3SBio Inc., (HKEX:1530) ("3SBio" or 'the Company"), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that it has acquired the entire equity interest in Zhejiang Wansheng Pharmaceutical Co., Ltd ("Zhejiang Wansheng") a limited liability company incorporated in the PRC for an aggregate consideration of RMB 528 million.
"3SBio's proven capabilities in biologicals, combined with Zhejiang Wansheng's expertise in small molecule manufacturing, will provide the enlarged group with a flexible platform for addressing the unmet medical needs of patients and their healthcare professionals. Zhejiang Wansheng's current product portfolio includes six antidiabetic and hypertension products that are commonly used by chronic kidney disease patients, which will expand our products offering in the dialysis market in addition to our current nephrology portfolio. The acquisition also expands our portfolio of oncology drugs as Zhejiang Wansheng has six approved oncology products," commented Dr. Lou Jing, CEO and Chairman of 3SBio.
"The acquisition will further solidify 3SBio's leading position in nephrology and oncology as it also provides a platform for the company to proceed with the clinical development of over 12 small-molecule pipeline candidates in our core therapeutic areas using internal facilities and expertise, including HIF-PH inhibitor for anemia; cinacalcet hydrochloride for hyperparathyroidism; sevelamer carbonate for hyperphosphatemia; Colestilan for hyperphosphatemia and hypercholesteremia; DJ5 for autosomal dominant polycystic kidney disease (ADPKD); PEG-Irinotecanfor solid tumors; nadroparin calcium for blood clotting and thrombosis; and fondaparinux sodium for prophylaxis of deep vein thrombosis."
"It will also provide 3SBio with a solid base for expansion into the treatment of diabetes-related complications and dermatology, specialized markets where our academic marketing approach has the potential to build market-leading brands. Qiming Keli is one of few treatments for diabetic retinopathy, an ophthalmological disorder which affects approximately 34% of diabetic patients, or about 93 million globally, many of whom also suffer from kidney disease. In dermatology, we will also seek further indications for fexofenadine hydrochloride, a treatment for chronic idiopathic urticaria, a skin condition common to many dialysis patients."
Mr. Luo Xie Long, CEO of Zhejiang Wansheng commented, "3SBio is a leading player in the biopharma industry in China. Joining the 3SBio group will expand our pipeline and commercial capability, and further drive the growth of Wansheng. We look forward to working on these opportunities with our 3SBio colleagues."
Zhejiang Wansheng currently has 55 product approvals addressing the oncology, diabetes, cardiovascular and dermatology areas. It has 13 production lines capable of producing various drug delivery formats, including tablets, capsules, TCM granules, injections, tinctures, ointments and lotions, all recently GMP certified. Zhejiang Wansheng currently has approximately 630 employees, including a national salesforce of around 300.
Wansheng achieved turnover of RMB279.4 million and net profit after tax of RMB26.6 million for the year ended December 31, 2014. After the acquisition, Zhejiang Wansheng will become a wholly-owned subsidiary of the Company and its results will be consolidated into the accounts of the Company. Additional financial details are available in the regulatory announcement submitted to the Stock Exchange of Hong Kong on July 24, 2015.