China-based Ningbo Menovo Pharmaceutical Co., Ltd (SHA: 603538) has announced plans to transfer all of its ownership in Zhejiang Liaoyuan Pharmaceutical Co., Ltd (23,771,218 shares, or 84.5661% of the target company’s total shares) to Jiangxi Jemincare Group for a consideration of RMB 512.58 million (USD 71.2 million). The deal is expected to yield an investment income of RMB 218.78 million (USD 30.3 million) and net profits of RMB 172.58 million (USD 23.9 million).
Liaoyuan Pharma and Product Portfolio
Liaoyuan Pharma manufactures a range of pharmaceuticals, including duloxetine, mirtazapine, and clopidogrel. The equity transfer will result in a short-term reduction in Menovo Pharma’s product portfolio. In response, Menovo Pharma plans to intensify its focus on the research and development of new drugs and the expansion of its contract development and manufacturing organization (CDMO) services.
Jemincare Group and Future Outlook
Founded in 1999, Jiangxi Jemincare Group is focused on kidney disease, cancer, cardio-cerebral vascular disease, respiratory disease, anti-infection, and pain management. The company has a robust product pipeline, including over 20 Category 1 drug candidates, indicating significant CDMO needs. The acquisition of Liaoyuan Pharma’s stake aligns with Jemincare’s strategic focus on expanding its research and development capabilities and enhancing its market position in the pharmaceutical sector.-Fineline Info & Tech
