Mar 08, 2019 (China Knowledge) - Spanish multinational pharmecutical and chemicals manufacturer Grifols SA has agreed to purchase a stake in Shanghai RAAS Blood Products Co. for USD 1.9 billion as it looks to gain a foothold in the country’s fast-growing blood-products market.
Grifols will acquire a 26% stake in Shanghai RAAS by transferring 45% of the economic rights and 40% of voting rights n its US subsidiary Grifols Diagnostic Solutions to the Chinese producer in a noncash deal.
Grifols Diagnostic Solutions has a valuation of USD 4.3 billion, making the stake in Shanghai RAAS worth about USD 1.9 billion.
Under the deal, Grifols which is the world’s largest manufacturer of immunoglobulin will provide the technology and expertise, as well as engineering services to Shanghai RAAS in exchange for fees while, the Chinese company will become the former’s exclusive distributor of plasma-derived products and transfusion diagnostic solutions in China.
The move by the Spanish company comes as demand for human serum albumin, a plasma-derived product used to treat liver diseases has been steadily increasing in China. With supplier for the product limited by strict rules surrounding blood donation, which presents an opportunity for the company.
The deal also helps with the company’s aim to diversify itself away from the US and increase its presence in China. Last year, Grifols had also completed a deal with Jiangxi Boya Bio-Pharmaceutical Group Co. to build and manage plasma collection centers.
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