Australian biotech giant CSL disclosed a deal on Tuesday that will see it acquire an 80-percent stake in China's Wuhan Zhong Yuan Rui De Biologics (Ruide) for 352 million U.S. dollars later this year.
CSL will purchase their stake from Humanwell Healthcare Group, which will see the Australian company further enter into the Chinese healthcare sector, in a complementary move as both companies are heavily involved in the production of plasma products.
Paul Perreault, chief executive officer of CSL, said in a statement on Tuesday that he is looking forward to the move, which will see his company enter into a partnership with China's Humanwell.
"Humanwell is a leading Chinese healthcare company with strong capabilities in pharmaceutical manufacturing, sales and distribution, as well as health care services," Perreault said.
"CSL is driven by our promise to save lives and protect the health of people around the world. This expansion of our footprint in China through an investment in Ruide supports the delivery of this promise."
The chairman of Humanwell Wang Xuehai also welcomed the sale, saying that he was "excited" to begin a "long-term collaboration" with the Australian global leader in the field of biopharmaceuticals.
"Combining CSL's advanced technical capabilities with Ruide's established presence in the Chinese plasma sector will enable the partners to improve access to innovative therapies for patients that need them." Wang said.
The market for plasma products in China topped 3.3 billion Australian dollars (2.49 billion U.S. dollars) in 2016, with an aggregate 15-percent growth rate over the past five years.
The deal will be financed under CSL's current debt facility.
