A PYMNTS Company

Japan Drugmaker Shionogi To Tie Up With China’s Ping An

By  |  March 30, 2020

Japan’s Shionogi, creator of the blockbuster cholesterol treatment Crestor, announced on Monday, March 30, it would tie up with Ping An Insurance Group of China, selling a 2.05% voting stake for 33.53 billion yen (US$311 million). 

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Shionogi will form a joint venture with the Chinese group’s unit, Ping An Life Insurance of China Ltd, with the aim of discovering and distributing new drugs and developing generic ones as it looks to expand in China, reported Reuters. 

    “To attain our growth strategy beyond 2020, we must realize the expansion of our business in China, which is expected to show the greatest pharmaceutical market growth in the world over the next 10 years,” Shionogi said in the statement. 

    Shionogi, which gains roughly half its revenue from royalties, posted four-straight years of record operating profit through 2019. It focuses on infectious diseases but a looming patent cliff for its HIV treatments will create an earnings gap that will be hard to completely offset. 

    Ping An Insurance Group, China’s largest insurer by market value, said in February it expected the coronavirus outbreak to affect its business in the first half.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.