GC Holdings to Sell Hong Kong Subsidiary to China Resource Boya Bio-pharmaceutical for $250 million

GC Holdings, the parent company of GC Biopharma, signed a share purchase agreement (SPA) with China Resource Boya Bio-pharmaceutical, a subsidiary of China Resources Pharmaceutical Group Limited (CR Pharma), a state-owned enterprise. Under the agreement, GC will sell its entire stake in its Hong Kong subsidiary to CR Boya Bio-pharmaceutical for 1.82 billion yuan ($250.3 million). This sale includes GC's full ownership of six companies in China, including GC China.

GC Holdings has also entered into a distribution agreement with CR Pharma for the sale of products of GC Biopharma and GC Wellbeing in China.

Notably, CR Pharma will distribute GC Biopharma's two products within China – Greencross Human Serum Albumin and GreenGene F (recombinant hemophilia treatment), which are both produced at its Ochang plant in Korea. CR Pharma will also handle the distribution of GC Wellbeing's hyaluronic acid fillers in China, further accelerating GC's business expansion in the region.

Aside from the SPA and distribution agreement, the two companies also signed a strategic cooperation framework agreement aimed at leveraging the proprietary technologies and products of GC Holdings to create synergies between the two companies.

The agreement encompasses collaborative efforts in blood plasma products, vaccines, cell and gene therapy, diagnostic business technologies, licensing, joint research and development, technology transfer, and contract development and manufacturing organization (CDMO) services, among other areas. This collaboration aims to drive technological innovation in product development. "Through this strategic partnership, we can eliminate the uncertainties that have persisted in our China operations and aim to strengthen our financial soundness," a GC Holdings official said. "We will achieve global growth by leveraging both the U.S. and Chinese markets."