Mubadala and CBC Group Buy UCB Pharma Business in China

Continuing its overseas investments spree, Abu Dhabi’s sovereign investor Mubadala Investment Company on Monday announced that it has acquired 100% ownership along with Singapore headquartered CBC Group, Asia’s largest health-care dedicated asset management group, in the carve-out of UCB Pharma’s Business in China for $680 million.

UCB, a global biopharmaceutical company headquartered in Belgium, occupies a market-leading position in the strong and expanding immunology, neurology and rare disease market in China, and is strategically poised for growth in its Central Nervous System (CNS) originator drug portfolio.

The scope of this acquisition includes UCB’s neurology portfolio (Keppra®, Vimpat®, Neupro®) and allergy portfolio (Zyrtec®, Xyzal®) in Mainland China, as well as UCB’s Zhuhai manufacturing site. In 2023, the combined net sales for these medicines in China were $146.46 million.

The transaction remains subject to certain closing conditions, including required anti-trust clearance(s) and other customary conditions, and is expected to close in Q4 2024. This investment aligns with Mubadala’s vision to expand its footprint across Asia through selective investment across diverse sectors with strong growth potential.

Healthcare, and specifically pharma carve-outs, are at the forefront of this investment strategy. Additionally, the strategic collaboration with CBC Group, following the Hasten Biopharma acquisition, underscores Mubadala’s ongoing commitment to establishing dedicated platforms to target and serve unmet needs in China and the broader Asia healthcare markets.

Transformative Medicines

Mohamed Albadr, Head of China at Mubadala, said that they will partner with CBC Group to support the next phase of UCB’s platform as it scales to a leading entity in China and delivers transformative medicines to the markets. The company’s dedication to clinical excellence and innovation aligns with our commitment to enhancing access to care and growth in the healthcare system, he added.

Mina Hamoodi, Head of Healthcare at Mubadala, said that central nervous system (CNS) is a large and growing therapeutic area in China that has an urgent clinical need and they were looking forward to build out a broader CNS-focused platform to benefit the China market.

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

He also said that their dedication to serving patients with unmet needs in China remains steadfast. Building on UCB’s 28-year presence in the country, they were committed to driving patient outcomes through continued collaboration with local partners and fostering innovation.

Regarding the agreement, Jean-Christophe also said that they were convinced that the CBC Group and Mubadala were the ideal partners to advance the medicine portfolio and continue to improve the lives of people living with neurology and allergy diseases in mainland China.

CBC Group CEO Fu Wei said that the demand for CNS products in China has been increasing over the past decade, and by leveraging CBC’s unique investor-operator approach, they were excited to channel their expertise, resources and platform synergies to meet these evolving needs and drive value for their stakeholders.

“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. It will complement our existing healthcare ecosystem, serving as an anchor asset to further build out a leading integrated CNS biopharma platform in China that will deliver gold standard treatment to more patients nationwide,” Wei added.