Chinese Jiuzhou Pharma's Shares Jump on Plan to Buy Swiss Novartis's Suzhou Arm
Zhang Yushuo
DATE:  Sep 05 2019
/ SOURCE:  yicai
Chinese Jiuzhou Pharma's Shares Jump on Plan to Buy Swiss Novartis's Suzhou Arm Chinese Jiuzhou Pharma's Shares Jump on Plan to Buy Swiss Novartis's Suzhou Arm

(Yicai Global) Sept. 5 -- The stock price of Jiuzhou Pharmaceutical gained after the Chinese firm said it will acquire Novartis Pharma Technology, a Chinese unit of Swiss drug giant Novartis, for CNY790 million (USD111 million) to increase its manufacturing services offered to other companies. 

Jiuzhou Pharma's [SHA:603456] share price rose 4.3 percent to CNY13.35 (USD1.90) this morning. 

Before the acquisition, Novartis Pharma Technology will divest its technological and drug development assets held by Novartis International Pharmaceutical Investment, the Taizhou-based buyer, which makes cancer and diabetes drugs, said in a statement yesterday.

Novartis Pharma Technology will provide domestic and overseas innovative medical firms with active pharmaceutical ingredients and intermediates while expanding Jiuzhou Pharma's business as a contract development and manufacturing organization, the latter added. 

In the past three years, Basil-headquartered Novartis has been among the top five customers of Jiuzhou Pharma. The pair started cooperating in the 1990s. The Suzhou unit of Novartis has more than 400 employees and its innovative products include those to treat heart failure, breast cancer, and leukemia.

Last year, Jiuzhou Pharma's CDMO business achieved CNY537 million in sales revenue, rising nearly 23 percent from the previous year. 

Editor: Emmi Laine 

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Keywords:   Jiuzhou Pharmaceutical,Novartis