China-based biotech company Sino Biopharmaceutical Ltd (HKG: 1177) has announced the sale of an 84.2% stake in its former subsidiary, Shanghai CP General Pharmaceutical Co., Ltd. This strategic divestiture is expected to generate approximately RMB 290 million (USD 40 million) for the company.
Focus on Core Competencies Amid Financial Losses
Shanghai CP General primarily operates as a manufacturing facility, producing creams, ointments, eye ointments, injections, and suspensions. The decision to offload this subsidiary comes on the heels of CP General reporting RMB 59 million in revenues alongside a net loss of RMB 35 million in 2022. By divesting this asset, Sino Biopharmaceutical aims to enhance its net profit margin and concentrate on high-growth areas.
Strategic Shift Towards Oncology and Beyond
Following this sale, Sino Biopharmaceutical plans to sharpen its focus on oncology, liver disease, respiratory conditions, and surgical/analgesic fields. This strategic realignment is expected to strengthen the company’s position in these critical therapeutic areas, paving the way for future growth and innovation.
Conclusion: A New Chapter for Sino Biopharmaceutical
With the sale of Shanghai CP General, Sino Biopharmaceutical is poised to streamline its operations and enhance profitability. The company’s renewed focus on oncology and other vital therapeutic areas underscores its commitment to advancing healthcare solutions in China.-Fineline Info & Tech
