added: 'The divestment will allow us to focus on the growth in our key markets, and we believe that Luye's vision and strategy fits better with our R&D and manufacturing capabilities in our present TDS business. An R&D focused company like Luye will be able to leverage the high potential of our TDS operations in the best possible way also in the future.'