GC Group to sell Hong Kong subsidiary to Chinese pharma

[Courtesy of GC Group]

South Korea’s GC Group announced on Wednesday that it has signed a stock purchase agreement (SPA) with CR Boya Bio-pharmaceutical, a subsidiary of China’s state-owned CR Pharmaceutical Group, to sell all shares of its Hong Kong subsidiary.

The sale includes the entire equity of GC’s Hong Kong subsidiary, along with its six China-based subsidiaries, including GC China.

The transaction is valued at 1.82 billion yuan ($250 million). This move aims to enhance GC’s financial health and provide funds for future strategic investments.

CR Pharmaceutical Group, one of China’s top three pharmaceutical companies, recorded sales of 244.7 billion yuan last year. The new distribution agreement will see CR Pharmaceutical Group handle the sales of key products from GC Biopharma and GC Wellbeing within China.

Furthermore, both companies have agreed to explore business synergies through GC’s proprietary technologies and products.

With CR Pharmaceutical Group’s extensive distribution network across China, GC Group anticipates a significant boost in its export capabilities to the Chinese market.

GC Biopharma plans to distribute its blood product Albumin and hemophilia treatment GreenGene F through CR Pharmaceutical Group.

In related news in the Korean biotech sector, SK biopharmaceuticals has signed a licensing agreement with Hong Kong-based Full-Life Technologies to acquire the global development and commercialization rights for a radiopharmaceutical therapy (RPT) candidate FL-091, which targets neurotensin receptor 1 (NTSR1). This marks SK biopharmaceuticals’ first technology acquisition since declaring its entry into the RPT sector last year.

Full-Life Technologies, a global radiopharmaceutical therapy company operating in Belgium, Germany, and China, will receive a total of $571.5 million from the agreement, including upfront payments and development and sales milestones.

FL-091 is a small molecule-based RPT targeting the NTSR1 receptor, which is overexpressed in several cancers, including colorectal, prostate, and pancreatic cancers.