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UCB, a Belgian-based biopharmaceutical company, will sell its mature neurology and allergy business in China to Singapore-based asset management group CBC and Abu Dhabi-based investment company Mubadala for US$680 million (about 4.843 billion yuan).   The transaction includes epilepsy drug brands Keppra and Vimpat, Parkinson's drug brand Neupro, allergy drug brands Zyrtec and Xyzal, and the company's Zhuhai production base. According to UCB, the net sales of these drugs in China in 2023 totaled 131 million euros.   The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2024.   Jean-Christophe Tellier, CEO of UCB, said: "In the short term, UCB is exploring the launch of new medicines in the fields of immunology, neurology and rare diseases in China. We remain steadfast in our commitment to serving patients with unmet needs in China. With our 28 years of operating experience in China, we are committed to driving patient outcomes through continued collaboration with local partners and promoting innovation."   CBC Group CEO Wei Fu said: "Over the past decade, China has seen growing demand for central nervous system (CNS) products, and by leveraging CBC's unique investor-operator model, we are excited to leverage our expertise, resources and platform synergies to meet these evolving needs and create value for our stakeholders."   Mohamed Albadr, Head of Mubadala China, said: "We are pleased to partner with CBC Group to support the next phase of UCB's platform development to become a leading entity in China and deliver transformative medicines to the market. The company's commitment to clinical excellence and innovation is consistent with our commitment to improving access to healthcare services and promoting the development of healthcare systems."   UCB said the transaction will enable it to focus on innovation and collaboration, ensuring that its strategic goals are aligned with the evolving needs of the Chinese market.

The deal is expected to close in the fourth quarter and will not weigh on UCB’s 2024 financial guidance, the company explained in a release. Restructuring seems to be the name of the game for many large drugmakers these days, and Belgium-based UCB is no exception.Early Monday, UCB revealed that it’s selling off its mature neurology and allergy business in mainland China to local healthcare asset manager CBC Group and Abu Dhabi-based investment firm Mubadala. UCB is in line to receive $680 million from the transaction, which covers the seizure drugs Keppra and Vimpat, Neupro for Parkinson’s disease and restless leg syndrome, and the allergy meds Zyrtec and Xyzal. UCB is also pawning off a manufacturing site in the city of Zhuhai in China’s Guangdong Province as part of the divestment deal, the company said in a release.  UCB says the deal will help more patients benefit from the company’s past innovations, noting that CBC and Mubadala are partnering to develop and operate a “new leading neurology” company at scale in China leveraging UCB’s drug portfolio and factory. "In the short term, UCB is exploring the launch of novel medicines in immunology, neurology, and rare diseases in China," the company’s CEO, Jean-Christophe Tellier, said in a statement. “Building on our 28-year presence in the country, we are committed to driving patient outcomes through continued collaboration with local partners and fostering innovation.” The deal is expected to close in the fourth quarter and will not weigh on UCB’s 2024 financial guidance, the company added. UCB’s divestment follows a similar trend in which large pharmas have recently opted to enlist local partners to help commercialize their medicines in China. Pfizer in November inked a deal with Keyuan Pharma, granting the Shanghai drugmaker exclusive Chinese rights to distribute and promote its pneumococcal vaccine Prevenar 13, which goes by the name Prevnar 13 in the United States. Prior to that, GSK tapped Chongqing Zhifei Biological Products—the China marketer of Merck’s HPV short Gardasil—to distribute its shingles vaccine Shingrix in the country. Biogen and Sanofi have also reworked parts of their China businesses in recent months. Leveraging local partners in China has been on the upswing lately, partly because “there is increasing pricing and competitive pressure in the market, especially for mature products, leaving reduced [return on investment] for in-house commercial resources,” Justin Wang, head of L.E.K Consulting’s China practice, told Fierce Pharma last year.  Meanwhile, certain drugmakers—especially in the U.S.—are considering shying away from Chinese partners in the wake of the BIOSECURE Act, which aims to block certain Chinese biotech equipment and service providers from the U.S. market over national security concerns. Among U.S.-based life sciences companies, confidence in working with Chinese companies has plunged, according to a L.E.K. survey released earlier this summer. The issue is less pronounced with companies outside the U.S., where L.E.K. reported a milder decrease in confidence levels.