(Yicai Global) March 26 -- Chinese drug manufacturing services provider Porton Fine Chemicals Ltd. has aborted plans to acquire drug manufacturing assets from an unnamed North American biopharmaceutical firm, citing uncertainties in the current international political environment.
The Chongqing-based firm also attributed complexities related to Chinese-funded firms' overseas investments for the canceling of the transaction, said to be worth USD1 million. The deal would have included personnel, research and development facilities and production equipment, it said in a statement.
Chinese firms have found it difficult to complete overseas investments in the US this year amid a heightened state of protectionism. Already in 2018, the Committee on Foreign Investment in the United States has vetoed the acquisition of US payment giant Moneygram International Inc. by Ant Financial Services Group, Alibaba's fintech affiliate, citing national security issues.
The US-firm concerned, reportedly based in San Diego, California, received poor results for the third phase of clinical trials of a research product, leading to it planning a sell-off to ensure stable cash flow to support ongoing R&D and marketing for other high-potential projects.
Porton Fine Chemicals had originally aimed to obtain a platform for early-stage manufacture of biopharmaceuticals in North America through the acquisition. The transaction value was not expected to exceed USD1 million.
The company also announced on Jan. 25 that its wholly-owned subsidiary, Porton USA LLC intends to acquire 100 percent stake in J-STAR Research Inc., a chemical services company based in New Jersey for USD26 million. However, the firm is yet to provide an update on the transaction.