Shanghai Pharmaceuticals on the prowl for acquisitions in US and Europe
The Chinese pharmaceutical firm plans to open a research centre in San Diego and acquire rights to distribute newly developed drugs in the US in China
Shanghai Pharmaceuticals Holding, one of China’s largest pharmaceutical firms, is scouting for acquisitions in the United States and Europe, despite increased scrutiny of Chinese investments.
Acquisitions, including overseas ones, is one of the firm’s two-pronged development strategy besides in-house research and development, according to chairman of Zhou Jun.
“We are deploying more people and financial resources to do our own research and development, and are also seeking to gain technology and market access through the short-cut route of acquisitions,” he told the South China Morning Post in an interview on the sidelines of the JP Morgan Healthcare Conference in San Francisco earlier this month.
The Hong Kong and Shanghai-listed firm has spent US$100 million to US$150 million annually on R&D, amounting to 15 to 20 per cent of its profit in recent years.
It focuses mainly on treatments for digestive, metabolic, cardiovascular, infectious, nervous system and mental diseases.
The company, 35.5 per cent controlled by the Shanghai municipal government’s Shanghai Industrial Investment (Holdings), in November announced plans to buy Cardinal Health’s China operations for about US$557 million.