By Fineline Cube Grand Pharmaceutical Group Limited (HKG: 0512) announced plans to acquire 100% equity in Hebei Grand Jiufu Biotechnology Co., Ltd. and Baoding Jiahe Fine Chemical Co., Ltd. for RMB 316 million (USD 45.5 million). The targets, valued at RMB 324 million (USD 46.7 million), are engaged in sales of pharmaceutical intermediates and APIs for human drugs in China.
Transaction Structure & Target Profile
| Item | Detail |
|---|---|
| Acquirer | Grand Pharmaceutical Group Limited (512.HK) |
| Targets | Hebei Grand Jiufu Biotechnology Co., Ltd. & Baoding Jiahe Fine Chemical Co., Ltd. |
| Purchase Price | RMB 316 M (USD 45.5 M) |
| Target Valuation | RMB 324 M (USD 46.7 M) |
| Business Focus | Pharmaceutical intermediates and active pharmaceutical ingredients (APIs) |
| Market | Human drugs in China |
| Strategic Rationale | Vertical integration of API supply chain |
Market Impact & Strategic Outlook
- China API Market: Valued at ¥500 billion : (~US$70 billion) in 2025; vertical integration reduces supply chain risk and manufacturing costs
- Strategic Value: Acquisition secures stable API supply for Grand’s finished dosage formulations; targets’ existing customer base provides immediate revenue synergies
- Cost Synergies: Analysts estimate ¥50–80 million : (US$7–11 M) annual cost savings from integrated procurement and manufacturing optimization by 2027
- Revenue Contribution: Combined targets generated estimated ¥200–250 million : in 2025 sales; acquisition immediately accretive to Grand’s top line
- Competitive Landscape: Positions Grand among vertically integrated Chinese pharma groups like Zhejiang Medicine and North China Pharmaceutical
- Next Steps: Transaction expected to close Q2 2026; integration of quality systems and supply chain management to begin immediately
Forward‑Looking Statements
This brief contains forward‑looking statements regarding transaction completion timelines, cost synergies, and revenue contributions from the acquisition. Actual results may differ due to regulatory approvals, integration challenges, and market conditions.-Fineline Info & Tech