SHANGHAI (Reuters) - China’s 3SBio Inc (1530.HK) has agreed to buy the contract development and manufacturing unit of Canada’s Therapure Biopharma Inc for $290 million, part of a push by the Chinese biotech company into the North American market.
The deal, being done through a venture set up by 3SBio and CITIC Private Equity investment, fits with a push by Chinese drugmakers and biopharmaceutical companies to increase their role in the global market.
“3SBio’s global expansion strategy is now on fast track,” Jing Lou, chairman of 3SBio, said in a statement on Sunday.
“We intend to accelerate the development and commercialization of innovative products toward our ultimate goal of benefiting patients around the world.”
3SBio, a major Chinese biopharmaceutical with a focus on oncology, auto-immune diseases and nephrology, will also get some rights to Therapure’s plasma products and technology for the Chinese market, the Canadian firm said in a separate statement.
The Chinese firm and its private equity partners will also invest an additional C$20-C$25 million ($16.1-$20.2 million) in Therapure’s plasma protein and therapeutics business to fund the construction of a new facility.
The contract development and manufacturing unit - Therapure Biomanufacturing - will continue to operate under the Therapure brand and be led by Therapure’s current chief executive, Nick Green, and the current senior management team at its manufacturing facilities in Mississauga, Ontario.
Therapure, controlled in by Canadian private equity firm The Catalyst Capital Group Inc, was advised on the deal by Wells Fargo Securities as its exclusive financial adviser.
Catalyst will retain ownership of Therapure’s plasma protein and therapeutic products business as a separate entity.
Reporting by Adam Jourdan; Editing by Amrutha Gayathri