By Fineline Cube 
Tianjin Pharmaceutical Da Ren Tang Group Co., Ltd. (SHA: 600329), a traditional Chinese medicine (TCM) enterprise, has completed the transfer of its 4.6% and 7.4% equity stakes in Tianjin Shike Pharmaceutical Co., Ltd. to Haleon (China) Co., Ltd. and Haleon CH SARL for RMB 622 million (USD 85 million) and RMB 1.001 billion (USD 137 million), respectively. The transaction is expected to impact Da Ren Tang’s current investment income by approximately RMB 1.54 billion (USD 211 million).
Transaction Details
Da Ren Tang has divested its remaining 12% stake in Tianjin Shike Pharmaceutical, originally a joint venture established by GlaxoSmithKline plc (GSK, NYSE: GSK), Da Ren Tang (formerly Tianjin Zhongxin Pharmaceutical Group Co., Ltd.), and Tianjin Pacific Group. Following GSK’s 2022 spin-off of its consumer healthcare business into Haleon plc (LON: HLN), which controls both Haleon (China) and Haleon CH SARL, this transaction marks Da Ren Tang’s full exit from the joint venture.
Market and Financial Impact
The transaction not only concludes Da Ren Tang’s involvement in Tianjin Shike but also reflects broader trends in the consumer health products market, where companies are restructuring to focus on core competencies. The financial gain from this divestment positions Da Ren Tang to explore new investment opportunities and strategic initiatives.-Fineline Info & Tech