Carlyle to acquire stake in China’s Salubris Pharmaceutical for $260m

US-based investment firm Carlyle Group has entered an agreement to acquire a 5% stake in Chinese biopharmaceutical firm Shenzhen Salubris Pharmaceutical.

Carlyle is investing CNY1.78bn ($260m) to buy the minority stake, said Bloomberg. The acquisition will be made via CA Roam Holdings, an affiliate of CAP V Mauritius, which together make Carlyle.

Founded in 1998, Salubris is considered as one of the top 20 biopharmaceutical companies in China by market cap. It sells finished drugs, as well as medical devices.

The pharmaceutical company’s pipeline focuses on treatments for chronic diseases. It includes a biologic drug called JK07 to treat heart failure.

Salubris filed for clinical trial approvals of JK07 in China, as well as the US.

Salubris is currently the second-largest domestic company in the cardio and cerebrovascular (CCV) segment in China, noted Carlyle.

Carlyle Asia Buyout advisory team managing director Ling Yang said: “We are excited to have the opportunity to invest in Salubris, which has emerged as a leading player in the world’s second-largest pharmaceutical market.

“Salubris has one of the strongest franchises in CCV in China, and has made significant progress in developing an innovative drug pipeline through both in-house R&D as well as strategic M&A and licensing deals.”

As part of the deal, the parties will integrate their respective capabilities to speed-up Salubris’ growth into a global pharmaceutical company.

Salubris will leverage Carlyle’s industry expertise, network and resources to support domestic and international expansion through organic growth and mergers and acquisitions.

In addition, the pharmaceutical company will utilise Carlyle’s global clinical resources to progress the research and development (R&D) of its global products.

Salubris Pharmaceutical CEO and director Kevin Ye said: “As China’s industry landscape continues to transform, we are focused on further strengthening Salubris’s innovative drug pipeline and building upon the company’s leading franchise in CCV.

“As one of the largest private investment firms with an extensive track record in healthcare investments across the world, Carlyle’s significant experience, resources and network will be extremely valuable in our efforts, particularly as we look to optimise our operations and develop our international footprint.”

As of 30 June, Carlyle has invested more than $13.4bn in more than 80 deals in the healthcare sector worldwide.